Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 20

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 20
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 since 2019 due to line leaks and lower gas prices, though
in April 2021 some wells were put back online and have at various intervals produced between 100 - 300 thousand cubic feet per
day (MCFD).

The existing seven wells
show additional behind-pipe zones and the joint venture partners assessed recompleting a new zone in one of the wells called the KDC.
The operator had a rig out on site at KDC in late January 2023 and commenced some work on the well and were planning to conduct a recompletion,
though weather conditions made it too dangerous to proceed. Plans were also underway for the operator to commence repairing
or possibly replacing the plunger lift systems of some of the wells, with the goal of dewatering the wells to enable the gas to flow freely.
The joint venture partners have temporarily deferred pursuing this active rework activity following the downturn in natural gas pricing
or until additional capital is available.

A hydrocarbon survey was
conducted in July 2022 across these leases utilizing a third party patented remote sensing technology. The survey has provided the operator
with valuable data in charting the potential for the future development of this project. There is also space to drill new gas wells on
the 3,840-acre leasehold, using the hydrocarbon mapping as a tool to locate the optimal drilling locations in these reservoirs. 

In the six months ended December 31, 2024, the Company’s
lease operating expenditures on the project were $9,428 with additional gas fees, transportation and taxes aggregating $464. For the six
months ended December 31, 2024 the Company recorded $1,238 in revenues from the project compared to revenues for the six months ending
December 31, 2023 of $10,562. The revenue amount for the current six-month period was negatively affected by a reduction in production
and differences between revenue accruals made during the first quarter which were later adjusted downward in the second quarter due to
the final sales receipts.

The operator believes with additional
capital expenditures for reworking and recompletion efforts it can further optimize the production potential of this field. The application
of newer technologies could also have an important impact on the economics for this asset.

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Management is actively evaluating various new strategic
investment and acquisition opportunities in the resources sector, including opportunities to potentially broaden our activities beyond
the development of conventional oil and gas projects.

No agreements to acquire