Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 385

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 15
Chunk 385
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 and accompanying notes. Actual results could differ from these
estimates.

Cash and cash Equivalents

The Company considers all highly liquid temporary
cash investments with an original maturity of three months or less to be cash equivalents. At June 30, 2025, the Company cash equivalents
totaled $11,488.

    F-7 
    OKMIN RESOURCES INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2025 

Oil and gas properties

The Company uses the
full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”).
Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized
as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development
activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the
sale or other disposition of oil and gas properties is not recognized, unless the gain or loss would significantly alter the relationship
between capitalized costs and proved reserves. 

Oil and gas properties include costs that are excluded
from costs being depleted or amortized. Oil and natural gas property costs excluded represent investments in unevaluated properties and
include non-producing leasehold, geological, and geophysical costs associated with leasehold or drilling interests and exploration drilling
costs. The Company allocates a portion of its acquisition costs to unevaluated properties based on relative value. Costs are transferred
to the full cost pool as the properties are evaluated over the life of the reservoir. Unevaluated properties are reviewed for impairment
annually and are determined through an evaluation considering, among other factors, seismic data, requirements to relinquish acreage,
drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions.

Gains and losses on the sale of oil and gas properties
are not generally reflected in income unless the gain or loss would significantly alter the relationship between capitalized costs and
proved reserves. Sales of less than 100% of the Company’s interest in the oil and gas property are treated as a reduction of the
capital cost of the field, with no gain or loss recognized, as long as doing so does not significantly affect the unit-of-production depletion
rate. Costs of retired equipment, net of salvage value, are usually charged to accumulated depreciation.

Depreciation, depletion,