Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 427

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 15
Chunk 427
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   The Company’s oil and gas property represents an investment in unproved properties. These costs are excluded from the amortized cost pool until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The amount of any impairment is charged to expense since a reserve base has not yet been established. Impairment requiring a charge to expense  may be indicated through evaluation of drilling results, relinquishing drilling rights or other information.
    
   During the year ended  December 31, 2024, the Company did not record any post-impairment charge to its unproved oil and gas properties.  During the year ended  December 31, 2023, the Company recorded a non-cash post-impairment charge to its unproved oil and gas properties of $135,000. (see Note 4).
    
   Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $21,682,000 and $16,637,000 as of  December 31, 2024, and 2023, respectively.

        F-
       10

        Zion Oil & Gas, Inc.

        Notes to Consolidated Financial Statements

   Note 2 - Summary of Significant Accounting Policies (cont’d)
    
   E. Property and Equipment 
    
   Property and equipment other than oil and gas property and equipment is recorded at cost and depreciated by the straight-line method over its estimated useful life of 3 to 14 years. Depreciation charged to expense amounted to $779,000 and $767,000 for the years ended  December 31, 2024, and 2023, respectively. See Footnote 2P for a discussion of the purchase of our drilling rig and related equipment.
    
   F. Assets Held for Severance Benefits
    
   Assets held for employee severance benefits represent contributions to severance pay funds and insurance policies that are recorded at their current redemption value.
    
   G. Use of Estimates
    
   The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts