Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 314

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9A
Chunk 314
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 the statements of cash flows.
    
   Right-of-use assets obtained in exchange for new operating lease liabilities were $829,000 and $252,000 for the years ended  December 31, 2024, and 2023, respectively.

        F-
       42

        Zion Oil & Gas, Inc.

        Notes to Consolidated Financial Statements

   Note 9 - Commitments and Contingencies
    
   A. Securities and Exchange Commission (“SEC”) Investigation
    
   As previously disclosed by the Company, on  June 21, 2018, the Fort Worth Regional Office of the SEC informed Zion that it was conducting a formal, non-public investigation and asked that we provide certain information and documents in connection with its investigation. Since that date, we fully cooperated with the SEC and furnished all requested documentation.
    
   On  April 5, 2023, the Company received from the Fort Worth Regional Office of the SEC written notice to the Company concluding the investigation as to the Company and advising that the SEC does “not intend to recommend an enforcement action by the Commission against Zion.”
    
   B. Litigation 
    
   From time to time, the Company  may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes. 
    
   The Company is not subject to any litigation at the present time. 
    
   C. Asset Retirement
    
   The Company currently estimates that the costs of plugging and decommissioning of the exploratory wells drilled to date in the former Joseph License area and the present New Megiddo Valleys License 434 to be approximately $571,000 based on current cost rather than Net Present Value. The Company expects to incur such costs during 2025. Liabilities for expenditures are recorded when environmental assessment and/or remediation is probable and the timing and costs can be reasonably estimated.
    
   Changes in Asset Retirement Obligations were as follows:

       December 31,    December 31,  
   2024    2023  
   US$    US$  
   thousands    thousands  
 Asset Retirement Obligations, Beginning Balance   571   571 
 Liabilities Settled   -   - 
 Revision of Estimate   -