Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 16

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 16
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allocations of existing
capital and could also mandate obtaining new capital. There can be no assurance that we will be able to complete any financing transaction
on acceptable terms.

Shortages of equipment, services and qualified
personnel could reduce our cash flow and adversely affect results of operations.

The demand for qualified and experienced field personnel
to drill wells and conduct field operations, geologists, geophysicists, engineers and other professionals in the oil and natural gas industry
can fluctuate significantly, often in correlation with oil and natural gas prices and activity levels in new regions, causing periodic
shortages. These problems can be particularly severe in certain regions where we conduct operations. During periods of high oil and natural
gas prices, the demand for drilling rigs and equipment tends to increase along with increased activity levels, and this may result in
shortages of equipment. Higher oil and natural gas prices generally stimulate increased demand for equipment and services and subsequently
often result in increased prices for drilling rigs, crews and associated supplies, oilfield equipment and services, and personnel in exploration,
production and midstream operations. These types of shortages and subsequent price increases could significantly decrease our profit margin,
cash flow and operating results and/or restrict or delay our ability to drill those wells and conduct those activities that we currently
have planned and budgeted, causing us to miss our forecasts and projections.

Competition may limit our opportunities in the
oil and natural gas business.

The oil and natural gas business is very competitive.
We compete with many public and private exploration and development companies in finding investment opportunities. We also compete with
oil and natural gas operators in acquiring acreage positions. Our principal competitors are small to mid-size companies with in-house
petroleum exploration and drilling expertise. Many of our competitors possess and employ financial, technical and personnel resources
substantially greater than ours. They also may be willing and able to pay more for oil and natural gas properties than our financial resources
permit, and may be able to define, evaluate, bid for and purchase a greater number of properties. In addition, there is substantial competition
in the oil and natural gas industry for investment capital, and we may not be able to compete successfully in raising additional capital
if needed.

The Company’s properties are concentrated
in one geographic area.

Three of the Company’s projects are located
in Oklahoma and one in Kansas. Since our properties are contained in a limited area, a number of our properties could experience the same
adverse conditions at the same time, resulting in a relatively greater