Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 89

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 89
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 cease operations.

Drilling for and producing oil and natural
gas are highly speculative and involve a high degree of risk.

Exploring for and developing
oil and natural gas involves a high degree of operational and financial risk. Predicting the costs involved in exploration and drilling
is difficult to achieve with a high degree of certainty. Our potential drilling locations are in various stages of evaluation, ranging
from locations that are ready to drill, to locations that will require substantial additional interpretation before they can be drilled.
The budgeted costs of planning, drilling, completing and operating wells are often exceeded, and such costs can increase significantly
due to various complications that may arise during the drilling and operating processes. Before a well is spudded, we may incur significant
licensing, geological and geophysical costs, which are incurred whether a well eventually produces commercial quantities of hydrocarbons
or is drilled at all. Exploration wells bear a much greater risk of loss than development wells. If our actual drilling and development
costs are significantly more than our estimated costs, we may not be able to continue our operations as proposed and could be forced to
modify our operating and/or drilling plans accordingly.

If we decide to drill a certain
location, there is a risk that no commercially productive oil or natural gas reservoirs will be found or produced. We may recomplete
existing wells, drill new wells, or participate in new wells that are not productive. We may drill wells that are productive, but that
do not produce sufficient net revenues to return a profit after drilling, operating and other costs. There is no way to predict in advance
with absolute certainty whether any particular location will yield oil or natural gas in sufficient quantities to recover exploration,
drilling or completion costs or to be economically viable. Even if sufficient amounts of oil or natural gas exist, we may damage
the potentially productive hydrocarbon-bearing formation or experience mechanical difficulties while drilling or completing the well,
resulting in a reduction in production and reserves from the well or abandonment of the well.

7 

The Company has no
proven oil and gas reserves, and future wells we drill may not yield oil or natural gas in commercial quantities or at all.

None of the Company’s properties have been evaluated
for oil and gas reserves, and the Company has no proven reserves. There is no guarantee the Company’s properties contain sufficient
recoverable oil and natural gas to be produced profitably, which may result in a loss of some or all of our investment in such projects.
If