Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 1066

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1066
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 rates of return, or actual losses exceed coverage limits. We regularly review our risks of loss and the cost and availability of insurance and revise our insurance program accordingly.

If an event occurs that is not covered by insurance or not fully protected by insured limits, it could have a significant adverse impact on our financial condition, results of operations and cash flows.

      18

We face various risks associated with the trend toward increased activism against oil and gas exploration and development activities.

Opposition toward oil and gas drilling and development activity has been growing globally and is particularly pronounced in Organization for Economic Co-operation and Development (“OECD”) countries which include the U.S., the U.K and Israel. Companies in the oil and gas industry, such as us, are often the target of activist efforts from both individuals and non-governmental organizations regarding environmental compliance and business practices, potential damage to fresh water sources, and safety, among other topics. Future activist efforts could result in the following:

      ● 
      delay or denial of drilling or other exploration permits or licenses; 

      ● 
      shortening of lease terms or reduction in lease size; 

      ● 
      restrictions on installation or operation of gathering or processing facilities; 

      ● 
      restrictions on the use of certain operating practices, such as hydraulic fracturing; 

      ● 
      legal challenges or lawsuits; 

      ● 
      damaging publicity about us; 

      ● 
      increased costs of doing business; 

      ● 
      reduction in demand for our products; and 

      ● 
      other adverse effects on our ability to develop our properties and expand production. 

Our need to incur costs associated with responding to these initiatives or complying with any resulting new legal or regulatory requirements resulting from these activities that are substantial and not adequately provided for, could have a material adverse effect on our business, financial condition and results of operations.

Economic risks may adversely affect our operations and/or inhibit our ability to raise additional capital.

Economically, our operations in Israel may be subject to:

      ● 
      exchange rate fluctuations; 

      ● 
      royalty and tax increases and other risks arising out of Israeli State sovereignty over the mineral rights in Israel and its taxing authority; 

      ● 
      changes in Israel’s economy that could lead to oil and gas price controls; and 

      ● 
      Unavailability of key personnel, services or equipment as a result of the Israel-Hamas war or other regional hostilities. 

      19

Consequently, our operations may be substantially affected by local economic