Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 296

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 296
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OKMIN RESOURCES INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

1.        ORGANIZATION AND NATURE OF OPERATIONS

Business description

Okmin Resources, Inc. (collectively with its subsidiaries,
“Okmin” or the “Company”) was incorporated in Nevada in December 2020 to engage in the business of the acquisition,
exploration and development of oil and gas properties, mineral rights, and other natural resource assets.

Okmin has been focused on the acquisition and development
of domestic oil and gas fields and investing in lower profile rework and recompletion opportunities with lower entry costs. The Company's
initial projects are located in Oklahoma and Kansas. 

The Company has two wholly owned subsidiaries that
conduct oil and gas activities: Okmin Operations, LLC, organized on May 25, 2021 in the State of Kansas, and Okmin Energy LLC, organized
on November 21, 2021 in the State of Oklahoma.

The Company has an interest in three separate projects:

    1)
    A 72.5% Net Revenue Interest in the Vitt oil lease located in Neosho County, Kansas

    2)
    A 10% overriding royalty interest in West Sheppard Pool, a natural gas project in Northeast Oklahoma

    3)
    A 95% Joint Venture interest in Pushmataha, a natural gas project in Southeast Oklahoma

Subsequent to the end of its fiscal year ended June
30, 2025, the Company disposed of its entire interest in the Blackrock JV for consideration of $25,000 cash and an additional 45% interest
in the Pushmataha joint venture. This transaction increased the Company’s interest in Pushmataha from 50% to 95%.

The Company has not conducted any reserve evaluations
or calculations, and there are currently no proven reserves on any of the Company’s properties.

The Company’s activities are subject to significant
risks and uncertainties, including failing to secure additional funding to advance the Company’s current plan to rework and possibly
develop its existing projects and to identify and acquire new projects.

The Company’s fiscal year end is June 30.

2.        SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

Basis of Presentation

The Company maintains its accounts on the accrual
method of accounting