Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 368

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 12
Chunk 368
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DC and commenced some work on the well and was planning to conduct a recompletion, though
weather conditions made it too dangerous to proceed. Plans were also underway for the operator to commence repairing or possibly
replacing the plunger lift systems of some of the wells, with the goal of dewatering the wells to enable the gas to flow freely. The joint
venture partners have deferred pursuing this active rework activity during the current downturn in natural gas pricing or until additional
capital is available.

In July 2022, a hydrocarbon
survey was conducted across these leases utilizing a third party patented remote sensing technology, which has provided the operator with
valuable data in charting the potential for the future development of this project. There is also space to drill new gas wells on the
3,840 acre leasehold, using the hydrocarbon mapping as a tool to locate the optimal drilling locations in these reservoirs. 

In the fiscal year ended
June 30, 2025, lease operating expenditures were $21,506 with additional gas fees, transportation and taxes aggregating $691. The
operator believes with additional capital expenditures for reworking and recompletion efforts it can optimize the production
potential of this field. The application of newer technologies could also have an important impact on the economics for this asset.

5.       IMPAIRMENT
OF OIL AND GAS PROPERTIES

During the year ended June 30, 2025, the Company reviewed
the capitalized value of its oil and gas properties and conducted a test to determine the current fair value and if any impairment of
the capitalized values was necessary. As a result of this test, the Company determined that the capitalized value exceeded the current
fair value. For the year ended June 30, 2025, an impairment charge of $167,003 (year ended June 30, 2024 - $401,858) was recorded as an
expense.

6.        REVENUES
AND COST OF REVENUES 

For the year ended June 30, 2025, the Company had
production revenue of $22,180 compared to revenue of $42,543 for the year ended June 30, 2024. Refer to the table below of production
and revenue through June 30, 2025. For the years ended June 30, 2025 and June 30, 2024 our cost of revenue, consisting of lease operating
expenses and