OKMIN Lacks Proven Reserves, Seeks Funding for 2026 Operations

TL;DR

**OKMN is a speculative bet on unproven oil and gas assets, requiring immediate external financing to even cover basic operations.**

AI Summary

OKMIN RESOURCES, INC. (OKMN) reported no proven reserves on any of its properties for the fiscal year ended June 30, 2025, indicating a pre-revenue or early-stage exploration phase. The company, incorporated in Nevada in December 2020, focuses on acquiring, exploring, and developing oil and gas properties in Oklahoma and Kansas. Subsequent to the fiscal year end, OKMN disposed of its entire interest in the Blackrock JV for $25,000 cash and an additional 45% interest in the Pushmataha joint venture, increasing its stake from 50% to 95%. OKMN holds a 72.5% Net Revenue Interest in the Vitt oil lease in Neosho County, Kansas, a 10% overriding royalty interest in West Sheppard Pool in Northeast Oklahoma, and a 95% Joint Venture interest in Pushmataha in Southeast Oklahoma. The company anticipates cash needs of approximately $270,000 for general corporate overhead and existing lease operations in fiscal year 2026, requiring additional financing through debt or private sales of securities. No research and development expenditures were incurred in the past two fiscal years, and the company's insurance coverage is limited.

Why It Matters

OKMIN's 10-K reveals a company in the very early stages of resource development, with no proven reserves and a stated need for significant additional financing for its fiscal 2026 operations. This is critical for investors as it signals high risk and a reliance on future capital raises, which may dilute existing shareholders. For employees and customers, the lack of proven reserves and operational funding challenges suggest an unstable future. In a competitive energy market, OKMIN's limited insurance and dependence on external operators for technical expertise further highlight its precarious position compared to established players.

Risk Assessment

Risk Level: high — The risk level is high because OKMIN RESOURCES, INC. explicitly states, 'The Company has not conducted any reserve evaluations or calculations, and there are currently no proven reserves on any of the Company's properties.' This indicates a lack of commercially viable assets. Furthermore, the company anticipates cash needs of approximately $270,000 for fiscal 2026 and states, 'additional financing will be required,' with no assurance of availability, posing a significant going concern risk.

Analyst Insight

Investors should approach OKMIN with extreme caution, recognizing it as a highly speculative venture with no proven reserves and an immediate need for external financing. Consider this a 'watch and wait' situation, only investing if significant, verifiable progress on reserve development and secure funding is announced.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• $2,189,096 — Market value of common stock held by non-affiliates (As of December 31, 2024, indicating limited public float.)
• 125,576,035 — Shares of common stock outstanding (As of September 26, 2025, a significant number for a company with no proven reserves.)
• $25,000 — Cash received from Blackrock JV disposal (A small amount for an asset disposal, highlighting limited capital generation.)
• 95% — Joint Venture interest in Pushmataha (Increased from 50% after Blackrock JV disposal, concentrating risk in one project.)
• 72.5% — Net Revenue Interest in Vitt oil lease (Primary interest in a Kansas oil lease, but without proven reserves.)
• $270,000 — Anticipated cash needs for fiscal 2026 (Required for general corporate overhead and existing lease operations, necessitating additional financing.)
• 0 — Proven reserves (The company has no proven reserves on any of its properties, a critical indicator of early-stage and high-risk operations.)

Key Players & Entities

• OKMIN RESOURCES, INC. (company) — Registrant
• Nevada (regulator) — State of incorporation
• Oklahoma (company) — Location of oil and gas projects
• Kansas (company) — Location of oil and gas projects
• Okmin Operations, LLC (company) — Wholly owned subsidiary
• Okmin Energy LLC (company) — Wholly owned subsidiary
• $25,000 (dollar_amount) — Cash consideration for Blackrock JV disposal
• $270,000 (dollar_amount) — Anticipated cash needs for fiscal 2026
• June 30, 2025 (date) — Fiscal year end
• December 31, 2024 (date) — Market value of common stock held by non-affiliates

FAQ

Risk Factors

• Inability to Secure Sufficient Funding [high — financial]: The company anticipates cash needs of approximately $270,000 for fiscal year 2026 for general corporate overhead and existing lease operations. This amount excludes potential funding for workovers, re-entries, or recompletions. The company's current cash position is insufficient, necessitating additional financing through debt or private sales of securities, with no assurance of availability on acceptable terms.
• Volatility in Oil and Natural Gas Prices [high — market]: Fluctuations in oil and natural gas prices can negatively impact operating cash flow. Significant declines could lead to ceiling test write-downs on oil and natural gas assets, further straining financial resources.
• Exploration and Development Risks [high — operational]: The company engages in exploration and development activities, which carry the inherent risk of failing to discover oil and natural gas in sufficient commercial quantities to provide a reasonable return on investment. The company currently has no proven reserves on any of its properties.
• Adverse Regulatory or Legislative Actions [medium — regulatory]: The oil and natural gas industry may be subject to new adverse regulatory or legislative actions. This includes potential changes to existing tax rules and regulations, as well as environmental regulations, which could impact operations and profitability.
• Competition for Acreage and Services [medium — operational]: Competition in acquiring interests in existing properties and new acreage with other operating companies can result in less favorable terms or fewer opportunities. Additionally, competition for drilling and completion services, along with potential shortages of labor and materials, can lead to higher costs.
• Disruptions from External Events [medium — operational]: Unanticipated weather events, natural disasters, and public health crises can cause delays in drilling and completions, interrupting anticipated production streams and impacting expenses and revenues.
• Dilution from Future Offerings [medium — financial]: The company's need for additional capital to fund operations and growth may lead to future equity or debt offerings, which could result in dilution for existing shareholders.
• Lack of Effective Internal Controls [low — financial]: The company acknowledges a lack of effective disclosure controls and procedures and internal control over financial reporting, which increases the risk of errors or misstatements in financial reporting.

Industry Context

OKMIN RESOURCES, INC. operates in the highly competitive and capital-intensive oil and gas exploration and development sector. The industry is characterized by significant price volatility for crude oil and natural gas, driven by global supply and demand dynamics, geopolitical events, and economic conditions. Companies in this space face ongoing challenges related to regulatory changes, environmental concerns, and the need for continuous technological advancement to improve extraction efficiency and reduce costs.

Regulatory Implications

The oil and gas industry is subject to extensive federal, state, and local regulations concerning environmental protection, drilling operations, and land use. Changes in tax laws, environmental standards, or permitting requirements could significantly impact OKMN's operational costs and the economic viability of its projects. The company's lack of proven reserves and early-stage development status may also subject it to stricter scrutiny regarding exploration plans and environmental impact assessments.

What Investors Should Do

1. Monitor financing activities closely.
2. Assess the risk/reward of the Pushmataha JV.
3. Evaluate the impact of commodity price volatility.
4. Consider the implications of no proven reserves.

Key Dates

• 2020-12-01: Company Incorporated — Marks the official establishment of OKMIN RESOURCES, INC. as a Nevada-based entity focused on oil and gas acquisition and development.
• 2025-06-30: Fiscal Year End — The reporting period for which the 10-K provides financial and operational details, including the absence of proven reserves.
• 2025-07-01: Disposal of Blackrock JV Interest — Subsequent to the fiscal year end, the company divested its Blackrock JV interest for $25,000 cash and increased its Pushmataha JV stake to 95%, consolidating its focus but also concentrating risk.

Glossary

Net Revenue Interest (NRI)

The percentage of revenue from oil and gas production that a working interest owner is entitled to receive after the deduction of royalties and other non-operating burdens. (OKMN holds a 72.5% NRI in the Vitt oil lease, indicating its share of potential future revenue from this property.)

Overriding Royalty Interest (ORRI)

A non-operating interest in the oil and gas produced from a specific property, which is separate from and in addition to the landowner's royalty. It is typically carved out of the working interest. (OKMN holds a 10% ORRI in the West Sheppard Pool, representing a passive revenue stream without operational responsibilities.)

Joint Venture (JV) interest

An arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project. In oil and gas, this often involves sharing the costs and risks of exploration and development. (OKMN has a 95% JV interest in the Pushmataha project, indicating significant operational control and financial exposure to this natural gas project.)

Proven Reserves

Estimates of quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. (The absence of proven reserves for OKMN is a critical indicator of its early-stage, high-risk exploration phase and lack of established production.)

Ceiling Test

A method used in accounting for oil and gas companies to limit the carrying value of proved oil and gas reserves to their estimated future net revenues, discounted at a specified rate. If future net revenues are less than the book value, an impairment write-down is required. (Volatility in oil and gas prices could trigger ceiling test write-downs, impacting the reported value of the company's assets.)

Year-Over-Year Comparison

Information comparing key metrics to the previous year's filing is not available in the provided text. The 10-K focuses on the fiscal year ended June 30, 2025, and subsequent events. Key developments include the disposal of the Blackrock JV and an increased stake in the Pushmataha JV. The company's financial position and operational status remain indicative of an early-stage exploration company with no proven reserves and a significant need for future financing.

Key Financial Figures

• $0.0001 — Exchange Act: Common Stock, par value $0.0001 per share (Title of class) Indicate
• $25,000 — n the Blackrock JV for consideration of $25,000 cash and an additional 45% interest in
• $270,000 — anticipate cash needs of approximately $270,000 for general corporate overhead and for

Filing Documents

• okmin_10k.htm (10-K) — 879KB
• ex31x1.htm (EX-31.1) — 7KB
• ex31x2.htm (EX-31.2) — 7KB
• ex32x1.htm (EX-32.1) — 3KB
• ex32x2.htm (EX-32.2) — 3KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001079973-25-001512.txt ( ) — 3692KB
• okmin-20250630.xsd (EX-101.SCH) — 27KB
• okmin-20250630_cal.xml (EX-101.CAL) — 34KB
• okmin-20250630_def.xml (EX-101.DEF) — 87KB
• okmin-20250630_lab.xml (EX-101.LAB) — 250KB
• okmin-20250630_pre.xml (EX-101.PRE) — 209KB
• okmin_10k_htm.xml (XML) — 355KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 5 Item 1B Unresolved Staff Comments 18 Item 1C. Cybersecurity 18 Item 2

Properties

Properties 18 Item 3

Legal Proceedings

Legal Proceedings 21 Item 4 Mine Safety Disclosures 21 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 6

Selected Financial Data

Selected Financial Data 23 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 8 Consolidated Financial Statements and Supplementary Data 26 Item 9 Changes In and Disagreements With Accountants On Accounting and Financial Disclosure 26 Item 9A

Controls and Procedures

Controls and Procedures 26 Item 9B Other Information 27 PART III Item 10 Directors, Executive Officers and Corporate Governance 27 Item 11

Executive Compensation

Executive Compensation 29 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 31 Item 13 Certain Relationships and Related Transactions, and Director Independence 31 Item 14 Principal Accountant Fees and Services 32 Item 15 Exhibits 32 PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K (this "Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The forward-looking statements are contained principally in Part I, Item 1. "Business," Part I, Item 1A. "Risk Factors," and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," but are also contained elsewhere in this Annual Report in some cases you can identify forward-looking statements by terminology such as "may", "should", "potential", "continue", "expects", "anticipates", "intends", "plans", "believes", "estimates", and similar expressions. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. You should refer to Item 1A. "Risk Factors" section of this Annual Report for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Annual Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We do not undertake any obligation to update any for

BUSINESS

ITEM 1. BUSINESS. Overview 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, 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. Our business strategy is to enhance the value of our acquired operated assets through evaluation of certain properties with the goal of increasing production. We plan to deploy capital in a strategic manner and pursue value-enhancing transactions and expect to continuously evaluate strategic alternative opportunities that we believe will enhance shareholder value.

Legal Proceedings

Legal Proceedings We are not currently a party to any material legal proceedings. Reports to Security Holders We intend to furnish our shareholders annual reports containing financial statements audited by our independent registered public accounting firm and to make available quarterly reports containing unaudited financial statements for each of the first three quarters of each year. We file Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K with the SEC in order to meet our timely and continuous disclosure requirements. We may also file additional documents with the SEC if they become necessary in the course of our company's operations. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is www.sec.gov.

RISK FACTORS

ITEM 1A. RISK FACTORS. An investment in our common stock involves a high degree of risk. You should carefully consider the following material risk factors as well as all other information set forth or referred to in this report before purchasing shares of our common stock. Summary Risk Factors our ability to obtain sufficient cash flow from operations, borrowing, and/or other sources to fulfill our business plan; volatility in oil and natural gas prices, including further declines in oil prices and/or natural gas prices, which would have a negative impact on operating cash flow and could require further ceiling test write-downs on our oil and natural gas assets; the possibility that the oil and natural gas industry may be subject to new adverse regulatory or legislative actions (including changes to existing tax rules and regulations and changes in environmental regulation); the general risks of exploration and development activities, including the failure to find oil and natural gas in sufficient commercial quantities to provide a reasonable return on investment; future oil and natural gas production rates; environmental risks; availability of pipeline capacity and other means of transporting crude oil and natural gas production, and related midstream infrastructure and services; 5 competition in acquiring interest in existing properties and new acreage with other operating companies, resulting in less favorable terms or fewer opportunities being available; higher drilling and completion costs related to competition for drilling and completion services and shortages of labor and materials; disruptions resulting from unanticipated weather events, natural disasters, and public health crises and pandemics, such as the coronavirus, resulting in possible delays of drilling and completions and the interruption of anticipated production streams of hydrocarbons, which could impact expenses and revenues; our lack of effective disclosure controls

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View this 10-K filing on SEC EDGAR