Material Event Form 8 K

Item 8.01 Other Events.

The drill pipe has separated and a section of it (the "fish") dropped near the bottom of the hole, which needs to be recovered. The specialized tools will be shipped to Israel, clear Israeli customs and be transported to the rig site. The ongoing conflict in the region has impacted shipping routes, the timely arrival of necessary equipment and created travel difficulties for the rig crews.

Our rig crews, largely from Hungary and Romania, have worked on our I-35 rig since its manufacture and are very knowledgeable and efficient with its operation. Some of our crew members have already been on-site for 80 consecutive days, which requires us to reset visas.

The one-year anniversary of the October 7th attacks marks a particularly sensitive period, especially given the ongoing war being fought on several fronts, and the emotional weight this date carries for Israel, alongside the High Holy Days of Rosh HaShanah, Yom Kippur, Sukkot, and Simchat Torah.

In light of the combination of downhole, logistical, and crew challenges, as well as holidays, and the one-year remembrance of October 7, we have temporarily paused active operations. This is a necessary step to ensure the safety of our personnel and the integrity of the wellbore. We anticipate that once we have the necessary tools and renewed visas for our crews, we can resume operations in Q4 2024. This is, of course, all subject to the realities of the present geopolitical environment. The conflict in Israel, while not directly affecting our operations on a daily basis, creates uncertainties that could affect our schedule at any time. We remain optimistic that we can resolve our current issues, and we remain committed to moving our project forward as quickly and safely as possible. We will continue to provide updates as new, significant developments arise.