High Tech Entreprenuer, Nir Barkat, is Jerusalem’s New Mayor

Nir Barkat, 49 years old, has spent his entire life in Jerusalem and served six years in the Israel Defence Force, as a member of the paratrooper’s brigade. In 1988, Nir Barkat founded the BRM Group, one of the first entities worldwide to develop anti-virus software and, as CEO, initiated joint ventures with U.S. companies such that BRM became a technological incubator. At the beginning of 2000, Nir was a founding partner of BRM Capital, a $150 million Venture Capital Fund focusing on software and communication infrastructures, specializing in investments in Israeli related companies and helping them become global leaders in their field.

Zion Oil & Gas Founder, John Brown, met Nir Barkat in Washington, in July 2008, during Christians United for Israel’s Third Annual Washington-Israel Summit, when Zion Oil sponsored the “Night to Honor Israel” banquet.

Exploratory Drilling for Oil in Judean Desert Passes Final Hurdle

Back in August we reported on oil exploration efforts in the Judean Reserve of southern Israel. It looks like the Ginko/Delek/Avner partnership has past a final hurdle with the state of Israel. Environmental concerns on Reserve land have been the primary issue in delaying exploration approval.

Below is the November 6 Jerusalem Post article. The original article can be viewed at http://www.jpost.com/servlet/Satellite?pagename=JPost%2FJPArticle%2FShowFull&cid=1225910056665.

Exploratory drilling for oil in Judean Desert passes final hurdle

The Jerusalem Post November 6, 2008

By EHUD ZION WALDOKS

The Council of National Parks and Nature Reserves on Thursday approved exploratory drilling for oil in the Judean Desert Nature Reserve, where three companies – Ginko Oil Exploration, Delek Energy Systems, and Avner – believe there could be as much as 6.5 million barrels’ worth.

Drilling for oil in the Judean Desert was approved yesterday by the Council of National Parks and Nature Reserves.

The companies believe that Zuk Tamrur 4, just north of Route 31 from Arad to the Dead Sea, is the best chance Israel has to find oil. That many barrels of oil, while not enough to power the country for more than a month, would be worth hundreds of millions of dollars.

Photo: Ariel Jerozolimski

The council’s okay followed approval by the Nature and Parks Authority’s (NPA) Assembly, its highest governing body. The 23-member council advises the Environmental Protection Ministry and the NPA on matters of policy. It includes government, environmental, academic and public representatives.

Ginko director Rami Karmin told The Jerusalem Post Thursday that the drilling, the equipment and environmental requirements would cost between $5 million and $7m.

Hebrew University Institute of Earth Sciences Raymond F. Kravis Professor of Geology (Emeritus) Zvi Garfunkel told the Post Thursday that the fact that oil had been found previously could mean there was more.

“In previous drillings, they found a little bit of oil. Indeed, this is Zuk Tamrur 4. There might be a larger reservoir [around there]. But drilling companies usually keep the results of their surveys private,” he said. “There is no smoke without fire, but how big the smoke is and how big the fire is – only the companies know.”

The Society for the Protection of Nature in Israel (SPNI) vehemently opposed the decision because of its potential impact on the reserve’s fragile ecosystem.

“The state’s institutions are obligated to protect the open spaces, the nature reserves, and most certainly such a special reserve like the Judean Desert, where biodiversity and an ecological system exist almost in their entirety. Therefore we are distressed that this was the decision reached,” Shai Tachnai, SPNI’s southern district coordinator for the preservation of nature, said in a statement.

SPNI quoted the representative of the National Infrastructures Ministry saying at the meeting Thursday morning that there was a 15-percent chance of finding oil below the reserve.

“In the last decade, we have brought about a revolution and turned the Negev and the Judean Desert from a land of quarries to a land of machteshim (erosion craters) and natural attractions. A 15% chance of finding oil does not justify the irreversible damage expected to occur,” Tachnai said.

Regarding that number, Karmin said the companies had never published such an assessment, but “we are optimistic.”

While SPNI protested, the NPA and Environmental Protection Ministry’s representatives voted in favor of the drilling Thursday. During the negotiations for approval from the NPA’s assembly, it was agreed that if oil were found, the pumping would take place from outside the reserve and the companies would rehabilitate any damage caused.

To test for oil, the companies would drill a 2,000-meter hole over 1.25 acres.

Delek Energy Systems and Avner are both controlled by Yitzhak Tshuva.

International Energy Agency Reports a Decline in World Oil Output

London’s Financial Times reported on the International Energy Agency’s “World Energy Outlook”. Petroleum output, according to the agency, is declining. At the same time the world’s demand is increasing. Currently world oil output just meets oil demand. The world won’t feel this energy crunch in the short term due to slowed demand as a result of the current economic crisis. But when demand picks up again oil demand will continue to increase as oil production continues to decrease. Without more investment in oil exploration and opening of new fields supply will fail to meet demand and crude oil prices will once again skyrocket and shortages will become a reality. Israel having a domestic oil supply on line by the time by the time a world economic resurgence hits will have a tremendous impact on the nation’s financial and political future. Now, while world markets are down, is the time for Israel to increase oil and gas exploration and secure its energy future.

Here’s the Financial Times excerpt:

“The FT reports output from the world’s oilfields is declining faster than previously thought, the first authoritative public study of the biggest fields shows. Without extra investment to raise production, the natural annual rate of output decline is 9.1%, the International Energy Agency says in its annual report, the World Energy Outlook, a draft of which has been obtained by the Financial Times. The findings suggest the world will struggle to produce enough oil to make up for steep declines in existing fields, such as those in the North Sea, Russia and Alaska, and meet long-term de­mand. The effort will become even more acute as prices fall and investment decisions are delayed. The IEA, the oil watchdog, forecasts that China, India and other developing countries’ demand will require investments of $360bn each year until 2030. The agency says even with investment, the annual rate of output decline is 6.4 per cent. The decline will not necessarily be felt in the next few years because demand is slowing down, but with the expected slowdown in investment the eventual effect will be magnified, oil executives say”

TomCo Energy reports near doubling of oil-in-place in Heletz Field

Tomco Energy announced the results of a revised TRACS (independent reporting agency) report nearly doubling the estimated Heletz Field oil reserves in southern Israel. In addition to the estimated 94.4 million barrels estimated by TRACS (whose report only included the shallow Cretaceous section), Tomco estimates an additional 100 million barrels of reserves at the lower Jurassic level.

Here is Tomco’s announcement as reported by the UK’s Proactive Investors (http://www.proactiveinvestors.co.uk/companies/news/3549):

TomCo Energy plc (AIM: TOM), the AIM listed oil and gas exploration and production company with investments in the United States and Israel, released an updated independent Reserves and Resource evaluation and audit of the Heletz Field, Israel.

The study, undertaken by TRACS International, (‘TRACS’) reported an mid-case (P50) estimate original oil-in-place for the Heletz Field of 94.4 million barrels, with a range from 52.7 million barrels (P90) to 164.4 million barrels (P10).

Tomco said the revised estimate represented a “significant increase” over the previously quoted figure of 50 million barrels. The additional resource largely emanated from the inclusion of “substantial additional volumes of oil in lower quality carbonate reservoirs” in the Cretaceous reservoir section of the field.

Around 17 million barrels have been produced from the field to date, mainly from the “better quality sandstone reservoirs” in the middle of the Cretaceous reservoir section.

TRACS International additionally calculated a 2P (Proved plus Probable) reserve of 974,000 barrels, of which 720,000 barrels are Undeveloped Reserves.  Tomco and joint venture partner Avenue Energy  will be targeting the undeveloped reserves in their 2009 work over and infill drilling campaign. The 3P (Proved plus Probable plus Possible) upside reserves are 1.87 million barrels. Tomco’s net interest in these reserves is around 35%.

TRACS further identified 3.5 million barrels of 2C Contingent Resources and 8.5 million barrels of 3C Contingent Resources. Approximately 63% are in the Kokhav Dolomite.

Howard Crosby, the Company’s CEO, said: ‘We are very pleased with the TRACS Report with original Oil-in-Place (P50) estimates almost double the figure previously released. It is also our belief that the planned work program for 2009 can significantly increase the proven and probable reserves and the Report also confirms the huge up-side potential that further exploitation can unlock at the Heletz Field.’

Interview Between Pastor John Hagee & John Brown

Interview Between Pastor John Hagee & John Brown Founder of Zion Oil & Gas

ABC Nightline Report on Zion Oil

ABC Nightline Report on Zion Oil

About Zion Oil & Gas

“From its inception, the calling of Zion Oil & Gas has been to assist Israel in the restoration of the Land by finding and producing oil and gas — helping to make the People of Israel politically and economically independent.”

Zion Oil Announces Revised Drilling Schedule

Zion Oil announced today (read the full press release below) that the delivery of the AME drilling rig to Israel will be delayed until January of 2009 due to Israeli government delays in processing AME’s work permits.

According to AME, other than the delay in processing work permits, machinery updating and refurbishment is complete and the drilling rig is sitting in Ankara, ready to ship.

On Zion’s side, completion of the site preparation and final government permissions are underway.

Anyone who has ever built a house knows about delays, like the building inspector not showing up when he’s scheduled. The inspector finally arrives and the house get completed. I don’t think the process changes much as the project’s grow in size.

The bottom line is that the rig is now scheduled to be in Israel in January rather than November, as previously expected. On the positive side, it looks like AME and their drilling equipment is ready to roll and Zion’s site preparations should be complete by the time the rig arrives in January. Pray for progress without further delays. And news of a bit turning in Northern Israel!

Here is Zion’s press release:

 

Zion Oil Updates Drilling Schedule

 Dallas, Texas and Caesarea, Israel- November 7, 2008 – Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced today updated information regarding the status and importation into Israel of the drilling rig and crews contracted for (on September 12, 2008) with Aladdin Middle East Ltd (AME). Under the terms of the contract, AME committed to provide a completely refurbished and updated 2,000 horsepower rig and crews to drill Zion’s planned Ma’anit-Rehoboth #2 well ‘directionally’ to below 18,000 feet.

AME has advised Zion that the drilling rig refurbishment has been successfully completed and that the rig stands ready in Ankara, Turkey. AME have started the process of obtaining Israeli work permits for their crews; however due to the relevant government office in Israel having been closed for most of October, the workers’ permitting process was delayed. It is now anticipated that the rig will be shipped out of Turkey in January 2009.  

Zion has recently received positive notifications on almost all of the required Israeli permits (other than crew work permits) related to the Ma’anit-Rehoboth #2 well and is now working on the location site to prepare it for the arrival of the rig.  

As detailed in its registration statement, Zion is raising funds in order to pursue its planned multi-well drilling program. Depending on actual amounts raised, Zion intends to carry out the following work program: drill Zion’s second well, on Zion’s Joseph License, to the Triassic Formation (down to a depth of 15,400 feet) and / or to the Permian Formation (down to a depth of 18,040 feet), drill a test well on Zion’s Asher-Menashe License to the Triassic Formation and, if appropriate, the Permian Formation and prepare for the drilling of an additional well on either its Joseph or Asher-Menashe License. 

Zion’s common stock trades on the NYSE Alternext US under the symbol ZN. 

Before you invest, for more complete information about Zion Oil & Gas and its offering, you should read Zion’s registration statement (including a prospectus) together with the other documents Zion has filed with the SEC. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas or its underwriter, Brockington Securities, Inc, will arrange to send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). Direct links to the SEC location, or to the documents in PDF, may be found on the home page of Zion Oil & Gas, at www.zionoil.com. 

Zion Oil & Gas, Inc., a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Tel-Aviv and Haifa. It currently holds two petroleum exploration licenses, the Joseph and Asher-Menashe Licenses, between Netanya on the south and Haifa on the north, covering a total of approximately 162,000 acres. 

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s planned operations, potential results thereof and plans contingent thereon, including the importation of a drilling rig into Israel, the granting of various required permits, the selection of potential drilling targets and locations, are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements. 

Zion Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas or its underwriter will arrange to send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). Direct links to the SEC location, or to the documents in PDF, may be found on the home page of Zion Oil & Gas. Inc., at www.zionoil.com. 

Contact:

Brittany Russell

Zion Oil & Gas, Inc.

6510 Abrams Rd., Suite 300

Dallas, TX 75231

(1) 214-221-4610

Email: dallas@zionoil.com