Zion Oil Announces Rights Offering
January 29, 2009 by admin · 7 Comments
Zion Oil & Gas (NYSE Alternext US: ZN) announced today that it has filed for a rights offering with the SEC. Under the terms of the offering Zion shareholders will receive (3) subscription rights for every (8) shares of common stock held. Each subscription right entitles the holder to buy one additional share of common stock at $5.00. For example, if a shareholder currently holds 1,000 shares of Zion Oil common stock, the shareholder would receive 375 subscription rights, or the right to buy 375 additional shares of common stock at $5.00. As I write this post, Zion Oil & Gas shares are at $8.81. That same shareholder, if he or she exercised his or her subscription right, 375 share would cost the share holder $1875, assuming today’s market price of $8.81, those 375 shares would be worth $3,303.75; a gain of $1428.75 with the stroke of a pen. Not a lot of hand wringing over that one.
Here’s Zion’s announcement:
ZION OIL ANNOUNCES RIGHTS OFFERING
Dallas, Texas and Caesarea, Israel – January 29, 2009 – Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced today that it has filed a registration statement with the Securities and Exchange Commission with respect to a proposed rights offering to its common stockholders of up to 4.2 million shares of common stock. Each whole subscription right will entitle the holder to purchase one share of common stock for $5.00.
Under the proposed rights offering, stockholders will receive three (3) subscription rights for every eight (8) shares of common stock owned on the record date. This is identical to 0.375 subscription rights for each share of common stock owned on the record date.
Should the rights offering be fully subscribed, the company expects to receive gross proceeds of $21 million. The proceeds from the rights offering will be used for Zion’s multi-well drilling plan.
Stockholders who fully exercise their rights will be entitled to subscribe for additional shares of common stock, if available, that were not subscribed for by other rights holders.
The record, commencement and initial expiration dates for the offering will be determined at the time that the registration statement relating to the rights offering becomes effective.
A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.
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 and the gross proceeds of the rights offering, 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’s homepage may be found 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
Zion Oil Announces Drilling Delay
January 28, 2009 by admin · Leave a Comment
Zion Oil & Gas CEO Richard Rinberg announced to shareholders and interested parties today that drilling at the Ma’anit Rehoboth #2 well site would be delayed until March due to permitting hold-ups for AME’s drilling crew. According to Rinberg, the permitting delays were not helped by Israel’s focus on the recent war in Gaza, but at this time only a few ” ‘purely bureaucratic’ problems” remain. All other necessary support equipment and supplies seems to be on track and should be awaiting the rig’s arrival in March.
The Rinberg letter to Zion shareholders and ‘friends’ is below:
Dear Shareholder and/or Friend of Zion
In 1785, the Scottish poet, Robert Burns, wrote “The best-laid schemes o’ mice an’ men gang aft agley” or in English, “The best-laid plans of mice and men often go awry”.
That’s just another way of saying that no matter how carefully a project is planned, the unexpected may still delay you.
Earlier this month, during the (unexpected) war in Gaza, I emailed you an update of our scheduled drilling operations. As the Gaza military operations have now abated, I want to give you further revised information.
(1) The 2,000 horsepower drilling rig is in Ankara, Turkey and is now expected to arrive in Israel, rig-up and start drilling our well in March 2009. The main delay has been due to slow progress in obtaining the Turkish rig-workers’ permits. You will appreciate that for the last few weeks this has not been the State of Israel’s top priority. There were also delays due to a requirement that every rig-worker have a passport valid for over three years and that every worker personally visit Israel’s consulate in Turkey, (this last item was subsequently waived). However, we are now making good progress and expect a speedy resolution of all these ‘purely bureaucratic’ problems very soon.
(2) The Drill Pipe being shipped from China arrived at Haifa Port today (Wednesday, January 28, 2009).
(3) The Cement and Chemicals for the Mud will be delivered, at our request, when we are ready. Some of the material is already in Israel and for the remainder the order lead time is short. We do not want to store these materials at our site for longer than absolutely necessary.
(4) We have already received three Drilling Bits and are waiting for the rest of our consignment order to arrive. However, the Drilling Bits we have in store will enable us to drill to over 11,000 feet, so we are not concerned regarding Drilling Bits.
(5) We still have in secure storage, in Israel, over $1.7 million worth of drill casing and other inventory items.
My last email during the war in Gaza was approximately three weeks ago. Since then, military operations in Gaza have ended, the USA has sworn-in a new President and there has been the discovery of a huge natural gas field, offshore the coast of Israel (90 kilometers west of Haifa).
As we all know, a lot can happen in a very short period. So, we will just keep moving forward to our goal… of finding and recovering oil and gas, onshore in Israel.
“In your good pleasure, make Zion prosper…” Psalm 51:18
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas Inc
www.zionoil.com
FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, potential results thereof and potential effects of those results, including the importation of a drilling rig into Israel, the granting of various required permit, are forward-looking statements as defined in the “Safe Harbor” provision 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 Prospectus and its 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 Raises $6.6 Million+ in Public Offering
Zion CEO Richard Rinberg (left) with drilling team
Zion Oil & Gas announced results of it’s latest public offering today. The offering included three closing dates and amounts totaling $6,663,430. Capital raise in the offering will finance drilling the Ma’anit Rehoboth #2 well in Northern Israel. Zion’s press release is below:
Zion Oil Issues Units in Third and Final Closing of Follow-on Offering
Dallas, Texas and Caesarea, Israel – January 21, 2009 – Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced today that the company will issue 249,039 units in the third and final closing of Zion’s follow-on offering. Each unit consists of one share of Zion stock and one warrant to purchase one share of Zion stock. The units were issued at $10 per unit and the amount raised in this closing was $2,490,390, of which $2,364,640 was for cash, $120,000 was for debt conversion of deferred salary due to two officers of Zion and $5,750 was in settlement of fees due to two service providers.
In the initial and second closings of this offering, held on October 24 and December 2 2008, Zion issued 417,204 units, raising gross proceeds of $4,172,040.
In total, Zion raised from its follow-on offering, which ended on January 9, 2009, gross proceeds of $6,663,430, of which $6,417,680 was for cash, $240,000 was debt conversion related to the deferred salary due to two officers of Zion and $5,750 was in settlement of fees due to two service providers. In respect of the total amount raised, Zion issued 666,343 Units
Zion’s Chief Executive Officer, Richard Rinberg, said today, ” With the funds raised in this offering, we now eagerly await the arrival of the 2,000 horsepower drilling rig and the drilling of Zion’s second well, on our Joseph License, to the Triassic Formation (down to a depth of 15,400 feet) and then, we plan, to the Permian Formation (down to a depth below 18,000 feet).”
Zion’s common stock trades on the NYSE Alternext US under the symbol “ZN“. On February 9, 2009, each unit will separate into its component share and warrant, and each of the shares and the warrants will trade separately, with the warrant trading under the symbol “ZN.WS“.
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 and the granting of various required permits, 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’s homepage may be found 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
Expect Stock Surge in US Oil and Gas Companies Exploring in Israel
January 18, 2009 by admin · 4 Comments
Noble Israel Based Offshore Drilling Rig
Israeli energy stocks surged today (see http://www.oilinisrael.net/oil-in-israel-articles/israel-energy-stocks-surge-on-large-gas-find)based on Noble Energy’s announcement of a discovery off the Haifa Coast of over three trillion cubic feet of natural gas.
Noble Energy (NBL, NYSE) who announced the discovery and Zion Oil (ZN, AMEX), both public companies trading on American Markets, and both involved in Israeli energy exploration, should experience similar stock surges on Monday when US markets open.
Zion Oil's License Area Near Natural Gas Discovery
Israel energy stocks surge on large gas find
January 18, 2009 by admin · Leave a Comment
JERUSALEM, Jan 1 8 (Reuters) – Shares of Israeli energy companies soared on Sunday after an exploration group led by Noble Energy (NBL.N) said it discovered more than 3 trillion cubic feet of natural gas off Israel’s Mediterranean coast.
Among Israeli partners in the Yam Thetis consortium, Isramco (ISRAp.TA), with a 28.75 percent stake, led gainers with a nearly 130 percent surge.
Delek Drilling (DEDRp.TA), which holds 15.625 percent of the group, jumped 48 percent, while Avner Oil Exploration, also with a 15.625 percent stake, (AVNRp.TA) was up 36 percent.
Delek’s parent, Delek Group (DELKG.TA), rose 54 percent.
Overall, the blue-chip Tel Aviv 25 index .TA25 was up 2.6 percent, while the broader TA-100 .TA100 was 3.7 percent higher at midday.
(Reporting by Steven Scheer; editing by John Stonestreet)
Israel Discovers Huge Natural Gas Field
January 18, 2009 by admin · 7 Comments
“They shall call the people unto the mountain; there they shall offer sacrifices of righteousness: for they shall suck of the abundance of the seas, and of treasures hid in the sand.”
(Deuteronomy 33:19)
Noble Energy (see my earlier post: http://www.oilinisrael.net/oil-in-israel-articles/more-detail-about-the-haifa-offshore-gas-exploration) has discovered “three massive gas fields” just off the coast of Haifa. This field is much richer, the natural gas reservoirs much larger than Noble energy expected. This find alone could be enough natural gas to power Israel’s electrical plants and supply it’s commercial and domestic natrual gas needs for the foreseeable future – and still with enough for export to other countries. Yitzhak Tshuva, owner of the Delek Group Ltd, a partner in the Tamar #1 well, called the discovery “one of the biggest in the world,” promising that the find would present a historic land mark in the economic independence of Israel.
The Jerusalem Post and many other news organizations announced the discovery to the people of Israel and to the world this morning. Below are excerpts of the JP article you can read it in its entirety at http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=1232265973374.
Jerusalem Post Sunday January 18, 2009
Three massive gas reservoirs have been discovered 80 kilometers off the Haifa coast, at the Tamar prospect, Noble Energy Inc. announced on Sunday.
The Tamar -1 well, located in approximately 5,500 feet of water, was drilled to a total depth of 16,076 feet. The thickness and quality of the reservoirs found were greater than anticipated at the location.
Charles D. Davidson, Noble Energy’s chairman, president and CEO, said in an announcement that his company was “extremely excited by the results. This is one of the most significant prospects that we have ever tested and appears to be the largest discovery in the company’s history.”
Speaking on Army Radio Sunday morning, an exhilarated Yitzhak Tshuva, owner of the Delek Group Ltd, one of the owners of the well, called the discovery “one of the biggest in the world,” promising that the find would present a historic land mark in the economic independence of Israel.
“I have no doubt that this is a holiday for the State of Israel. We will no longer be dependent [on foreign sources] for our gas, and will even export. We are dealing with inconceivably huge quantities; Israel now has a solution for the future generations,” Tshuva added.
An ecstatic Infrastructures Minister Binyamin Ben-Eliezer said before the weekly cabinet meeting that the discovery was a “historic” one and could “change the face of Israeli industry.”
Production testing at Tamar will be performed after the well is completed. Noble Energy and its partners may keep the rig to drill up to two additional wells in the basin. Pending positive test results, one well could be an appraisal at Tamar.
Noble Energy operates the well with a 36 percent working interest. Other interest owners in the well are Israeli companies Isramco Negev 2, Delek Drilling, Avner Oil Exploration and Dor Gas Exploration.
Following the announcement of the discover, shares of Delek Drilling jumped up 80%, while shares of Isramco Negev 2 skyrocketed by an unprecedented 120 percent.
Zion Oil Announces VanBrauman and Green as New Officers
January 12, 2009 by admin · Leave a Comment
Zion Oil & Gas, Inc.announced today that, effective February 1, 2009, Martin VanBrauman will become Zion’s Chief Legal Officer and Sandra Green will become Zion’s Chief Financial Officer. Martin and Sandra both have a history of quality performance and the highest regard of those closest to Zion, both inside and outside the company. This move to install VanBrauman and Green as officers continues to prove out Zion’s management and ethical strength.
Congratulations to both new officers. Here’s the Zion announcement:
Zion Oil Announces Management Restructuring
Zion Oil Announces Management RestructuringDALLAS & CAESAREA, IsraelTX-ZION-OIL-&-GAS
Mr. Van Brauman holds a B.E. degree from Vanderbilt University, a Doctor of Jurisprudence degree from St. Mary’s University and an M.B.A. (Beta Gamma Sigma) and LL.M. (Tax Law), from Southern Methodist University and has over 22 years of experience in corporate tax and accounting analysis. Mr. Van Brauman, Board Certified in Tax Law by the Texas Board of Legal Specialization, is currently Zion’s Chief Financial Officer, a post he has held since July 2007. He spent 12 years as a Senior Attorney (International Specialist and Petroleum Industry Specialist) with the Office of Chief Counsel, IRS, providing legal support for complex issues concerning major U.S. oil companies and the preparation of requests for Technical Advice Memoranda for the Petroleum Industry Group, following which he spent three years as a tax consultant with the global accounting firms of Deloitte & Touche and Grant Thornton and then in private practice with over three years as a member in the law firm of Gibson, Wiley, Cho & Van Brauman, PLLC.
Ms. Green has been Chief Accounting Officer of Zion since July 2007, Assistant Treasurer since November 2006, Director of Planning since March 2005 and Assistant Secretary since December 2005. Ms. Green holds a Bachelors Degree in Business Administration from the University of Texas at Tyler and has over 17 years experience in corporate accounting. Ms. Green is a Certified Public Accountant in the State of Texas.
Zion’s Chief Executive Officer, Richard Rinberg, said today that “The appointment of Martin M. Van Brauman as Chief Legal Officer and Sandra Green as Chief Financial Officer is a strategic repositioning of Zion?s management team. By dynamically redefining the roles within our management team, we continue to improve the total management contribution to Zion.”
Zion?s common stock trades on the NYSE Alternext US under the symbol ?ZN? and Zion?s units will trade under the symbol ?ZN.U?.
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, 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?s homepage may be found at: www.zionoil.com
Photos of Zion Oil & Gas Rig in Turkey
January 8, 2009 by admin · 3 Comments
Zion Oil & Gas CEO Richard Rinberg contributed these shots of Glen Perry inspecting the AME rig in Ankara, Turkey before disassembly for shipment to the Ma’anit-Rehoboth #2 well site in Northern Israel.
Zion Stock Trading Over $8.00
January 7, 2009 by admin · 3 Comments
Zion stock (AMEX ticker symbol ZN) closed at $7.06 yesterday. Today it has been trading between $7.10 and $8.71.
It’s miraculous that Zion has successfully raised capital in its second public offering and its existing shares have increased in value – in the midst of the current world economic meltdown and war in the Gaza strip. All from an oil company that has yet to produce any oil! That may change soon; Zion is scheduled to be drilling at the Ma’anit-Rehoboth site next month.
Keep an eye on the stock. I’ll make an effort to bring you photos of the rig and the drilling site, as well as updates as they happen
Supporting Israel’s Military Action in Gaza
January 5, 2009 by admin · 3 Comments
I’ve had some e-mails asking if the war in Gaza is a threat to Israel’s oil and gas exploration. The current on-shore efforts by Zion Oil & Gas in the north and Ginko in the Dead Sea region aren’t near enough to Gaza to be under any immediate threat related to this action. Off-shore gas exploration in the north isn’t affected for the same reason. And the long-term stability of gas fields off the coast of Gaza could only be improved by Israel ousting Hamas and working toward a sustainable peace in Gaza. Everybody, including British Gas, who works the field, Egypt, Gaza’s (and Israel’s) neighbor to the south and Palestinian Authority President, Mahmoud Abbas agree on that one. So ‘does the current action in Gaza put oil and gas exploration and production in Israel at risk?’ The quick answer is ‘no,’ I don’t think so.
But everything is relative. Israel isn’t a very big country. Geographically it’s a little smaller than New Jersey and it’s population (a little over 7 million) is smaller than New Jersey’s (almost 9 million). Imagine New Jersey as an independent country surround by enemies and with a war on one of its borders. Israel is always under a potential threat from at least one of its neighbors and any military action anywhere in the country is going to affect the country and its people as a whole.
My friend, Richard Rinberg, CEO of Zion Oil, has two children in the Israeli military. Thankfully they are not at the tip of the spear in this current action, but many of the Rinberg family friends are. If you’re an Israeli, you’re affected by what’s happening in Gaza; it’s inescapable.
But, again, everything is relative. What’s also inescapable is the history of Israel’s greatest ally standing at her side. The US has stood by Israel since her re-birth in 1948. But I’m not talking about the US; Israel has a much older, much greater ally. Israel’s greatest military leader penned these words a long time ago: “May the Lord answer you when you are in distress; may the name of the G_d of Jacob protect you.”
He also reminded the Israeli people where to place their trust in national emergencies: “Some trust in chariots and some in horses, but we trust in the name of the Lord our G_d.” Israel’s king David was the leader who penned those words. You can read them in Psalm 20. If you want to say a prayer for Israel today, Psalm 20 is a good one.
As far as Israel’s oil is concerned? Israel’s G_d has that in hand as well.
