Dead Sea Oil Discovery
May 30, 2009 by admin · Leave a Comment
Don’t give up on the Dead Sea just yet. Israelis are still exploring for and as of this month discovering oil in that region. This month’s discovery isn’t huge, but it shows, once again, that Israel is not bereft of oil. Here’s the report from Israeli newspaper Haaretz:
By The Associated Press and Haaretz Service
An Israeli company has discovered a small amount of oil at a drilling site near the Dead Sea, raising hopes that Israel could one day join its regional neighbors as a petroleum producer.
Initial tests have found that the site would yield between 100 to 150 barrels daily, said Eli Tannenbaum, geologist for the Ginko oil exploration company.
While this is minuscule by global standards – No. 1 producer Saudi Arabia produces 9 million barrels a day – Tannenbaum said there are signs that larger amounts of crude are nearby.
He said the company also found a hydrocarbon, or oil, trap about 2 kilometers (1.2 miles) north of the original site. “It appears there will also be oil there in much higher quantities,” Tannenbaum said.
Ginko, a private company, will begin drilling in the second location in the coming months, he said.
Ginko abandoned the original drilling site in 1997 when oil prices were about $15-$20 a barrel. It revisited the site recently because oil prices have quadrupled since then, Tannenbaum said.
Energy expert Amir Mor said hundreds of thousands of abandoned oil fields worldwide have been revisited in recent years due to the spike in prices, which can make it profitable to produce even a few hundreds barrels of oil. However, he said, it was unlikely the new Dead Sea location would yield more than a few hundred – possibly a few thousand – barrels a day. Strategically, this is meaningless to Israel – which consumes about 220,000 barrels of oil daily, Mor added.
Israel has produced only 20 million barrels of oil in the last half-century – less than what the Saudis produce every three days.
Zion Drilling Report
May 19, 2009 by admin · 3 Comments
Zion's Ma'anit Rehoboth #2
As promised, here is Zion’s first progress report on the drilling of the Ma’anit Rehoboth #2.
Here is a progress report (#1) regarding the drilling operations, for the 30 days ended Friday, May 15, 2009, from Zion’s President and Chief Operating Officer, Glen Perry:
The drilling operations of the Ma’anit-Rehoboth #2 well can be divided into eight distinct steps:
(2) The setting of a cement plug to allow the hole to be deviated.
(3) ‘Kicking off’ of the plug and establishing both the angle and direction of the deviation.
(4) Drilling directionally into the Triassic formation, a depth of approximately 15,400 feet (4,750 meters).
(5) Appraisal and evaluation of the Triassic formation using electrical wireline well logs.
(6) Setting and cementing casing at that depth.
(7) Drilling deeper to the Permian formation, a depth of approximately 18,000 feet (5,500 meters).
(8) Appraisal and evaluation of the Permian formation using electrical wireline well logs.
During the period covered by this report, we completed steps (1), (2) and (3).
On Friday, May 15, 2009, we went into the hole with directional tools, in order to start the directional drilling operations.
The rig has been operating on a 24 hour basis, utilizing two drilling crews on 12 hour shifts. To date, the work has gone well, with few problems encountered. We are ‘on schedule’.
The members of the Turkish rig crew have been pleasantly surprised with the courteous and helpful attitude that they have received from everyone they have met in Israel. As a direct consequence, their attitude is very positive and they want to do a ‘first class’ job for Zion.
Rights Offering
Anyone who was a stockholder on the record date of May 4, 2009, has the right to purchase some more Zion stock at $5.00 per share of stock.
If you are a stockholder, I hope you will exercise your rights to purchase Zion stock at $5.00 and even consider an over-subscription, as I believe we have arrived at the most exciting stage of Zion’s development and that the offer before you may well never be repeated.
The rights offering is set to expire on June 10, 2009, although we may, at our discretion, extend that expiration date.
Psalm 51:18 – In your good pleasure, make Zion prosper…
Thank you for your continued support of Zion, and
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com
Zion Begins Drilling
May 5, 2009 by admin · 3 Comments
Zion Oil & Gas announced yesterday that drilling operations have begun at the Ma’anit Rehoboth #2 well site.
Drilling Supervisor Jerry Carlisle Directs Final Assembly
Zion will drill down to a depth of 15,400 feet (Triassic), where the Ma’anit #1 was forced to quit in 2005, and then plans to increase to a final depth of more than 18,000, into the Permian, where most of the world’s oil reserves has been discovered.
Ma'anit Rehoboth #2 Well Head, Beneath the Rig Platform
Drilling operations will run 24 hours a day in 12 hour shifts, operated by the AME (Turkey) drilling crew.
AME's 2,000 Horsepower Rig
AME’s 2,000 horsepower drilling is twice the size as the Lapidoth rig used on Zion’s Ma’anit #1 in 2005. The mechanical issues due to rig capacity in 2005 should not be a problem during the Ma’anit Rehoboth #2 well, using the new AME rig.
Even with the new rig, drilling can be slow and expensive. According to Zion COO and President Glen Perry, “Due to the depth and slow bit penetration rates, dry hole drilling costs per well are estimated to be between $7 million and $9.5 million. Completed well costs are estimated to be between $9 million and $11 million.”
The name “Rehoboth” was chosen for the new well from scripture after the decision to abandon the Ma’anit #1 due to mechanical problems. “He moved on from there and dug another well, and no one quarreled over it. He named it Rehoboth, saying, ‘Now the Lord has given us room (Rehoboth means room) and we will flourish in the land.’” (Genesis 26:22)
Below is a gallery of shots taken from the Ma’anit Rehoboth #2 well site.
