|Dear Shareholder and/or Friend of Zion…
Drilling Operations on the Ma’anit-Rehoboth #2 Well
In previous emails, I have highlighted the 2,000 horsepower drilling rig and rig crews, from Turkey, the 5-person directional drilling team from Italy and our drilling supervisor from Texas. Continuing with the theme of the equipment and people involved in drilling our well, this week I would like to bring into the limelight Zion’s mud logging unit and also one of Zion’s geologists, Aaron Kahn.
Aaron is from Columbus, Ohio and qualified as a Geologist at the School of Earth Sciences, Ohio State University. He is a member of the American Institute of Professional Geologists, the American Geophysical Union and the Israel Geological Society. Aaron lives in Israel and is currently in charge of our mud logging unit. He studied Well Log Analysis at the Colorado School of Mines and Mud Logging in Houston, Texas. The photograph above, taken last week, shows Aaron in the mud logging unit, next to the drilling rig, at the Ma’anit-Rehoboth #2 drilling site.
During the drilling of a well, a drilling fluid, called ‘drilling mud’, is used. The drilling mud consists of water and bentonite (a type of clay that will stay suspended in water) together with some (non-toxic) chemicals.
The drilling mud is stored in mud tanks on the ground beside the rig and using mud pumps, the mud is pumped through the drill string where it sprays out of nozzles in the drill bit, cleaning and cooling the drill bit in the process. The mud then carries the rock “cuttings” up to the surface where the cuttings are then filtered out and the mud returns to the mud pits.
The drilling mud not only cools and lubricates the drill bit and removes rock cuttings from the well, but also controls the formation pressures and powers the downhole motor.
The mud logging unit is a mobile laboratory at the well site and contains the scientific equipment required to examine drill cuttings under a microscope and produce a ‘mud log’, (a compilation of the drilling parameters and description of the well cuttings including any traces of gas and oil, as the well is being drilled).
After the drilling phase, the mud log can be used, along with the other scientific data, to help with appraisal and evaluation of the well.
Drilling Progress Report
Here is (weekly) Progress Report #4, for the week ended Thursday, June 4, 2009. The Report is from Zion’s President and Chief Operating Officer, Glen Perry.
“As I mentioned last week, the remaining drilling operations on the Ma’anit-Rehoboth #2 well can be divided into five steps:
(1) Drilling directionally into the Triassic formation, a depth of approximately 15,400 feet (4,750 meters).
(2) Appraisal and evaluation of the Triassic formation using electrical wireline well logs.
(3) Setting and cementing casing at that depth.
(4) Drilling deeper to the Permian formation, a depth of approximately 18,000 feet (5,500 meters).
(5) Appraisal and evaluation of the Permian formation using electrical wireline well logs.
This past week we have continued drilling towards our Triassic formation target. We have now reached a depth of approximately 12,630 feet (3,850 meters).
The drilling is going very well indeed. To date, our maximum drilling rate has been approximately 35 feet (10.7 meters) per hour and we have been averaging approximately 15 feet (4.6 meters) per hour.
Our ability to reach the deep Permian formation is dependent on us raising further funds, so we are holding a 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.
Please be aware that the rights offering is set to expire on June 10, 2009. Although we may, at our discretion, extend that expiration date, if you do want to exercise your rights before they expire, don’t wait until it is too late.
Finally, if you have received a Proxy voting form, it would help us if you would vote. You can vote by internet, by telephone or by mailing the completed form, so please take two minutes and make your vote count.
Psalm 51:18 – In your good pleasure, make Zion prosper…
Thank you for your continued support of Zion, and
Shalom from Israel
CEO of Zion Oil & Gas, Inc.