October 24, 2008 Letter From Zion CEO Richard Rinberg
Dear Zion Shareholder and/or Friend of Zion,
On Friday, October 24, 2008, we held an ‘initial closing’ of our current ‘$10 unit’ public offering. (The Press Release is below this letter).
We issued 350,994 units, where:
One Unit = One Share of Zion stock + One Warrant
(The warrant gives a purchaser the right, but not an obligation, to purchase one share of common stock at $7 per share through January 31, 2012).
The initial closing was for subscriptions amounting to US$ 3,509,940, and if you subscribed for units before October 11, 2008, and your subscription documents passed review, then your certificate of units purchased will soon be delivered to you, or deposited into your brokerage account, depending on your instructions when you completed your Subscription Agreement. The units will trade on the New York Stock Exchange Alternext (NYSE Alternext US) under the symbol ZN.U.
For those who have not yet subscribed,
you still have the opportunity available to you,
as our public offer is still open.
At the annual shareholders’ meeting in June 2008, I noted that two of the most talked about subjects in the world are Israel and oil and Zion Oil brings both subjects together.
In January 1999, about 15 months before Zion was founded, the price of a barrel of oil hit a low of just $8 per barrel. In January 2002 oil was trading at $20, in July 2008 the price was over $145 and, as I write the price is approximately $65 per barrel. Watching the oil price fluctuations is rather like being in an elevator with a lunatic at the control panel.
Thankfully, independent of world markets suffering a nervous breakdown or cardiac arrest, Zion’s exceptional team is steadily making progress with our business plan in a calm rational manner.
We continue to raise funds in order to pursue our planned multi-well drilling program in Israel and, depending on the actual amounts raised, we intend to carry out the following work program:
(1) drill our second well, on the Joseph License,
(2) drill a test well on our Asher-Menashe License, and
(3) prepare for the drilling of an additional well on either license.
Recently, the world’s most successful investor, Warren Buffett, wrote an opinion piece in the New York Times. He commented that the time to invest in the stock market was now, when everyone is ‘fearful’ of the future and that: ‘If you wait for the robins, spring will be over’.
But those who trust in the Lord need not be fearful of the future. Warren Buffet’s advice regarding the forward-thinking philosophy of ice hockey great Wayne Gretzky is accurate. Wayne Gretzky said: ‘I skate to where the puck is going to be, not to where it has been.’
In the event of success with our drilling plans, it may seem that the $10 unit price of our offering was a real ‘don’t miss’ opportunity.
If you have already subscribed, thank you for your support. If you have not yet subscribed, please don’t you miss this opportunity.
It is better to take refuge in the LORD than to trust in man. (Psalm 118:8)
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas, Inc.
P.S. Full details of the offer are set out in the Prospectus which is available for download and review on our website www.zionoil.com under “Investor Center” If you would prefer a hard copy of the Prospectus, please call: 1-888-TX1-ZION (1-888-891-9466) or email: dallas@zionoil.com
Zion Oil & Gas Newsletter October 2008
October 17, 2008 by admin · 2 Comments
I received the Zion Oil & Gas Newsletter and the latest press release today. In the middle of a global economic crisis, investors continue to stand behind Zion’s mission of discovering oil in Israel. Zion is moving ahead as scheduled with plans for drilling their second well in November. Pay attention to the lines I put in underline and bold type. Something greater than ‘business as usual’ is going on at Zion Oil.
Here’s the Zion Newsletter and press release from CEO Richard Rinberg:
Dear Zion Shareholder and/or Friend of Zion…
It is difficult to put into words the experience of the last few weeks. We are all living through such a remarkable and dramatic (even traumatic) period in world history. The economy looks and feels ‘broken’ and the healing may prove painful for all of us. However, our trust is only in the Lord and not the stock market! (Jer. 17:7)
In Dallas, we received a phone call from a shareholder who was reviewing their stock portfolio and just had to call us and tell us that all of their retirement stocks were pretty much devastated in value, except one… there was only one steadfast rock in their portfolio – the stock of Zion Oil & Gas had maintained its value.
Shortly after that phone call, a lawyer friend sent me a humorous email, as follows:
’The Best Investment Plan:
If you purchased $1,000 of shares in Delta Airlines one year ago, you have $49 today.
If you purchased $1,000 of shares in AIG one year ago, you have $33 today.
If you purchased $1,000 of shares in Lehman Brothers one year ago, you have $0 today.
But, if you purchased $1,000 worth of beer one year ago, drank all the beer, then turned in the aluminum cans forthe recycling refund, you will have received $214.00.
Based on the above, the best current investment plan is to drink heavily & recycle.’
I sent my friend the following reply:
…and if you had purchased $1,000 of Zion Oil & Gas, Inc. on October 3rd 2007, you would have today $995. So, I disagree with the beer plan… better to go with the Lord’s plan…
During one of the severest stock market collapses in recent decades, our follow-on $10 unit offering was successfully able to reach the minimum subscription by the due date of October 11, 2008. Every day, I watched the tally of subscriptions received. One week before the due date, I commented that if we were able to reach the minimum subscription, it would be a clear miracle from heaven.
On the very last day, we received substantial and completely unexpected subscriptions… and exceeded our required minimum subscription amount.
I was a witness to what happened. I saw the miracle unfold. It was a deeply moving experience.
Although we have announced (see the October 16 Press Release below) a scheduled initial closing on October 21, 2008, our $10 unit offering is still accepting subscriptions. So, it is not too late for you to subscribe and support our work in Israel. We still need both your prayer and financial support.
(I Chron. 29:10-14)
The 2,000 horsepower drilling rig is scheduled to arrive in Israel in November 2008 and we hope that you will want to subscribe for some Zion $10 units, in order to be part of the exploration effort for oil and gas in Israel.
I cannot promise, but I for one will not be surprised if we all see a further miracle in the coming months…
Psalm 51:18 – In your good pleasure, make Zion prosper…
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas, Inc.
P.S. Full details of the offer are set out in the Prospectus which is available for download and review on our website www.zionoil.com under “Investor Center” If you would prefer a hard copy of the Prospectus, please call: 1-888-TX1-ZION (1-888-891-9466) or email: dallas@zionoil.com
Zion Oil Announces Initial Closing of Follow-on Offering and Extends Termination Date
Subscriptions Still Being Accepted
Press Release Thursday October 16, 2008
DALLAS, Texas & CAESAREA, Israel–(BUSINESS WIRE)–Zion Oil & Gas, Inc. (AMEX: ZN) announced today that it received subscriptions on or before October 11, 2008 in excess of the minimum number of units required to conduct an initial closing. An initial closing is scheduled to take place on October 21, 2008. As the minimum subscriptions in order to close were received by October 11, 2008, Zion has withdrawn the recently filed post effective amendment which was filed to extend the minimum raise date and the final termination date.
Pursuant to the original terms of the offering, Zion is also extending the offering termination date. The offering will remain open until the earlier of: (i) January 9, 2009, (ii) the date on which a total of 2,500,000 Units have been subscribed and accepted, or (iii) such date as announced by the Company on no less than two trading days’ prior notice.
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 American Stock Exchange under the symbol ZN.
Before you invest, Zion’s registration statement (including a prospectus) to which this communication relates should be read along with the other documents it 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, 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.
