Zion Oil Announces Drilling Delay

January 28, 2009 by · 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 Stock Trading Over $8.00

January 7, 2009 by · 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 · 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.

Zion Oil & Gas Prepares for 2009 Drilling in Israel

December 21, 2008 by · 7 Comments 

December has been a busy month for Zion Oil & Gas, Inc. (Dallas, Texas and Caesarea, Israel) as they prepare for drilling activities scheduled for early 2009.

The company issued three press releases over the last thirty days that, if we look a little deeper, may give us a forecast on what to expect in 2009.

The first press release, issued on November 14, reported the company’s third quarter financial results. Quarterly reports from public companies are required by SEC regulations. Zion Oil reported a net loss of $865,000 for the quarter (that’s eight cents per share). A loss like that sounds pretty glum unless we remember that Zion, at this point, is an exploration company. They explore for oil. That means they don’t produce income until they find oil. Now about finding oil – here’s something interesting you may miss if you don’t read the press release closely:

“Zion is moving forward with its exploration and drilling plans. We anticipate that the refurbished 2,000 horsepower drilling rig, with which we plan to drill Zion’s planned Ma’anit-Rehoboth #2 well ‘directionally’ to below 18,000 feet, will be shipped into Israel during January 2009. We have almost finished preparing the drill site and expect to commence drilling shortly after the rig arrives on location.”

Zion expects the delivery of a “2,000 horsepower drilling rig” in January. The new rig has a drilling depth capacity of 20,000 feet. Why is that important? In 2005 Zion Oil drilled the Ma’anit #1 well to a depth of 15,500 feet. The deeper they drilled the stronger the oil shows became. So why stop at 15,500 feet? That was all the rig they were drilling with could stand. They wanted to go to 18,000 feet but they would have lost the well due to rig failure if they had kept going. The rig Zion used in 2005 was a 1,000 horsepower rig with at total depth drilling capacity of 15,000 feet. It was the biggest rig in Israel.

So now you can understand why the rig Zion has coming from Turkey in January is such an important part of a commercially viable oil discovery in Northern Israel. Zion discovered oil at the Ma’anit #1 in 2005. They didn’t have the equipment finish the job. Come January they will.


The next press release
, issued December 2, announced Zion issuing units and the second closing of their current public offering. Zion issued 350,994 units. A unit is one share of Zion stock and one warrant, giving the purchaser the option to buy one more share at a fixed price ($7.00) any time between the closing of the offering and January 31, 2012. Zion’s stock, as I write this post is at $6.20; it’s been bouncing between $6.10 and $6.50 over the last thirty days. That stock was issued at $7.00 in January of 2007 when the company went public. The fact that the stock has pretty much held its value for two years without any oil production or revenue, and in light of the current global economic meltdown is more than impressive. Makes me wish General Motors and Bank of America stock were as stable. By the way, this public offering has its final closing on January 9. After that, the public will not be able to buy more units (one share of stock & one warrant).

Let’s put two and two together. Zion is taking delivery on the rig that will reach the depth they couldn’t get to when they drilled in 2005. Zion’s public offering is closing January 9. Those who bought or buy  (we still have a few weeks left) during the current offering get one share of stock and the right to buy another share at $7.00 any time before January 31, 2012. If Zion’s stock has held its value in the last two years in spite of it not producing any oil revenue and a world economic collapse, imagine where it could go with an oil discovery. I’ll leave the rest of the math to you.

Finally, the last press release issued December 16; Zion announced the purchase of over $1 million in drilling pipe, crating up the drilling rig for transport to Israel and final preparations at the drill site. This isn’t just a post on the internet, folks. It’s the real deal. Zion Oil will be drilling at the first of the year. And who will be a part of whatever happens to Zion in 2009 will be determined when the public offering closes in January.

You can read all of Zion Oil’s press releases at http://zionoil.com/press-releases. The brilliant analysis and all news about oil and Israel, you can get right here at http://oilinisrael.net.

Exploratory Drilling for Oil in Judean Desert Passes Final Hurdle

November 24, 2008 by · 1 Comment 

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 Council of National PJudaen Drillingarks 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

November 24, 2008 by · Leave a Comment 

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

November 24, 2008 by · Leave a Comment 

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 PipesTomCo 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.’

Zion Oil Announces Revised Drilling Schedule

November 7, 2008 by · Leave a Comment 

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

October 24, 2008 Letter From Zion CEO Richard Rinberg

October 25, 2008 by · 1 Comment 

Zion CEO Richard Richard RinbergDear 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 ISSUES UNITS IN INITIAL CLOSING

October 25, 2008 by · Leave a Comment 

Subscriptions Still Being Accepted

Dallas, Texas and Caesarea, Israel – October 24, 2008 – Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced that, today, the company issued 350,994 units in the initial 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 initial closing was $3,509,940.
 
Zion continues to accept subscriptions at $10 per unit and 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.
 
Zion has scheduled November 17, 2008 as the cut-off date for the receipt of documents to be included in the next interim closing.
 
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 and Zion’s units will trade under the symbol ZN.U
 
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 the future effectiveness of Zion’s registration statement, matters regarding the offering and closings thereof, Zion’s planned operations, potential results thereof and plans contingent thereon, including 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’s homepage may be found at: www.zionoil.com

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