Zion Oil Jan 15 Update
January 22, 2010 by admin · Leave a Comment
Zion Oil & Gas Newsletter
January 15, 2010
Dear Shareholder and/or Friend of Zion…
There has been quite some discussion by our staff regarding Zion’s weekly updates, as not every week contains ‘news to report’ on every part of our exploration license and permit areas.
The general feeling was that if there is nothing new to report then we should simply state that fact. There will be weeks with much to report and there will be weeks with little to nothing new to report.
Turning to the Book of Ecclesiastes (1:9-10), there is the well known comment:
What has been will be again, what has been done will be done again; there is nothing new under the sun.
Is there anything of which one can say, “Look! This is something new”? It was here already, long ago; it was here before our time.
So, I am not going to continually repeat information that has already been sent to you. Where there is ‘no news to report this week’, I will write just that. But you can be certain that we are doing our best to move Zion’s exploration program forward… every day of every week.
This past week, Zion’s Founder and Chairman, John Brown, visited Israel together with Bill Ottaviani, a Petroleum Engineer who spent 25 years (1982 to 2007) working for Chevron Corporation in various countries and then two years (2007-2009) as Chief Operating Officer of Rex Energy, helping to build up Rex Energy in the USA. John Brown invited Bill Ottaviani to visit Israel as a prospective candidate for Zion’s Board and to review our operations and help advise us regarding some of the recommendations currently under technical evaluation.
Also, this week, we were visited by a team from ‘Halman-Aldubi Group’ one of Israel’s leading institutional Investment Management groups. Halman-Aldubi is the only company in Israel that deals with the management of provident funds on behalf of the public and is completely independent.
There was some Israeli Oil & Gas news released in Israel, this week. On Wednesday, January 13, 2010, the Jerusalem Post noted that Prime Minister Binyamin Netanyahu has ordered work to begin, this month, on a natural gas pipeline that will run from Dor Beach, south of Haifa, up to the oil refineries in Haifa. The significance of the Israeli government continuing to build the onshore natural gas pipeline infrastructure is that, in the event that we are successful in finding and producing commercial quantities of natural gas, the supply and distribution of that natural gas should be possible through the onshore pipeline system.
Here is this week’s operations update.
Drilling Operations at the Elijah #3 Well
The Elijah #3 site L to R: Bill Ottaviani, Richard Rinberg (Zion’s CEO), John Brown (Zion’s Founder and Chairman), Eyal Shuker (Investment Manager at Halman-Aldubi), Sandra Green (Zion’s CFO) and two analysts from Halman-Aldubi
The Elijah #3 well has been cased from the surface down to 6,706 feet (2,044 meters).
For the period from ‘spudding’ the well (that is ‘beginning drilling operations’) to December 31, 2009, we drilled to a depth of approximately 9,186 feet (2,800 meters), at an average rate of penetration of approximately 131 feet (40 meters) per day.
As of this morning, the Elijah #3 well has been drilled to a depth of approximately 10,938 feet (3,334 meters).
Both last week and this week, we have been drilling in the Asher Volcanic Complex, composed of tuffs, weathered basalts, non-weathered basalts, red shales and red and tan mudstones.
The Ma’anit-Rehoboth #2 Well
The Ma’anit-Rehoboth #2 Well Site, showing the well head
No additional news to report this week.
The Ma’anit-Rehoboth #2 well was drilled to a depth of 17,913 feet (5,460 meters). The well penetrated a number of geologic formations that have been preliminarily deemed to have hydrocarbon potential and we retrieved a small quantity of crude oil. We are awaiting analysis of that oil and are evaluating recommendations by our engineering staff regarding further testing and possible completion procedures.
The Issachar-Zebulun Permit Area
No additional news to report this week.
We have been reprocessing all of the existing seismic and are planning to acquire, in March 2010, approximately 30 kilometers of field seismic, in the permit area.
Finally, I’ll note that we have begun preliminary discussions with Aladdin Middle East Ltd regarding the drilling of an additional well, in order to progress and implement our multi-well program.
“In your good pleasure, make Zion prosper…”
Psalm 51:18
Thank you for your support of Zion, and
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, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, timing and potential results thereof and plans contingent thereon and 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.
Contact Information
More information about Zion is available at www.zionoil.com or by contacting Michael Williams at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610; email: dallas@zionoil.comhone: 1-888-891-9466
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.
Zion to Commence Drilling
April 20, 2009 by admin · Leave a Comment
Great news from Israel this morning! Zion’s AME drilling rig arrived at the port of Haifa on Saturday. Thirteen loads were transported to the Ma’anit Rehoboth #2 well site yesterday with the balance of the rig to be delivered today and tomorrow. According to Zion CEO Richard Rinberg drilling of Zion’s second well, the Ma’anit Rehoboth #2 should begin by next week. Here’s the Zion press release:
Zion Oil Updates Drilling Schedule
2,000 Horsepower Drilling Rig Arrives in Israel
Dallas, Texas and Caesarea, Israel – April 20,2009 – Zion Oil & Gas, Inc. (NYSE Amex: ZN) announced today updated information regarding the import into Israel of a drilling rig and crews owned and employed by Aladdin Middle East Ltd (AME). AME has been contracted 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.
The drilling rig arrived by ship at the Israeli Port of Haifa during the evening of April 18, 2009. The required taxes and import charges were paid and the first thirteen loads (out of a total of approximately eighty loads) cleared Israeli Customs on April 19 and were transported to the Ma’anit-Rehoboth #2 drill site and unloaded. The remaining loads are scheduled to be transported to the drill site on April 20 and 21.
Twenty members of AME’s rig crew arrived in Israel on April 18 and 19 and will begin rigging up (i.e. erecting) the drilling rig on April 20. It is planned that drilling operations will start by the end of April.
For updates on the daily drilling activity please visit Zion’s website “www.zionoil.com“.
Zion 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. Zion has applied for a further permit area (tentatively named by Zion the Issachar-Zebulun Permit Area) and the application, if granted, will increase Zion’s total license area to over 400,000 acres.
Zion’s Chief Executive Officer, Richard Rinberg, said today, “It has been a long and difficult journey, but we have overcome the many challenges and, in a few days, the drilling rig should begin 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 Amex under the symbol “ZN” and Zion’s warrants trade 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.
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 commencement of drilling operations, 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’scontrol. 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:
ZionOil & Gas, Inc.
Brittany Russell, 214-221-4610
dallas@zionoil.com
Zion AME Rig Leaves Turkey
April 16, 2009 by admin · 3 Comments
The 2,000 horsepower Aladdin Middle East drilling rig contracted by
Zion Oil & Gas to drill the Ma’anit Rehoboth #2 well in northern
Israel was loaded on the the freighter “Umiavut” yesterday at the
Turkish port of Iskenderun.
Moving the rig from Turkey to Israel is no small chore.
Transporting the Zion rig overland requires 80 truckloads of
equipment. That’s 80 trucks loaded in Ankara (inland Turkey) and
transported to the dock at Iskenderun. 80 trucks unloaded and put
aboard ship. 80 trucks unloaded at Haifa, Israel and transported to
Zion’s Ma’anit Rehoboth site. 80 trucks unloaded and set up at the
well site. Whew!
Here’s the estimated time lapse: Transit time via ship from Turkey
to the port of Haifa in Israel is four days. Combined transit and
setup time from the port of Haifa to the well site at Ma’anit is
nine days. Today is April 16. If all goes well, by April 30 (don’t
count Shabbat on the 25th) we may be hearing exciting news from
Israel!
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
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
Zion Oil & Gas Signs Drilling Contract
October 10, 2008 by admin · 2 Comments
Caesarea, Israel – September 15, 2008 – Zion Oil & Gas, Inc. (Amex: ZN) of Dallas, Texas and Caesarea, Israel announced today that it and Aladdin Middle East (“AME”) have signed a drilling contract. Last week, Zion’s Chief Executive Officer, Richard Rinberg, and the President and Chief Operating Officer of Zion, Glen Perry, visited AME’s offices in Ankara, Turkey, in order to inspect AME’s rig and equipment yard, meet with key AME personnel and finalize the terms of the drilling contract.
The contract was executed by both parties on September 12, 2008. Under the terms of the contract AME has committed to provide a completely refurbished and updated 2,000 horsepower rig and crews (anticipated to arrive in Israel in November 2008) and to drill Zion’s planned Ma’anit-Rehoboth #2 well ‘directionally’ to below 18,000 feet. The well is planned to appraise the strong shows seen in the Triassic (during the drilling of the Ma’anit #1 well) and to drill deeper into the Permian formation. It will be the first well drilled to the Permian in Northern Israel. The commencement of the drilling program is subject to receipt of various government permits and raising additional capital, whether through Zion’s current public offering or otherwise.
Richard Rinberg, Zion’s Chief Executive Officer, said today, “This is an important milestone for Zion, one which we have been working towards for a long time. We are very impressed by the quality of AME’s rig and the professionalism of their people. We appreciate the hospitality shown to us by AME during our visit and are excited about working with AME and drilling our next wells, just as soon as we can.
Additional information relating to the drilling contract and related matters will be included in Zion’s Current Report on Form 8-K, that Zion will be filing soon with the Securities and Exchange Commission.
Zion Oil & Gas, 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.
AME is an independent oil and gas exploration and production company, incorporated in Delaware in 1962, with its head office in Wichita, Kansas. AME has drilled more than 130 exploration and development wells in Turkey for major oil companies, including Exxon, Mobil, Wintershall AG, MOL, Placid Oil, Neste Oy, Terralliance (USA), JKX (UK) and TETHYS (Sweden). Its rig inventory includes 11 drilling and workover rigs and AME’s personnel have enormous work experience in many countries, including Turkey, Bulgaria, Azerbaijan, Kazakhstan, Turkmenistan and Georgia.
