Kibbutz Ma’anit Agreement Paves Way for Zion’s M-J#3 Well
June 1, 2010 by admin · 2 Comments
Kibbutz Ma'anit, Northern Israel
According to company CEO Richard Rinberg, Zion plans to start drilling the Ma’anit-Joseph #3 (MJ#3) in August. Zion signed an agreement with the land owner, Kibbutz Ma’anit, for access to the well site and continues the permitting process with various Israeli state agencies.
Rinberg wrote Zion share holders in his May 28 update:
“Further to our ongoing exploration work on the Ma’anit geological structure, we are moving forward with the required permitting and planning for the M-J #3 well (targeted for the ‘deep’ Permian geologic structure). (Deut. 33:13-16)
We are well underway in the process of assembling the various product and service suppliers needed to drill this new well. As reported last time, we instituted a bidding and selection process designed to ensure that we use the best available resources, offering Zion the most favorable overall value. Based on early vendor indications, we anticipate a strong response to our RFQs (Request For Quotes) and have already begun receiving price quotes. All price quotes are expected by month-end and the final vendor selection will follow shortly thereafter.
Permitting for the new well continues to proceed favorably with the recent achievement of a very significant milestone: agreement with Kibbutz Ma’anit granting us access to Kibbutz land where we desire to drill the MJ-3 well.
In Israel, ‘permitting a well’ is a very lengthy and complicated process, as permits are required from various authorities, including the: Water, Fire, Health, Military, District Planning Commission, Environmental Protection, Israel Land, National Infrastructure, Civil Aviation and National Transport Authorities… and of course, the owner of the land.
With the Kibbutz agreement now secured, we are fine-tuning the well site layout and beginning preliminary plans for construction of the site.
The layout and construction of the well site is a project in of itself, as it involves the careful placement of storage containers, offices and living quarters, equipment and liquid storage facilities, power units, and piping all efficiently arranged around the drilling rig and large liquid containment (“mud”) pits while allowing adequate space for the safe movement of personnel and heavy equipment.
As the M-J #3 well site is near residential and commercial areas, we are working diligently with local and governmental groups, to ensure the site will meet (or in some cases exceed) all applicable environmental and safety requirements.
Actual well site construction can begin once we have received all necessary permits. Depending on weather and equipment availability, we anticipate site construction to be completed within one month after being started. Given the progress we are making in both planning and permitting for the M-J #3 well, we remain optimistic that drilling will begin this summer.”
Plans for the new Ma’anit-Joseph #3 well were initiated in April after production testing determined that commercial quantities of gas and oil were not present in Zion’s nearby Ma’anit-Rehoboth #2 well.
Zion Oil October 2, 2009 Company Update
October 8, 2009 by admin · 4 Comments
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Zion Oil & Gas Newsletter
October 2, 2009
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Dear Shareholder and/or Friend of Zion…
Here is an update of our progress during the past week.
Operations on the Ma’anit-Rehoboth #2 Well
In last week’s update (dated September 25, 2009) I wrote:
“We have decided, for the present, not to drill any deeper in this well and are now analyzing and establishing the priorities of the seven zones that warrant completion testing. The well bore is in excellent condition and it is also possible that we will drill this well deeper in the future. Next week, I will comment further.”
The Ma’anit-Rehoboth #2 well was planned as a deep well in order to test the Permian geological formation and the original planned target depth was 5,500 meters (18,040 feet).
During the planning of the well, our geologists, basing their opinion on the available seismic and other data, believed that drilling to the planned target depth of 5,500 meters (18,040 feet) would result in us testing the Permian geological layer.
In September 2009, when our drilling reached a depth of 5,460 meters (17,913 feet), we had reached a depth less than 1% away from the original target depth.
However, during drilling, it became apparent that we were, in fact, drilling into a ‘fault line’. (This means that the rock on one side of the fracture had moved with respect to the rock on the other side.) To make matters more complicated, there did not seem to have been just one fault line but more likely a ‘fault zone’.
Due to the presence of the fault zone, the geological formation in which we were drilling required much more analysis.
After carrying out that analysis, we decided that, almost certainly, we were still in the Triassic geological layer and could not determine how much further we would have to drill to reach the Permian geological layer.
In the light of the uncertainty regarding the depth of the Permian geological layer at our well site and knowing that we have found seven zones that warrant completion testing, we decided that the prudent course, for the present, was to stop drilling on this well and (i) test the seven zones mentioned, as well as (ii) carry out further analysis on the geology, using the drilling and logging data obtained in the last weeks. However, at a later stage, if we decide to, we can drill this well deeper.
Not only did we have the benefit of our internal experts, Dr. Druckman, Dr. Kashai and Stephen Pierce who between them have over 100 years of professional experience, but we also received input from external organizations and experts, such as the ‘The Geophysical Institute of Israel’ and Dr. Dorit Korengrin and Dr. Brian Conway of ‘The Geological Survey of Israel’.
The Geophysical Institute of Israel specializes in the application of geophysical methods for mapping the structure and characteristics of the subsurface; their website address is:
http://www.gii.co.il/index.php?page_id=1&lang_action=change_lang&to_lang=en
The Geological Survey of Israel is involved in earth science research and development; their website address is: http://www.gsi.gov.il/eng/
Preparations at the site of the Elijah #3 Well
This coming week, we plan to start rigging down (at the Ma’anit site) and start moving the drilling rig and equipment to the site of the Elijah #3 well.
We have initiated our security on the area and equipment has now started to arrive on site.
We have set the ‘conductor pipe’; that is, a short length of pipe, driven into the ground. Conductor pipe is run because the initial shallow section of the well is drilled in unconsolidated soil rather than consolidated strata (i.e. solid formations) encountered deeper.
We estimate that we will start drilling in approximately the middle of October 2009.
Rights Offering
This week, on October 1, 2009, in response to comments received from the Securities and Exchange Commission (SEC), Zion filed an additional amendment to the registration statement.
As amended, the proposed Rights Offering will offer a maximum of 3.6 million shares of stock at $5.00 for each share of stock. Should the rights offering be fully subscribed, the company will receive gross proceeds of $18 million.
Under the (amended) rights offering, stockholders have the right to purchase twenty three (23) shares of stock for every one hundred (100) shares of common stock owned on the (to be determined) record date. This is identical to 0.23 subscription rights for each share of common stock owned on the record date.
If you were among the many hundreds of our stockholders who did not receive as many $5.00 shares as you subscribed for in the earlier rights offering, this is your ‘second chance’ opportunity. Obviously, this offer is open to everyone who is a stockholder of record on the (as yet undetermined) record date.
The offering can only ‘go effective’ (or in plain language, ‘begin’) when the SEC has completed its review, so we patiently wait.
CBN NEWS Interview
On Wednesday of this week, as you can see in the photographs, Chris Mitchell, the Middle East Bureau Chief of CBN NEWS visited us, in order to interview John Brown and visit the site of the Ma’anit-Rehoboth #2 well.
John explained his vision, gave Chris Mitchell an understanding of the history of Zion Oil & Gas and then I gave CBN NEWS a guided tour of our operations. It transpired that some members of the CBN NEWS photographer’s family were enthusiastic Zion shareholders. I’ll let you know when the article has been published and/or broadcast.
The CBN NEWS website address is: http://www.cbn.com/cbnnews/
“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, 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.
NOTICE
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 will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466 ).
Contact Information
More information about Zion is available at www.zionoil.com or by contacting Kim Kaylor at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610; email: dallas@zionoil.com
Zion Drilling into the Permian
Glen Perry, Stephen Pierce and Eliezer Kashai reviewing Triassic results
Zion Oil & Gas reports in their weekly update that they have finished Triassic logging operations and have resumed drilling at the Ma’anit-Rehoboth #2 to a finished depth of 18,000 feet; well into the Permian.
A couple of questions keep coming up:
1. Why did they stop at the Triassic and what do they expect to find there?
2. Why is the Permian so important?
I’ll try to answer those questions from an amateur’s perspective.
Q: Why did they stop at the Triassic and what do they expect to find there?
A: Because of their experience and data from the Ma’anit #1 well, drilled in 2005, they have a pretty good idea of what they’ll find in the Triassic this time. The Ma’anit #1 yielded hydrocarbon shows from 12,000 to 15,500 feet (the bottom of the hole). At 15,128 feet they encountered heavy salt water with oil on top. At 14, 245 – 14, 593 feet they encountered hydrocarbons again (and water again). Finally, at just under 14,000 feet Zion encountered natural gas and were able to maintain a six to ten foot gas flair at the well head. When they shut the well down for evaluation, water infiltrated the hole again and they elected to give up on developing the Ma’anit #1. Translation – Zion knows they’ve got gas, or gas and oil between 12,000 and 15,500 feet because they’ve seen it. With better equipment and fore-knowledge of what to expect, they had a lot of confidence in what they would find in the Triassic strata this time. Wire logging in the Triassic is finished, they’ve seen the initial data, but news of what the Triassic holds won’t go public until the data is confirmed.
Q: Why is the Permian so important?
A: Zion Oil’s research in 2007 confirmed that northern Israel sits on top of a formation called the ‘Permian Arqov’ and that this formation is of the “same age and depositional environment” as the ‘Permian Khuff’ formation in the Persian Gulf that holds 25% of the world’s known natural gas reserves. Noble Energy’s massive natural gas discovery off the Haifa coast certainly supports the idea that there’s a lot of natural gas in Israel. If Zion taps into an enormous field of natural gas, along with Noble’s off-shore discovery, Israel may become one of the world’s significant energy exporters. The Permian also holds most of the world’s oil reserves. If Zion discovers a lot of oil, it will most likely be found in the Permian.
Zion’s CEO Richard Rinberg isn’t saying much of anything about initial test results from the Triassic or of what Zion hopes to find in the Permian, and rightly so; he’s the guardian of a public company. Anything he says, positive or negative, has an effect on the company’s value and the shareholders’ investment and trust. He’ll make darned sure that what he announces, when he announces it is fact; in his position there’s no room for conjecture.
I’m not an employee of Zion Oil and this newsletter and the oilinisrael.net website is completely independent of Zion Oil or any other exploration company in Israel, but outside of Zion’s managers and few Israeli oil professionals and government officials, it’s fair to say that I know more about the history of Israel’s search for oil, biblical or otherwise, than any other ‘outside’ observer. So until we hear official news of what the Ma’anit-Rehoboth #2 holds for Zion Oil, I’ll keep telling you what I know.
Zion Oil July 3-2009 Update
July 3, 2009 by admin · 5 Comments
Zion's International Team at the Ma'anit-Rehoboth #2 Well
Dear Shareholder and/or Friend of Zion…
How many people does it take to drill a deep well in Israel?
It seems that the answer is: ‘A whole lot…’
The picture above was taken this week, on Monday at noon, when the daily rig worker shift-change occurs.
As you can see, thirty eight of us gathered in front of the main gate to the drillsite and dutifully smiled (or grimaced) at the camera.
The people in the identical red clothes are Aladdin’s Turkish rig crew, the people in orange clothes are from Baker INTEQ in Italy. Most of the rest are Zion personnel from Israel and the USA.
And so, we fly the Israeli, Italian, Turkish and U.S. flags. A truly international effort.
In deference to those hard at work in Zion’s Dallas office, we are also flying the ‘Lone Star Flag’ (the Texas flag). The 1933 Texas Flag Code assigns the following symbolism to the colors of the Texas flag: blue stands for loyalty, white for purity, and red for bravery.
These are all qualities needed when drilling such a deep well.
Drilling Operations on the Ma’anit-Rehoboth #2 Well
In past weeks, we have drilled this well to approximately 15,850 feet, into the Triassic geological layer, but this week, we have been ‘logging’ the well. (Next week, we will continue drilling to our final target drilling depth, at approximately 18,000 feet in the (deep) Permian geological layer.)
Having reached 15,850 feet, after the drill pipe has been taken out, what is left is a 15,850 feet, mud-filled, cylindrical hole in the rock. So, we now carry out the ‘logging’, that is, test and evaluate the well, using electrical wireline well logs. We are running ‘open-hole’ logs, that is, the well has bare rock walls (with no casing).
A ‘sonde’ is lowered down the hole on a ‘wireline’ and various measurements are recorded.
The ‘sonde’ is a cylinder filled with instruments that can sense the electrical, radioactive and sonic properties of the rocks (and their fluids) and the diameter of the wellbore.
The ‘wireline’ is an armored cable with steel cables surrounding conductor cables in insulation. It is reeled out from a drum in the back of the logging truck.
The data from the sonde is transmitted up the cable to instruments in the logging truck and recorded on a long strip of paper.
As I mentioned last week,we are using some state-of-the-art Baker Atlas logging equipment, so we hope to obtain very high-quality data.
One of the logs being run is a ‘natural gamma ray log’. This uses a scintillation counter to measure the natural radioactivity in the rocks along the wellbore. The gamma ray log is plotted with low radioactivity to the left and high radioactivity to the right. Shales (a very common sedimentary rock) are ‘hot’ and kick to the right. Sandstones and limestones, potential reservoir rocks, kick to the left. The amount of shale in a sandstone or limestone can be computed from its radioactivity on a gamma ray log.
Another log being run is the ‘spontaneous potential log’. This measures the electrical current caused by the contact of mud filtrate in the pores of the rock with the natural waters in the rock.
In all we will be taking seven separate measurements and our geologists will certainly be busy with data analysis and evaluation…
I’ll mention that, not only will there be an in-house evaluation of the logging but also an independent analysis by a Houston consultant.
We want to be certain of our conclusions.
Rights Offering
Our staff are busy finalizing the closing of the rights offering, the shares to be issued and the money to be returned as a result of the over-subscriptions received in the rights offering. We are trying to complete this as soon as possible. If you subscribed, thank you for your support and your patience.
RUSSELL Indexes select Zion Oil & Gas (ZN)
On Friday, June 26, 2009 Zion was included in the Russell 3000 ® Index, a value weighted index that measures performance of the top 3,000 stocks of the investable U.S. equity market.
You may have noticed that, on that Friday, the volume of Zion stock traded was over 2.1 million shares and the price jumped dramatically.
This was almost certainly due to the index funds buying ZN stock to ensure that they are correctly balanced to track the index.
As Warren Buffet has commented: “In the short term the market is a popularity contest; in the long term it is a weighing machine.”
To have a sustained high share price in the long term, we will need a ‘discovery’ of hydrocarbons. And that is exactly what we are working on.
Exult and shout for joy, O Zion dweller
for the Holy One of Israel is great in your midst.
Isaiah 12:6
Thank you for your continued support of Zion
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, drilling efforts and potential results thereof and plans contingent thereon, 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.
More information about Zion is available at www.zionoil.com or by contacting Kim Kaylor at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610; email: dallas@zionoil.com
Contact Information
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phone: 1-888-891-9466
Zion Oil Reaches Permian Target
It is correct that we have refrained from releasing ‘raw data’ (and will continue to do so) because we will not release information until it has been properly and professionally evaluated and confirmed.
When we drilled the Ma’anit #1 well, we posted daily drilling reports, but as our stock is now publicly traded, we cannot make such information available without proper review. This would be a daily burden on management time and add a large extra cost for external consulting and the required public filings.
In previous emails, we noted that the procedure is first to drill and then to ‘appraise and evaluate’ using electrical wireline well logs.
We plan to finish the intermediate drilling phase soon and then to log the well. We will be using some state-of-the-art Baker Atlas logging equipment, including some of the following:
Caliper Log, Compensated Neutron Log, Compensated Densilog, Gamma Ray Log, High Definition Induction Log, Formation Resistivity Imager (STAR), Circumferential Borehole Imaging Log (CIBL) and the Hexagonal Diplog.
Thank you for your patience and you can be sure that when we do release information, it will be as correct as we can possibly make it.”
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 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 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.
