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
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: email@example.com