Current Report Filing (8-k)
October 07 2016 - 6:04AM
Edgar (US Regulatory)
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
October
6, 2016
Date
of Report (Date of earliest event reported)
Zion
Oil & Gas, Inc.
(Exact
name of registrant as specified in its charter)
Delaware
(State
or other jurisdiction of incorporation)
001-33228
|
|
20-0065053
|
(Commission
File Number)
|
|
(IRS
Employer Identification No.)
|
12655
North Central Expressway, Suite 1000, Dallas, TX 75243
(Address
of Principal Executive Offices)
Registrant's
telephone number, including area code: 214-221-4610
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
☐
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
☐
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
☐
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
☐
|
Pre-commencement
communications pursuant to 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 1.01 Entry
into a Material Definitive Agreement
The
information set forth in Item 8.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01
Item 8.01 Other
Events.
On October 6, 2016, Zion Oil & Gas, Inc.
(the “Company”) as the Operator executed a Drilling Agreement (“Agreement”) with S.C. Daflog S.R.L. (“Daflog”)
as the Contractor. Daflog is a related party entity of DAFORA S.A. (“DAFORA”). Daflog operates as an Israeli
Branch (“Contractor”) in Israel for DAFORA. DAFORA is the largest drilling company in Romania and has drilled over
1,000 wells in Romania, Eastern Europe and East Africa. They are members of the International Association of Drilling Contractors.
The Company will use DAFORA’s F-400 drilling rig, which has a 3,000 HP capacity drawworks capable of drilling to a depth
of over 20,000 feet, which is more than adequate to provide sufficient horsepower and safety factor to drill the Company’s
planned 15,000 foot Megiddo-Jezreel #1 well (“MJ#1”). The DAFORA F-400 rig is currently situated in Israel and had
previously drilled a 15,600 foot well for Givot Olam in the Meged Oilfield.
The terms of the Agreement shall be for one
well with up to two optional wells at the discretion of the Company under an Option Drilling Program. The Agreement represents
a standard industry drilling agreement for drilling contractors and operators under “Good Oil Field Practice.” The
rig mobilization is included in Rig Commissioning, which is $384,000 if rigged up on Givot Olam’s Meged 8 site prior to mobilization
to MJ#1, or $319,000 if only rigged up at the MJ#1 drill site. The move between wells of the operator, if on the same location,
would be $100,000. The Operating Daily Rate would be $23,340, or less if on standby or repairs or on a Saturday. Additional terms
and conditions of the Agreement may be found below in Exhibit 10.1.
On September 25, 2016, the Company received
the fully executed agreement with the Israel Land Authority (“ILA”), the lessor of the land to Kibbutz Sde Eliyahu,
to access and utilize the 3.18 acre drill site for oil exploration. The planned MJ#1 well is situated on the fields of Kibbutz
Sde Eliyahu. Since the agreements with the kibbutz and the ILA have been executed, the Company has been reviewing comprehensive
bid proposals from various contractors to begin drill site construction soon, which should take 45 to 60 days to complete.
The commencement of
the drilling program is subject to the receipt of various government permits and raising additional capital, whether through Zion’s
current public offering of its bonds or otherwise. There can be no assurance that the Company will be successful in obtaining the
requisite permits or raising the capital needed to commence drilling.
The foregoing description
of the transaction is only a summary and is qualified in its entirety by reference to the Agreement attached hereto as Exhibit
10.1, which is incorporated herein by reference.
Item 9.01 Financial
Statements and Exhibits.
(d)
Exhibits
|
10.1
–
|
Drilling
Agreement between Zion Oil & Gas, Inc. (“Operator”) and S.C. Daflog S.R.L. (“Contractor”)
|
|
|
|
|
99.1
–
|
Press
release dated October 6, 2016
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereto duly authorized.
|
Zion
Oil and Gas, Inc.
|
|
|
Date: October
6, 2016
|
By:
|
/s/
Victor G. Carrillo
|
|
|
Victor
G. Carrillo
|
|
|
Chief
Executive Officer
|
3
Zion Oil and Gas (QB) (USOTC:ZNOG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Zion Oil and Gas (QB) (USOTC:ZNOG)
Historical Stock Chart
From Apr 2023 to Apr 2024