Zion Oil & Gas, Inc. (NASDAQ:ZN) announced today that it has
met and complied with two key conditions set by Israel’s Petroleum
Commissioner, enabling it to move toward drilling its next deep oil
well, about 40 kilometers (~25 miles) south of the Sea of Galilee,
where the Jordan and Jezreel Valleys meet.
Photos accompanying this announcement are available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/2bd273e0-a316-4636-a942-f4aab7ab129f
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The State of Israel produces only a few thousand barrels of oil
a day, which means it relies on the global market for more than 99
percent of its consumption. Zion Oil & Gas is committed to
discovering a domestic supply of oil, which is a vitally important
resource to ensure Israel’s strategic and financial security, and
in so doing to bless the nation.
“We are excited to have successfully negotiated a drilling
contract with DAFORA S.R.L. as well as completing and submitting
our drilling engineering plan,” says Victor G. Carrillo, Zion’s
CEO. “Reaching these two milestones, combined with signing
agreements with both Kibbutz Sde Eliyahu on whose property the
drill pad will be situated, and the Israel Land Authority (ILA) to
access and utilize the drill site, allows us to start drill pad
construction soon.”
Zion’s oil well drilling contract is with S.C. Daflog S.R.L.,
the Israeli-registered entity of and related party of DAFORA, a
Romanian company.
“Given that DAFORA has drilled over 1,000 wells in Romania,
Eastern Europe and East Africa, we are confident they are the right
partner for our Megiddo-Jezreel #1 well in Israel,” Zion’s
President, Dustin Guinn, said. “Zion will use DAFORA’s F-400
drilling rig, currently stored in Israel, to drill to about 4,500
meters (~15,000 feet).”
“We plan to award the drill site construction contract as soon
as our outside engineering firm finalizes our site plan to
accommodate DAFORA’s F-400 rig,” said Mr. Carrillo. “Assuming no
further weather or regulatory delays, drill site construction
should begin in November and take no longer than about 60 days to
finish.”
In preparation to drill, Zion has spent almost $1,000,000 on
necessary well drilling equipment, including well casing, and long
lead time items. The Company’s final step before spudding the well
is to submit the drill site plan along with its application to
drill to the government for final approval.
This all depends, however, on raising significant additional
capital. Zion is currently offering a public bond program with a
12% annual return for 12 years, in addition to their ongoing Direct
Stock Purchase Program (DSPP).
“We think this program offers a unique opportunity for
interested investors to both move our drilling operations forward
while also benefitting from a generous return,” Mr. Guinn
describes. “We are facing a final date of October 31, 2016, for
this current Bond Offering for those wanting to participate.”
Zion is dedicated to exploring for oil and gas onshore in
Israel. We are 100% focused on our Megiddo-Jezreel License, a large
area of about 99,000 acres south of the Sea of Galilee. Zion
has been granted the exclusive right to explore in an area that
appears to possess the key geologic ingredients of an active
petroleum system with significant onshore exploration potential. We
intend to start drilling our deep exploratory well, the
Megiddo-Jezreel #1, as soon as possible, assuming sufficient
capital is raised.
FORWARD LOOKING STATEMENTS: Statements in this
press release that are not historical fact, including statements
relating to Zion’s entry into a drilling contract with Daflog and
the terms, the public offering, and the results thereof 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
periodic filings with the Securities and Exchange Commission,
including the prospectus filed in connection with Zion's current
public offering, 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. Accordingly,
Zion can give no assurance that the expectations reflected in these
statements will prove to be correct. Zion assumes no responsibility
to update these statements.
Please note that this communication is neither
an offer nor a solicitation of any offer. The securities are
offered by prospectus only, and only within those states and other
jurisdictions in which the securities may be sold, and this
communication is neither an offer to sell nor a solicitation of any
offer to buy in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities of any such state or
jurisdiction.
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, Network 1 Financial Securities, Inc., will
arrange to send you the prospectus if you request it by calling
toll free 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 Info:
Zion Oil & Gas, Inc.
12655 North Central Expressway, Suite 1000
Dallas, TX 75243
Andrew Summey
Telephone: 888-891-9466
Email: invest@zionoil.com
www.zionoil.com
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