DALLAS and CAESAREA, Israel, Aug.
21, 2018 /PRNewswire/ -- Zion Oil & Gas, Inc. (NASDAQ:
ZN) gives further guidance of operational and administrative plans
as it announces a new Unit Program under its ongoing Direct Stock
Purchase Plan (DSPP).
"Following up on the detailed operational update that was
released on August 16th,
we reiterate the fact that there is a lot of work left to be done
to determine the commerciality of the Megiddo-Jezreel #1 (MJ #1)
well," says Dustin L. Guinn, Zion's
President and Chief Operations Officer.
Zion has only tested approximately 220 feet of a well that was
drilled to a total depth of over 16,600 feet, or less than 1.5% of
the total measured depth. Zion emphasizes that there are
multiple zones that may be capable of yielding material amounts of
hydrocarbons over the 16,000 feet of geologic column not yet
tested. We believe it is imperative to further explore the
well's potential based upon independent 3rd party
petrophysical analysis that suggests the existence of hydrocarbons
within MJ #1.
NEW UNIT PROGRAM
Zion is launching a Unit Program where each Unit (priced at
$250.00) is comprised of:
- A certain number of shares of Common Stock determined by
dividing $250.00 (the price of one
Unit) by the average of the high and low sale prices of the
Company's publicly traded common stock as reported on the Nasdaq on
the Unit Purchase Date, and
- 25 common stock purchase warrants. Each warrant (symbol
"ZNWAJ") affords participants the opportunity to purchase one share
of ZN common stock at a warrant exercise price of $1.00.
The warrants will first become exercisable on Monday, October 29, 2018, and continue to be
exercisable for one year after the exercise date at a per share
exercise price of $1.00.
Zion has provided more information on the Unit Program on its
website: https://www.zionoil.com/dspp.
Zion's Administrative Update:
As we previously disclosed, the Securities and Exchange
Commission ("SEC") first informed Zion of a non-public,
fact-finding inquiry by subpoena for production of documents
received on June 21, 2018, before
which Zion had no formal or informal communication with the SEC
regarding this matter.
The SEC has asserted no accusation of wrongdoing nor have they
expressed any negative opinion of any person within Zion.
Zion continues to fully cooperate with and work with the SEC in the
provision of requested information.
Following Zion's disclosure of the SEC investigation, Zion
became aware of a number of law firms who allege they are
investigating Zion's compliance with federal securities laws and
are soliciting clients. To our knowledge, only one lawsuit
has been actually filed in federal district court, but to date,
Zion has not been served with formal notice of litigation.
We believe these claims are frivolous and without merit, and
we will wage a vigorous defense.
Zion is dedicated to exploring for oil and gas onshore
Israel and is 100% focused on its
Megiddo-Jezreel License, a large area south and west of the Sea of
Galilee that includes the Jezreel and Megiddo valleys. This license
gives Zion the exclusive right to explore in an area of
approximately 99,000 acres that appears to possess the key geologic
ingredients of an active petroleum system with significant
exploration potential. Zion's latest information on ongoing
operations can be found on their website:
https://www.zionoil.com/updates
Zion Oil & Gas, Inc. has filed with the SEC a registration
statement (including a prospectus) for the unit program under the
DSPP to which this communication relates. That prospectus and other
documents the Company has filed with the SEC may be obtained at no
charge (free) by visiting EDGAR on the SEC website
at www.sec.gov. Alternatively, the Company will send you the
prospectus upon request by calling toll free 888-891-9466. Direct
links to the SEC location, or to the documents in PDF, may be found
on Zion's home page at www.zionoil.com.
FORWARD-LOOKING STATEMENTS: Statements in this communication
that are not historical fact, including statements regarding Zion's
planned operations, anticipated attributes of geological strata
being drilled or tested, the presence or recoverability of
hydrocarbons, operational risks in testing and well completion,
timing 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.
Contact:
Zion Oil & Gas, Inc.
12655 North Central Expressway, Suite 1000
Dallas, TX 75243
Andrew Summey:
Telephone: 214-221-4610
Email: info@zionoil.com
www.zionoil.com
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SOURCE Zion Oil & Gas, Inc.