DALLAS and CAESAREA, Israel, March
18, 2020 /PRNewswire/ -- Zion Oil & Gas, Inc.
(Nasdaq: ZN) announces they (i) entered into a Purchase
and Sale Agreement on March 12, 2020,
for a drilling rig, drill pipe, and related equipment for
$5.6 million in cash, and (ii) closed
that purchase on March 12, 2020, the
same day, by Bill of Sale from the seller to Zion.
On March 13, 2020, Zion paid the
seller $4.6 million in cash and
remitted the remaining $1.0 million
in cash to an escrow agent to be held pending completion of
acceptance testing of the rig upon its arrival in Israel.
"This is a new era for Zion and a positive step forward for our
2020 exploration plans," Zion's COO, Robert
Dunn said. "With our asset based in the State of Israel, our planning and flexibility
will become more robust."
"We believe this is the right time for this to happen," stated
Zion's President, Bill Avery.
"Having cash budgeted and available for the purchase of this rig
shows the strong support of our shareholders and evidence of God's
faithfulness."
THE RIG
The rig is a 1600 horsepower AC Top Drive equipped rig with a
twin 1600 horsepower mud pump system with a depth capability of
20,000 ft. The rig will be equipped with almost 15,000 ft of heavy
5" drill pipe along with associated well control equipment and
inventory.
The rig underwent a full CAT III & IV certification in late
2017, reassuring the quality of the rig and ancillary equipment,
and it has drilled two wells since certification.
The rig and equipment will be imported into Israel from Romania, where the Drilling Rig is currently
stored.
The State of Israel has
currently imposed travel restrictions relating to the Coronavirus
outbreak, including a requirement that any person arriving in
Israel, including the operating
crew for the rig, will currently need to undergo a two-week
quarantine.
In addition, the ports of entry into Israel through which the rig will need to
enter, may be undergoing work disruptions on account of the virus
outbreak. Accordingly, it is not possible at the present time to
accurately estimate the time or resources that may be necessary to
import the Drilling Rig onto the well site or any delay arising as
a consequence of the outbreak.
Zion Oil & Gas, a public company traded on NASDAQ (ZN),
explores for oil and gas onshore in Israel on their 99,000-acre Megiddo-Jezreel
license area.
"The Lord Himself goes before you and will be
with you; He will never leave you nor forsake you. Do not be
afraid; do not be discouraged."
Deuteronomy 31:8
"Sing to the Lord, for he has done glorious
things; let this be known to all the world. Shout aloud and
sing for joy, people of Zion, for great is the Holy One of
Israel among you."
Isaiah 12:5-6
FORWARD-LOOKING STATEMENTS: This press release contains
forward-looking statements. Statements in this communication
that are not historical fact, including statements regarding Zion's
planned operations, anticipated attributes of geological strata
that may be drilled or tested in the future, import the rig it
purchased into Israel in a timely
manner and Zion's ability to successfully raise the funds needed to
undertake all of its planned exploration efforts; Zion's ability to
continue as a going concern; Zion's ability to have its common
stock continue to be listed on the Nasdaq Capital Market; the
timing and completion of the 3-D seismic survey
processing, interpretation of the results and plans contingent
thereon, and operational risks in ongoing exploration efforts,
are forward-looking statements which are made pursuant to the
safe harbor provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities and Exchange
Act of 1934, as amended. 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 Info:
Andrew Summey
VP, Marketing and Investor Relations
Zion Oil & Gas, Inc. (NASDAQ: ZN)
12655 North Central Expressway, Suite 1000, Dallas, TX 75243
Telephone: 888-891-9466
Email: info@zionoil.com
www.zionoil.com
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SOURCE Zion Oil & Gas, Inc.