DALLAS and CAESAREA, Israel, Nov.
29, 2018 /PRNewswire/ -- Zion Oil & Gas, Inc.
(NASDAQ: ZN) announces that it is completing the final phase
of plugging the Megiddo Jezreel #1 (MJ#1) well in accordance with
the wishes of various Israeli government ministries to allow for
re-entry for future water monitoring.
The vision of Zion Oil & Gas remains to help Israel become energy independent, and in doing
so, use our projects as a platform to share the gospel of
Jesus Christ. That vision has
not changed, and while the MJ#1 was determined to be
non-commercial, we believe it was a meaningful and impactful
project and one which we believe justifies further exploration
efforts within our license area.
The MJ#1 well has provided Zion with information that we believe
is important for potential future exploration efforts within our
license area. As with many frontier wildcat wells, the MJ#1
also left several questions unanswered.
While not meant to be an exhaustive list, a summary of what Zion
believes to be key information learned in the MJ#1 well is as
follows:
- The MJ#1 encountered much higher subsurface temperatures at a
depth shallower than expected before drilling the well. In
our opinion, this is significant because reaching a minimum
temperature threshold is necessary for the generation of
hydrocarbons from an organic-rich source rock.
- The known organic rich (potentially hydrocarbon bearing)
Senonian age source rocks that are typically present in this part
of Israel were not encountered as
expected. Zion expected these source rocks to be
encountered at approximately 1,000 meters in the MJ#1 well.
- MJ#1 had natural fractures, permeability (the ability of fluid
to move through the rock) and porosity (pore space in rock)
that allowed the sustained flow of formation fluid in the shallower
Jurassic and lower Cretaceous age formations between approximately
1,200 and 1,800 meters. While no hydrocarbons were
encountered, Zion believes this fact is nonetheless significant
because it provides important information about possible reservoir
pressures and the ability of fluids to move within the formation
and to the surface.
- MJ#1 encountered oil in the Triassic Mohilla formation which
Zion believes suggests an active deep petroleum system is in our
license area. There was no natural permeability or porosity
in the Triassic Mohilla formation to allow formation fluid to reach
the surface naturally during testing and thus the MJ#1 well was not
producible or commercial.
- The depths and thickness of the formations we encountered
varied greatly from pre-drill estimates. This required the
MJ#1 to be drilled to a much greater depth than previously
expected. Zion has tied these revised formation depths
to our seismic data which will allow for more accurate
interpretation and mapping in the future.
A summary of what Zion believes to be some key questions left to
be answered are:
- Is the missing shallow Senonian age source rock a result of
regional erosion, or is it missing because of a fault that cut the
well-bore and could be reasonably expected to be encountered in the
vicinity of the MJ#1 drill site? Zion believes this is an
important question to answer because if the Senonian source rocks
do exist in this area, the high temperatures encountered are
sufficient to mature these source rocks and generate oil.
- Do the unusually high shallow subsurface temperatures extend
regionally beyond the MJ#1 well, which could allow for the
generation of hydrocarbons in the Senonian age source rock within
our license area?
- As a consequence of seismic remapping, where does the MJ#1 well
lie relative to the potential traps at the Jurassic and Triassic
levels and was the well location too low on the structures and
deeper than the potential hydrocarbons within those traps?
As a result of these unanswered questions and with the
information gained drilling the MJ#1 well, Zion now believes it is
prudent and consistent with good industry practice to try and
answer some of these questions with a focused 3D seismic imaging
shoot of approximately 50 square kilometers surrounding the MJ#1
well.
If undertaken, this will not be a short-term exploratory project
with immediate results, and it is one for which Zion will need to
raise additional funding, the success of which is not
assured. A realistic timeframe in which Zion can reasonably
expect to complete this project would be six to twelve months
(following a successful raise) to plan the survey design or layout,
identify and obtain the necessary equipment which will likely have
to be imported, receive the necessary permits, negotiate potential
surface damages, and acquire the data. An interpretation effort
would follow the seismic acquisition. We intend to proceed
soon with a new unit program to try and raise the needed funds for
this and will provide details concerning unit program limits,
parameters, use of proceeds, and other pertinent information.
Zion recognizes the financial and time commitment that our
shareholders have made in supporting us and its need for additional
funding to undertake these efforts. As noted,
there are a number of questions Zion believes need to be further
explored. While there is no guarantee that these exploration
efforts will lead to commercial success, Zion takes its
responsibility to its shareholders very seriously.
Zion expresses appreciation for the continued support of their
shareholders and considers it an honor to represent them.
"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
"That your faith should not stand the wisdom
of men, but in the power of God."
1 Corinthians
2:5
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, our ability to import
into Israel or otherwise obtain
the necessary 3-D imaging and related equipment and appropriate
staff at commercially reasonable rates, our success in obtaining
the necessary licenses and permits needed to undertake the seismic
shoot, the timing of the 3-D seismic survey and the interpretation
of the results, our ability to successfully raise the funds needed
to undertake these exploration efforts, operational risks in
ongoing exploration efforts, 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 Info:
Zion Oil & Gas, Inc. (NASDAQ: ZN)
12655 North Central Expressway, Suite 1000, Dallas, TX 75243
Andrew Summey
Telephone: 888-891-9466
Email: andrew.summey@zionoil.com
www.zionoil.com
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SOURCE Zion Oil & Gas, Inc.