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Zion Oil
& Gas Newsletter
January
8, 2010
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Dear
Shareholder and/or Friend of Zion...
Here is
my first update to you, in 2010, so:
May
2010 bring you health, happiness and success.
All of us
share the same deep desire to achieve success with our goal to find oil and gas
onshore Israel.
In my
home, hangs the above portrait of Theodor Herzl - the Founder of the modern
State of Israel. On the metal frame is engraved, in Hebrew, the words he wrote
in 1902: 'Im tirtsu, ein zo
agada' (If
you will it, it is no dream.)
Everything
worthwhile starts with the desire to reach beyond the present, for something
worth the huge effort and struggle.
Herzl
also wrote: 'Dream and deed
are not as different as many think. All the deeds of men are dreams at
first...'
I hope
that this year we will see the realization of our hopes and dreams in finding
oil and gas onshore Israel.
We have
excellent equipment, we have an expert team and we have the determination to
succeed.
So, here
is this week's operations update.
Drilling Operations at the
Elijah #3 Well
The
2,000 horse power drilling rig, at the Elijah #3 site
In my
update to you on Friday, December 18, 2009, I noted that:
...the Elijah #3 well has been cased
from the surface down to 6,706 feet (2,044 meters) and, as of this afternoon, we
are testing the blowout preventer system in preparation to drill deeper
(presently in Upper Jurassic carbonates) as planned.
For the
period from 'spudding' the well (that is 'beginning drilling operations') to
December 31, 2009, we drilled to a depth of approximately 9,186 feet (2,800
meters), at an average rate of penetration of approximately 131 feet (40 meters)
per day. We have made good progress and are 'on schedule'.
During
the past three weeks, we continued drilling at an excellent rate and as of this
morning, the Elijah #3 well has been drilled to a depth of 10,210 feet (3,112
meters).
We are
currently drilling in the Asher Volcanic Complex, composed of tuffs, weathered
basalts, non-weathered basalts, red shales and red and tan
mudstones.
The Ma'anit-Rehoboth #2
Well
The
Ma'anit-Rehoboth #2 Well Site, showing the well head
The last
update (on December 18, 2009) is valid, but for ease of reference, here are the
main details regarding this well:
By mid-September 2009, we had drilled the Ma'anit-Rehoboth #2 well to a depth of 17,913 feet (5,460 meters). The well penetrated a number of geologic formations that have been preliminarily deemed to have hydrocarbon potential.
We used a
workover rig for swabbing operations and retrieved a small quantity of crude oil
that came from the open hole section below the last casing point at 15,830 feet
(4,825 meters). A sample of the crude oil is being analyzed as part of the
overall technical evaluation now underway.
We are
unsure as to whether we have made a discovery of any hydrocarbon reservoir (and
even if we have, we know nothing regarding its possible commercial
viability).
We
continue to evaluate the steps that we can or should take in order to test the
identified zones of interest individually. At this stage, it is critical that we
use the correct equipment and utilize personnel with the proper training and
expertise.
To that
end we are carefully evaluating recommendations by our engineering staff and the
availability of certain specialist equipment in Israel. So we thank you, in
anticipation, for your patience while we work through the various
recommendations.
As there
is a great deal of technical evaluation work to be completed and we need to
source some specialist equipment and services, it is currently anticipated that
we will not resume testing procedures on the Ma'anit-Rehoboth #2 well until
after March 2010.
The Issachar-Zebulun Permit
Area
We have
been reprocessing all of the existing seismic and I note that there is extensive
coverage over most of the license.
However,
in addition, we have been negotiating to sign a contract and have now verbally
agreed with the Geophysical Institute of Israel to acquire, in March 2010,
approximately 30 kilometers of field seismic, in the permit area.
Reprocessing
the existing seismic will help us to better define the geological structures,
while the 30 kilometers of newly acquired seismic line will help us to better
define the Jordan Valley River stratigraphy.
In
conclusion, we have much work ahead of us in 2010, but are optimistic that we
are 'closing in' on our goal.
"In your good pleasure, make Zion
prosper..."
Psalm
51:18
Thank you
for your support of Zion, and
Shalom
from Israel
Richard
Rinberg
CEO of
Zion Oil & Gas, Inc.
www.zionoil.com
FORWARD
LOOKING STATEMENTS: Statements in this communication that are not historical
fact, including statements regarding Zion's planned operations, geophysical and
geological data and interpretation, anticipated attributes of geological strata
being drilled, drilling efforts and locations, the presence or recoverability of
hydrocarbons, timing and potential results thereof and plans contingent thereon
and rights offering 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.
Quick
Links...
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Contact
Information
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More
information about Zion is available at www.zionoil.com or by contacting Michael
Williams at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX
75231; telephone 1-214-221-4610; email: dallas@zionoil.com
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