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| 8-K - ZION OIL & GAS INC | v204588_8k.htm |
Zion Oil
& Gas Newsletter
December
3, 2010
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Dear
Shareholder and/or Friend of Zion
Zion's
CEO, Richard Rinberg, at the Knesset on Tuesday, November 30, 2010
This past
week, representing Zion Oil & Gas, I visited the Knesset to attend a meeting
of the Economic Affairs Committee. There was a presentation by Noble Energy
regarding their Tamar gas discovery, offshore Israel. There is much discussion
in Israel regarding royalties and taxation as applied to the oil and gas
industry and, of course, there are opposing sides.
The
government would like a larger share of the economic pie resulting from any oil
or gas finds and those in the oil and gas industry would prefer the current
situation to remain unchanged, so that multi-year projects can be planned and
properly assessed for economic viability. The current uncertainty does not help
either side, so we hope that the royalty and taxation issue will be resolved
without too much delay.
Also
present at the Knesset Economic Affairs Committee meeting was an Israeli company
drilling onshore Israel, but to the south of Zion's exploration areas. Just this
week, they issued an estimate, based on two reports (by international firms
Baker-Hughes and Greensand), of the amount of oil that they claim to have
discovered onshore Israel. They reported that have had already sold 6,000
barrels of oil, claim proven reserves of 2.2 million barrels of oil and possible
reserves of up to 56 million barrels of oil in their field.
At Zion
Oil, with world class discoveries of gas offshore and now a recent credible
discovery of oil onshore Israel, we are eager to reach the drilling targets of
our current well. As you can read below, we are drilling at a depth of 3,482
meters (11,424 feet) and believe that we are now drilling within our secondary
target (the Triassic). To confirm our belief, we are collecting samples for
biostratigraphic testing. However, our primary target is the Permian and, at our
present rate of drilling, we should reach Permian lithology (i.e. Permian age
rocks) early in 2011.
The
Geophysical Institute of Israel team visit the Ma'anit-Joseph #3
well
On
Wednesday, December 1, 2010, a team from the Geophysical Institute of Israel
(GII) visited our Ma'anit-Joseph #3 drill site. Having gathered seismic data for
us, they were interested to learn how our drilling was proceeding and view our
operations.
In order
to update you, here is this week's operational update
Drilling
Operations at the Ma'anit-Joseph #3 Wellsite
The
drilling rig at the Ma'anit-Joseph #3 wellsite on December 1, 2010
On August
26, 2010, drilling operations began on the Ma'anit-Joseph #3 well, in our Joseph
License area, onshore Northern Israel.
During
the past several weeks, we have been steadily drilling an 8-1/2”
hole. Aside from routine bit changes due to normal wear and testing
of the blow out prevention (BOP) equipment, drilling has been proceeding without
interruption.
As of
Friday December 3, we have achieved a depth of approximately 3,482 meters
(11,424 feet). We will continue to drill an 8-1/2” hole to an
approximate depth of 4,380 meters (14,370 feet) at which point we will obtain
the next set of open-hole logs and set the next casing string.
Rights
Offering
Our
stockholders have already subscribed to purchase approximately 3,370,000 Units
of Zion's securities from the approximately 3,800,000 Units available under the
offering. In other words, our stockholders have already subscribed to purchase
almost 90% of the Units available in the rights offering.
As I
noted in our press release of November 19th, in order to be fair to all and
allow every qualifying stockholder, whatever the size of their holding, the
chance to exercise their rights, we decided to extend the rights offering to
5:00 p.m. Eastern Standard time on December 15, 2010. For many
reasons, it is highly unlikely that we will extend beyond December
15th.
You may
wish to review the Frequently Asked Questions (FAQs) relating to the rights
offering on our website at: www.zionoil.com/investor-center
If
you wish to participate in Zion's Rights Offering, please do so without
delay.
If you
have a query, please call Zion's office (toll free): 1-888-TX1-ZION or
1-888-891-9466
Chanukah
On
Wednesday night, December 1st, the festival of Chanukah arrived. The festival,
also known as the Festival of Lights, is an eight-day Jewish holiday
commemorating the rededication of the Second Temple in Jerusalem, at the time of
the Maccabean Revolt of the 2nd century BCE.
Chanukah
also commemorates the "miracle
of the oil". At the re-dedication following the victory of the Maccabees
over the Seleucid Empire, there was only enough consecrated oil to fuel the
eternal flame in the Temple for one day. However, miraculously, the oil burned
for eight days, which was the length of time it took to press, prepare and
consecrate fresh oil.
The
festival is observed by the kindling of the lights of a Menorah - one additional
light on each night of the holiday.
As you
can see from the photograph at the top of this update (taken at an inner
courtyard of the Knesset) the Menorah, symbolizing 'light' is an important
symbol of Israel.
Of
course, at Zion, all of us are praying for a current day 'miracle of the
oil'...
In the
spirit of Chanukah, at the request of Zion's Founder and Chairman of the Board,
John Brown, Zion’s office staff in Dallas will have Rabbi Zakon stopping by to
teach about this Jewish holiday. There will be gifts of Menorahs, Candles and
Draydels (spinning tops) with chocolate coins inside, for both staff and
guests.
"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, anticipated
attributes of geological strata being drilled, the presence or recoverability of
hydrocarbons, the sufficiency of cash reserves, ability to raise additional
capital, 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.
NOTICE:
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 will send you the prospectus if you request it by calling toll free
1-888-TX1-ZION or 1-888-891-9466.
Contact
Information
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More
information about Zion is available at www.zionoil.com
or by
contacting Mike Williams at
Zion Oil
& Gas, Inc.
6510
Abrams Rd., Suite 300,
Dallas,
TX 75231
telephone
1-214-221-4610
email:
dallas@zionoil.com