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| 8-K - ZION OIL & GAS INC | v210094_8k.htm |
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Zion Oil
& Gas Newsletter
February
4, 2011
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Dear
Shareholder and/or Friend of Zion
Since my
previous update to you, during the past two weeks, Zion has made further notable
progress.
We have
now drilled the Ma'anit-Joseph #3 well to approximately 16,430 feet and are
continuing to drill deeper, as you can read below. If you place eleven Empire State
Buildings on top of each other, you will reach, almost exactly, a height of
16,000 feet.
The
Ma’anit-Joseph #3 well is already one of the deepest wells ever drilled onshore
Israel. Our Exploration Manager, Stephen Pierce, advises that, almost certainly,
stratigraphically (i.e. with regard to the age of the sedimentary rocks in the
rock strata), in Northern Israel, no-one has ever drilled as deep as our current
well has already been drilled.
We
believe that, as early as next week, we may begin to approach the Permian
geological layer; although we currently project that we won't reach the well's
target depth until approximately mid-March 2011.
I am
pleased to report that Victor Carrillo (who joined Zion's Board of Directors in
September 2010) has recently joined Zion's full time management staff as
Executive Vice President. To read the full press release, please click
here.
Left
to Right: Victor Carrillo and Richard Rinberg (CEO)
Victor is
a petroleum geologist and geophysicist and has over twenty years of experience
in the oil and gas industry. Until December 2010, he was Chairman of the Texas
Railroad Commission (the agency that oversees the oil and gas, pipeline and
surface mining industries in Texas).
Meeting
with Israel's Petroleum Commissioner, in Jerusalem.
Left
to Right: Bill Ottaviani, Victor Carrillo, John Brown and Commissioner Dr.
Ya'acov Mimran
On
Wednesday, January 26, 2011, John Brown (Zion's Founder and Chairman of the
Board), Richard Rinberg (CEO), Bill Ottaviani (President and COO) and Victor
Carrillo (Zion's new Executive Vice President) met with Israel's Oil & Gas
Commissioner, Dr. Ya'acov Mimran, and his team, at the Commissioner's office in
Jerusalem. We updated the Commissioner on our recent operations and discussed
Zion's future plans.
Turning
to financial matters, on January 3, 2011, we issued a press release concerning
our ZNWAW warrants. To
read the full press release, please click
here.
If you
hold ZNWAW warrants, you
should carefully review both the press release and my comments
below.
Finally,
here is this week's operational update:
The
Ma'anit-Joseph #3 Wellsite (on January 25, 2011)
Drilling
Operations at the Ma'anit-Joseph #3 Wellsite
On August
26, 2010, drilling operations began on the Ma'anit-Joseph #3 well, in our Joseph
License area, onshore Northern Israel.
Following
full recovery of the logging tool, as noted in our last update, normal well
operations resumed. In the past two weeks, the cement bond integrity of the
recently installed 7” casing was successfully tested and, as of February 4,
drilling of the 6-1/8” hole has reached approximately 5,008 meters (16,430
feet).
Our
ultimate target depth is approximately 5,900 meters (19,350 feet).
As we
drill deeper, we continue to collect rock samples, circulated to the surface
after being cut by the drill bit. These samples are analyzed for
biologic markers (e.g. microscopic fossils) that are used to determine the type
of geologic formation being drilled.
Our
geologists note that at our present drilled depth we appear to be in the lower
Triassic formation as expected. Of significance, just below the
Triassic lies the Permian formation, which is our primary objective for this
well.
Opportunity
regarding Zion Warrants with the trading symbol: ZNWAW
In
January 2009, Zion completed a follow-on offering and issued approximately
666,000 warrants with a $7.00 exercise price.
In order
to be fair to all of Zion's investors, raise significant additional working
capital for Zion's exploration and development activity in Israel and simplify
our capital structure, we have temporarily reduced the exercise price of the
warrants trading under the symbol ZNWAW to $4.00 (from the $7.00 exercise price
provided by the original terms of the Warrants).
The
reduced exercise price applies to all of Zion's currently outstanding Warrants
that trade under the symbol ZNWAW.
The $4.00
exercise price on ZNWAW
warrants will be available until 5:00 p.m. Eastern Time on March 7, 2011,
but please note that after March 7, 2011 and through January 31, 2012, the
scheduled expiration date of the ZNWAW warrants, the ZNWAW
warrants will be exercisable at the original exercise price of $7.00 per
warrant, after which date they will expire with no value.
You can
find details regarding the offer on Zion's website. Please click
here.
If you
hold the ZNWAW warrants,
please consider this opportunity.
"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 (1-888-891-9466).
Contact
Information
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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
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