Filed
pursuant to Rule 433
Registration
Statement No. 333-157007
Inside
the 'Baker Hughes INTEQ' cabin at Zion's Drill Site
Dear
Shareholder and/or Friend of Zion...
Drilling Operations on the
Ma'anit-Rehoboth #2 Well
In
previous updates, I have mentioned the Drilling Rig and Rig Crews (from Aladdin Middle East Ltd in
Turkey) that we brought to Israel, in order to drill our well. In this update, I
would like to focus on the Baker Hughes INTEQ 5-person
team that we have brought into Israel, from Italy.
Baker Hughes INTEQ is among
the world's leading oilfield drilling and evaluation service companies. The
INTEQ part of their name came from combining 'INTEgrated Technology' with
'Quality' and their
technology is just what Zion needed for the Ma'anit-Rehoboth #2
well.
In order
to drill our well 'directionally', we decided to use Baker Hughes INTEQ's AutoTrak
rotary steerable drilling system. This system allows for ‘pushing and pointing'
the drilling bit, rather than only either 'pushing' or 'pointing' the drilling
bit.
The Baker
Hughes INTEQ team has a dedicated cabin at the drill site and the photograph
above shows Paola, the night time MWD (measurements-while-drilling) technician,
beside one of the five computers in the cabin.
Some
members of the team are always on the drill floor of the drilling rig, while the
technician constantly monitors the signals and measurements being relayed from
the drill bit. The technology allows us to know the real-time status of the
drilling, including the exact position of the drill bit and gives us the ability
to steer it, as required.
We really
are using 'cutting edge' technology...
Drilling Progress
Report
Here is
(weekly) Progress Report #2, for the week ended Friday, May 22, 2009. The Report
is from Zion's President and Chief Operating Officer, Glen Perry.
"The
remaining drilling operations on the Ma'anit-Rehoboth #2 well can be divided
into five steps:
(1) Drilling
directionally into the Triassic formation, a depth ofapproximately 15,400 feet
(4,750 meters).
(2) Appraisal
and evaluation of the Triassic formation using electricalwireline well
logs.
(3) Setting
and cementing casing at that depth.
(4) Drilling
deeper to the Permian formation, a depth of approximately18,000 feet (5,500
meters).
(5) Appraisal
and evaluation of the Permian formation using electricalwireline well
logs.
This past
week we have been drilling 'directionally' towards the Triassic formation
targets and have reached a depth of 10,006 feet (3,050 meters).
The
drilling is going according to plan. I am happy to say that there is not much
'news' to report - it's just 'drilling as
usual'."
Rights
Offering
Our
ability to reach the deep Permian formation is dependent on us raising further
funds, so we are holding a Rights Offering. Anyone who was a stockholder on the
record date of May 4, 2009, has the right to purchase some more Zion stock at
$5.00 per share of stock.
If you
are a stockholder, I hope you will exercise your rights to purchase Zion stock
at $5.00 and even consider an over-subscription.
Please be
aware that the
rights offering is set to expire on June 10, 2009. Although we may, at
our discretion, extend that expiration date, if you do want to exercise your
rights before they expire, don't wait until it is too late.
Psalm 51:18 - In your good pleasure, make Zion
prosper...
Thank you
for your continued 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, drilling efforts
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.
Zion Oil
& Gas, Inc. has filed a registration statement (including a prospectus) with
the SEC for the rights 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).
The
securities are offered by prospectus only, and only within those States and
other jurisdictions in which the securities may be sold, and this announcement
is neither an offer to sell nor a solicitation of any offer to buy in any state
or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities of any such
state or jurisdiction.
More
information about the offering is available at www.zionoil.com. A copy of the
prospectus can be obtained on request, by calling toll free 1-888-TX1-ZION
(1-888-891-9466) or by contacting Kim Kaylor at Zion Oil & Gas, Inc., 6510
Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610; email:
dallas@zionoil.com