Filed
pursuant to Rule 433
Registration
Statement No. 333-157007
Glen
Perry, President and Chief Operating Officer
Drilling Operations on the Ma'anit-Rehoboth #2
Well
We are
now drilling at 13,780 feet, three-quarters of the way to our final target
drilling depth on our well, at approximately 18,000 feet in the (deep) Permian
geological layer. So, this week, I want to highlight Zion's President and Chief
Operating Officer, Glen Perry, as he is the key person responsible for bringing
together, from all over the globe, all of the people and equipment. As Chief
Operating Officer, he has the job of ensuring that the well gets drilled
properly and 'on budget'.
Glen gained
a Bachelor of Science degree from the University of Tennessee and a Masters
degree in Petroleum Engineering from the University of Texas. Early in his
career he worked at Exxon in their drilling operations. After that, he was an
officer and director at Prairie Producing Company, an independent oil company in
Louisiana and Texas. (Prairie was subsequently bought by Unocal). Glen was
responsible for the design, construction and operation of production facilities,
pipelines, and plants.
From 1993
until 1998 Glen worked for National Petroleum Limited in Geneva, Switzerland as
manager of project development, seeking viable projects in the former Soviet
Union and directing an oil and gas project in the Republic of Georgia.
Immediately prior to joining Zion, he was a consultant to Delek Drilling, Ltd.,
with respect to the major gas discoveries offshore Israel.
I do
admit that, from time to time, there can be a language difficulty. Glen is from
Tennessee (the Volunteer State) and although the official language is English,
he does sometimes lapse into Tennessean. To a suggestion that he doesn't agree
with, he has been heard to utter the words: "That dog don't
hunt."
In any
event, he certainly knows how to drill for hydrocarbons. In order to deal with
some of the very hard rock that we needed to drill through, Glen arranged for
Zion to purchase a US$15,000 diamond drilling bit called a PDC bit. (PDC stands
for Polycrystalline Diamond Compact.) The PDC bit is a solid metal drilling bit
with no moving parts; it has metal cutters on the bottom that are faced with
blanks containing industrial diamonds, designed to shear away the rocks to
produce cuttings. These are an expensive type of drilling bit but
they can drill more footage than any other type of bit.
Of
course, it is critical to know when a drilling bit has worn out. This is where
experience is required. A worn bit can be detected from the change in noise that
the drillpipe makes on the rig floor, as well as a decrease in the rate of
penetration.
I am
happy to note that Zion does have experienced and competent people in all areas
of our business.
Here is
(weekly) Progress Report #5, for the week ended Thursday, June 11, 2009, from
Glen.
"This
past week our drilling reached a depth of approximately 13,780 feet (4,200
meters).
As in
previous weeks, the drilling is proceeding very well indeed and we are slightly
ahead of schedule. To date, our maximum drilling rate has been approximately 35
feet (10.7 meters) per hour and we have been averaging approximately 15
feet (4.6 meters) per hour."
Rights Offering
The
rights offering was originally scheduled to expire on Wednesday, June 10, 2009,
however, on that day, we announced that we were extending the rights offering by
fourteen days, to Wednesday, June 24,
2009.
The
preliminary outcome of Zion's rights offering, as of the close of business on
June 10, 2009, indicated a total subscription of approximately 3.6 million
shares (including over-subscription) for gross proceeds of approximately $18.0
million.
I noted
in our press release announcing the extension that: "I am very pleased that the response to the stock rights
offering has been so
positive, but some
stockholders may have experienced a delay in receiving their subscription
materials, so we thought it appropriate to extend the deadline for the rights
offering, in order to give all of our shareholders adequate time in which to
participate."
So,
everyone who was a stockholder on the record date of May 4, 2009, can still
exercise their rights and purchase Zion stock at $5.00 per share of stock or
even consider an over-subscription.
If you
have not yet exercised your rights or want to oversubscribe, now is the time to
act.
Annual Meeting of Shareholders
Our
Annual Meeting is at 2:00
p.m. on Tuesday, June
16th 2009 at:
The Westin Park Central Hotel,
12720 Merit Drive, Dallas, TX 75251
You are most welcome
(whether you are a shareholder or not) to attend the meeting and the reception
following the meeting.
(Please
note that, for those attending the meeting, we have requested reduced parking
costs at the hotel: for self parking $5 instead of $12 and for
valet parking $10
instead of $20. For overnight self parking $12 and overnight valet $20. There is
also a complimentary open lot just by the hotel.)
I look
forward to seeing you, on Tuesday.
Exult
and shout for joy, O Zion dweller
for the Holy One of Israel is great in your
midst.
Isaiah
12:6
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