Dear
Shareholder and/or Friend of Zion...
Drilling Operations on the
Ma'anit-Rehoboth #2 Well
We are
now drilling at approximately 15,100 feet, 84% of the way to our final target
drilling depth on our well, at approximately 18,000 feet in the (deep) Permian
geological layer.
The
picture above - An angel's
view of the Ma'anit-Rehoboth #2 drillsite - is an aerial
photograph of the Ma'anit-Rehoboth #2 wellsite.
Just in
case you assume that we are using Zion's precious cash resources to hire
expensive planes and aerial photographers, you should know that Glen Perry,
Zion's President and Chief Operating Officer, met a pilot who was so fascinated
by Zion's exploration work that he offered to take some photographs next time he
was 'in our area'...
As you
can see from the resulting photograph, it was a clear day over Kibbutz Ma'anit
and the picture clearly shows the large scale of Zion's operations. You can get
an idea of scale from the few cars on the site.
I'll pick
out some of the photograph's main features for you:
(a) in
the center, the 2,000 horsepower drilling rig
(b) 75%
of the way up the rig mast, is a white rectangle - that's a small platform,
called the 'monkeyboard', and is ~ 80 feet above the drill floor
(c) the
(yellow) main gate is at the bottom left, and the emergency back gate (also
yellow) is at the top right
(d) in
front of the rig, at the bottom of the pipe ramp are pieces of steel casing to
go into the well
(e) just
to the left of the rig are the (diesel) fuel tanks that power the
rig
(f) to
the right of the rig is the reserve mud pit
(g) the
cabins on the right of the site (next to the parked cars) are for the drilling
manager, the mud logging, the directional drillers, the rig crew and various
storage cabins.
(h) many
of the 'red dots' on and around the rig are members of the rig
crew.
When I
saw the photograph, I was reminded of Nanci Griffith singing 'From a
distance':
"From a distance,
there is harmony, And it echoes through the land.
From a distance we are instruments,
Marching in a common band."
Drilling Progress
Report
Here is
(weekly) Progress Report #6, for the week ended Thursday, June 18, 2009, from
Glen.
"This
past week our drilling reached a depth of approximately 15,100 feet (4,600
meters).
As in
previous weeks, the drilling is proceeding very well indeed and we are 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
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 took place, at the Westin Park Central Hotel, last Tuesday (June
16, 2009). I really enjoyed meeting the stockholders who attended both the
meeting and the
reception that followed. We will put a copy of the Chief Executive Officer's
Report, the Chief Operating Officer's Report and a 'highlights video' on our
website as soon as we can.
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 if you want to hear
Nanci Griffith singing 'From a distance', please click on this link... and
enjoy
http://www.youtube.com/watch?v=nKpBU6H1k-Y&feature=related
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