Filed
pursuant to Rule 433
Registration
Statement No. 333-160871
Zion Oil
& Gas Newsletter
September
11, 2009
Dear
Shareholder and/or Friend of Zion...
NASDAQ
- Times Square, New York
Left to
right: Glen Perry (President and Chief Operating Officer), Sandra Green (Chief
Financial Officer), John Brown (Zion's Founder and Chairman of the Board),
Richard Rinberg (CEO), David Aboudi (Outside Counsel)
Last
week, as a result of Zion's switch to the NASDAQ, our Company received good
exposure to the people of New York City, including a prominent display on the
NASDAQ tower in Times Square (as you can see in the photograph
above).
Richard
Rinberg (CEO) being interviewed at NASDAQ
Before
the NASDAQ bell ringing ceremony, I was interviewed at NASDAQ in their CEO Signature Series
Interview. You can view the interview at:
http://investor.shareholder.com/ceosignature/webcast.cfm?mediaid=38563&k=13E5CEE7778A7CD7E9299C8936C1FABA
In
addition, this week, Zion was featured in the Wall Street Journal in an article
concerning the fees paid to list shares on a U.S. stock exchange. Here is the
relevant section from the article:
'Listing
costs were a consideration for Zion Oil and Gas Inc. (ZN), a Dallas-based energy
company that switched its shares from NYSE Euronext to Nasdaq OMX Group
Inc. last week, according to Chief Executive Richard Rinberg.
"Any business in today's environment
is going to look at every cost to see whether one's getting value and to see if
one can save money," said Rinberg, who anticipates a higher profile for Zion at
Nasdaq OMX versus its previous spot on NYSE's junior AMEX
platform.'
However,
the real business of Zion is the drilling operations in Israel, so here is this
week's update.
Drilling Operations on the
Ma'anit-Rehoboth #2 Well
In
particular, three separate items have occupied our attention this past week, as
follows:
(1) The Drilling - The
cement plug was set in the hole, in order to 'sidetrack' the hole, i.e. drill at
an angle, in order to go around any remaining junk in the hole (caused by the
previous failure of a drill bit). To protect the drilling operation from further
complications due to any unrecovered pieces of metal interfering with the drill
bit, we gave up a few meters and then started drilling.
(2) The Geology - With
the current drilling rig, we have a maximum possible well depth of 6,096 meters
(20,000 feet). As our target depth is 'only' approximately 5,500 meters
(approximately 18,000 feet) that looks very acceptable.
(3) Porosity / Fractures
- The information received to date indicates that the Ma'anit-Rehoboth #2 well
has seven zones that warrant testing. But please note that, at this point, there
is no certainty that these zones will produce hydrocarbons or, even if they do,
that the amounts will be commercial. It is still 'early days'.
One of
the major issues for this well relates to the presence and type of 'reservoir rock'. A reservoir
rock is a rock that can both store and transmit oil and/or gas. It should have
porosity, that is, there should be spaces (pores) in the rock that are not
occupied by solids.
The
porosity values that we have seen are towards the low end of the scale, as was
expected at these depths, but fractures in the rock can more than make up for
the low porosity readings.
We await
the results of further testing and analysis from the logging that was carried
out.
Operations on the site of
the proposed Elijah #3 Well
This past
week we continued the site preparation work of digging the cellar, lining the
reserve pit and building the concrete foundation for the heavy rig components.
Almost certainly, at the appropriate time, we will be able to move from the
Ma'anit-Rehoboth #2 well to the site of the Elijah #3 well in a satisfactory and
smooth manner.
(New)
Rights Offering
On
Wednesday, July 29, 2009, Zion filed a registration statement with the
Securities and Exchange Commission (SEC) with respect to a proposed Rights
Offering to its common stockholders.
The
registration statement is currently under review by the SEC.
"In
your good pleasure, make Zion prosper..."
Psalm
51:18
Thank you
for your support of Zion
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, geophysical and
geological data and interpretation, anticipated attributes of geological strata
being drilled, drilling efforts and locations, timing and potential results
thereof and plans contingent thereon and rights offering 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
More
information about Zion is available at www.zionoil.com 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