Filed
pursuant to Rule 433
Registration
Statement No. 333-160871
Zion Oil
& Gas Newsletter
October
9, 2009
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Dear
Shareholder and/or Friend of Zion...
Here is
an update of our progress during the past week.
Operations on the
Ma'anit-Rehoboth #2 Well
Zion
submits periodic reports to Israel's Petroleum and Mining Commissioner, Dr.
Yaakov Mimran. In our most recent report on our Joseph license, submitted this
week, we noted that:
The
Company drilled the Ma’anit-Rehoboth #2 well to a total depth of 5,460 meters
measured depth. The rig was released on October 2, 2009, and the
operations are suspended until the Lapidoth Franks 750 rig is available for
completion operations. Currently the Lapidoth Franks 750 rig is expected in
early December 2009.
Although,
there is a possibility that the Lapidoth Franks 750 rig will be available
sooner.
So, we
look forward to testing the seven zones that warrant completion testing. Four of
the zones are in the Triassic seen in the Ma’anit #1 and three in the deeper
hole drilled in the Ma’anit Rehoboth #2. Meanwhile, we continue to
analyze the results of the logging together with the other
scientific data that we collected during the drilling of the well and we
continue to update our scientific database.
Preparations at the site of
the Elijah #3 Well
On
Thursday, October 8, 2009, I visited the site of the Elijah #3 well, together
with Zion's Chief Financial Officer (CFO), Sandra Green. The site is a hive of
activity; the equipment is arriving fast and Aladdin Middle East's (AME's) 2,000
horsepower rig is being rigged up.
Here are
some of the photographs that I took at the site:
The sign
by the road notes (in Hebrew):
Zion
Oil & Gas, Inc.
Oil
Exploration License #334.
Drilling
of Well Elijah #3
Company
Registration #560019127
A
forklift truck moves a container into position
A crane
lifts a 30 ton container into position
Zion's
CFO, Sandra Green in discussion with the site foreman
The
middle of the picture shows the construction of the mast of the drilling
rig
Four of
AME's Turkish rig crew installing some of the 1,000 tons of
equipment
The mast
and base of the drilling rig are being assembled
'Spudding'
(that is, the start of drilling operations) of the Elijah #3 well is expected on
approximately October 20, 2009, and the well operations are expected to last
approximately six months.
Rights
Offering
We have
been advised by the Securities and Exchange Commission (SEC) that it has no
further comment on our recently filed amendment to the registration statement.
We have therefore requested that the registration statement be declared
effective 'as soon as
possible' and we anticipate that the registration statement will be
declared effective soon.
Once the
registration statement has been declared effective, we will give notice of the
record date and the rights offering can begin. Everyone recorded in the official
records as a stockholder on the record date has the right to participate in the
rights offering.
The
proposed rights offering will offer a maximum of 3.6 million shares of stock at
$5.00 for each share of stock. Should the rights offering be fully subscribed,
the company will receive gross proceeds of $18 million.
Under the
rights offering, stockholders have the right to purchase twenty three (23)
shares of stock for every one hundred (100) shares of common stock owned on
the record date. This is identical to 0.23 subscription
rights for each share of common stock owned on the record date.
If you
were among the many hundreds of our stockholders who did not receive as many
$5.00 shares as you subscribed for in the earlier rights offering, this is your
'second chance' opportunity. Obviously, this offer is open to everyone who is a
stockholder of record on the record date.
Television &
Media
(i) DayStar TV (with approximately
216 Million Viewers) have asked Zion's Founder and Chairman of the Board, John
Brown, to participate in their flagship show, 'Celebration',
on Thursday, October 15th, 2009.
So, you
may want to watch Daystar TV's flagship show, 'Celebration',
airing between 11:00 a.m. and 12:00 noon on Thursday, October 15th. It is a
'live' show featuring Marcus and Joni Lamb and, this time only, of course,
Zion's John Brown.
(ii)
The Jewish Voice television
show (that airs on most major Christian networks and independent
Christian television stations) will broadcast a discussion between Steve
Spillman and Jonathan Bernis on Israel's search for oil. Click here for a full station
listing and viewing times for The Jewish Voice.
"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, 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
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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
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