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![]() www.zionoil.com
John Brown, Zion Oil & Gas,
Inc., Founder and Chairman
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In
1983, during a visit to Israel, John Brown, spiritually inspired by
scripture (1 Kings 8:41-43), dedicated himself to finding oil and gas in
Israel; starting the process that led to the Joseph Project. During the
next seventeen years he made numerous trips to Israel, hired oil and gas
consultants in Israel and Texas, met with Israeli government officials,
made direct investments with local exploration companies, and assisted
Israeli exploration companies in raising money for oil and gas exploration
in Israel. This activity led Mr. Brown to form Zion Oil & Gas, Inc. in
April 2000.
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From
January 2007 to September 1, 2009, Zion Oil & Gas, Inc. was publicly
traded on the NYSE Amex, (previously known as the American Stock Exchange)
under the symbol “ZN”.
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On
September 2, 2009, Zion switched the listing of its common stock from the
NYSE Amex to the NASDAQ Global Market (NGM). Zion’s common stock continues
to trade under the symbol “ZN”.
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Zion
holds two Petroleum Exploration Licenses in northern Israel - the 79,000
acre Asher-Menashe License and the 83,000 acre Joseph License for a total
of 162,000 acres on the head of
Joseph.
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Zion
also holds a Preliminary Permit with Priority Rights on 165,000 acres -
the Issachar-Zebulun Permit.
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Zion
holds 100% of the working interest in its licenses and permit, so the
company is responsible for 100% of the costs of exploration and
production. 12.5% of Zion’s gross proceeds from the sale of oil and gas
belong to the State of Israel as a royalty interest. (Tithe, Malachi
3:10)
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Zion has
already transferred a royalty of 6%, equally, into two
charitable foundations it has established, one in Israel and one
in Switzerland. (Offerings, DEUT
16:17)
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In
2005, Zion drilled the Ma'anit #1 well on the Ma'anit structure in the
Joseph License area. Drilling breaks and shows of hydrocarbons were
recorded from 12,000 to the total depth of 15,500 feet, but it was
determined that the well was not commercially viable. The Ma'anit
structure encompasses 7,400 acres.
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In May-September 2009, the
Company drilling the Ma’anit-Rehoboth #2 well to a depth of approximately
18,000 feet, utilizing a 2,000 horsepower drilling rig (the “AME Rig”) and
rig crews. Small quantities of crude oil were produced, but the Company
determined that commercial quantities of hydrocarbons were not present in the
well, so it was
temporarily suspended, pending the drilling of the planned
Ma'anit-Joseph #3 well, as the Ma'anit-Rehoboth #2 well may be used as a
re-entry point for a future new
well.
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In
October 2009, Zion commenced drilling the Elijah #3 well on its
Asher-Menashe License. As of January 2010, the Company had drilled the
Elijah #3 well to a depth of 10,938 feet. In February 2010, the Company
temporarily suspended drilling operations in the well following
unsuccessful efforts to retrieve a stuck pipe. During 2010, we plan
to acquire field seismic in the vicinity of the Elijah #3 well and intend
to resume drilling activity in that well at the earliest appropriate
time.
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In May 2010, Zion commenced a US$ 50 million rights offering.
Zion plans to use the proceeds: (a) to purchase a 51% interest in a new
company (Zion Drilling, Inc. that will own a 2,000 horsepower drilling
rig), (b) to drill further 'deep' exploration wells on Zion's licenses in
Israel (in continuation of Zion's oil and gas exploration efforts) and (c)
for general corporate purposes.
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In May 2010, Zion contracted to acquire further
field seismic on its petroleum exploration areas. The seismic
acquisition is scheduled to start in June
2010.
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In August 2010, Zion plans to 'spud' (that is, start
drilling) a new well, the planned Ma'anit-Joseph #3
well.
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Visit our website at www.zionoil.com for updates on our drilling
progress.
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