Zion Late Summer Update

ZION LATE SUMMER UPDATE

Wednesday, August 27, 2014

Dear Shareholder and/or Friend of Zion:

This is an update of noteworthy events that have occurred since our last newsletter. Between updates, please consult our website, press releases, and our SEC filings to keep up with company developments.

Megiddo-Jezreel and Jordan Valley License Merger

Israel’s Petroleum Commissioner recently notified Zion that the Petroleum Council, a 10-member board that he chairs, has recommended approval of our application to merge the southernmost portion of our Jordan Valley License into our Megiddo-Jezreel License.

Under Israeli law, this Petroleum Council exists to review, advise, and recommend to the Minister of Energy and Water Resources on a variety of topics including exploration licenses and transfers of exploration rights. The recommendation now goes to Israel’s Minister of Energy and Water Resources for final approval.

We believe that the almost 99,000 acre merged Megiddo-Jezreel and Jordan Valley License appears to possess the key geologic ingredients of an active petroleum system with significant exploration potential. Zion is now focused 100% on this merged Megiddo-Jezreel License as we develop key leads into drillable prospects.

New Seismic Acquisition Program Completed

Last week, the Geophysical Institute of Israel (GII) finished acquiring about 42 kilometers of new Vibroseis seismic data for Zion. Seismic data is a key tool to allow geoscientists to better visualize the rock formations under the earth.

It is akin to getting a sonogram of the earth. The data will then be computer processed by both GII and Eskaton Seismic (based in the U.S.) and interpreted by Zion’s team of geologists, geophysicists, and outside geoscience consultants.

Zion’s Summer 2014 Vibroseis Seismic Data Acquisition Caravan

Zion’s Summer 2014 Vibroseis Seismic Data Acquisition Caravan

Liat R. Shindler (Zion geophysicist) in front of 30 ton Mertz Vibroseis Vehicle

Liat R. Shindler (Zion geophysicist) in front of 30 ton Mertz Vibroseis Vehicle

Once we process and interpret this new seismic data, we will choose the precise and best spot(s) to drill our next well(s). We continue to work toward drilling our first well, the Megiddo-Jezreel #1, to a depth of approximately 13,000-15,000 feet next summer.

Seeking the LORD’s blessings at the likely future site of the Megiddo-Jezreel #1 well.

Seeking the LORD’s blessings at the likely future site of the Megiddo-Jezreel #1 well.

Environmental Impact Assessment

A critical prerequisite before obtaining a drilling permit for our next well is to conduct an extensive environmental assessment of the area where we plan to drill. Geo-Prospect, an Israeli geological, environmental, and planning company, continues to make good progress with our environmental impact study which is expected to take several months to complete. Study topics required by law include ecology, hydrology/water, archaeology, acoustics, air quality, hazardous materials, pollution, land reclamation, drilling methods, risk mitigation, etc.

DIRECT STOCK PURCHASE PLAN

Did you know you can invest directly with Zion online with no need for a broker?

Our simple step-by-step online system will help you enroll and invest with confidence.

GO HERE to learn more about investing.
GO HERE to learn more about our unit offering.
GO HERE to learn how current shareholders can add to their existing investment.

Remember: Our current unit offering continues through December 31, 2014.

ONE FINAL NOTE:

All Zion employees stand in solidarity with Israel during these difficult times and we will continue to pray for safety, security, and peace in Israel!

“You shall not be afraid of the terror by night, Nor of the arrow that flies by day,
Nor of the pestilence that walks in darkness,
Nor of the destruction that lays waste at noonday.”

Psalm 91:5-6 but see all of Psalm 91

“Pray for the peace of Jerusalem: May they prosper who love you.”

Psalm 122:6

What are your thoughts? Questions? Please let us know in the comment section below.