Zion Oil & Gas, Inc. :: Oil in Israel. (888) 891-9466.

Zion Oil Frequently Asked Questions (FAQ) and Public Question Forum

We have prepared this page to allow our supporters and shareholders to ask questions and get thoughtful answers from us. We understand there is a lot of distortion and misinformation about Zion Oil & Gas on the internet. This page will help you get clear answers and get accurate information.

How to use this page:

1. Review the questions and answers below.
2. Ask your question in the comment field if you do not find the answer.
3. We will review your questions and answer as quickly as possible.

Note: We may not post all questions since there are likely to be repetitive questions or questions that we are not legally able to answer in this forum. If you wish to view investment related questions, please click HERE.

> MOST OFTEN ASKED QUESTIONS AND IMPORTANT QUESTIONS
Zion is dedicated to exploring for oil and gas onshore Israel and is 100% focused on its Megiddo-Jezreel License, a large area south and west of the Sea of Galilee that includes the Jezreel and Megiddo valleys. This license gives Zion the exclusive right to explore in an area of approximately 99,000 acres that appears to possess the key geologic ingredients of an active petroleum system with significant exploration potential. Zion’s latest information on ongoing operations can be found on their website: https://www.zionoil.com/updates

Zion’s common stock trades on the NASDAQ Global Market under the symbol “ZN”.

All of this information is contained within the filings with the SEC. Please know that stock issuances do not mean executive staff actually exercise and/or sell the shares. Much of the rumors on the internet about how much the executive staff makes are exaggerated.

1. It is essential to understand that reportable compensation does not equal W-2 earnings.

2. Salary and Bonus represent less than 49% of all reportable compensation.

3. Stock options awarded, regardless of whether those options were exercised, represent over 38% of all reportable compensation.

4. It is important to note that there has been a company-imposed blackout period, restricting the sale or purchase of stock for all employees, implemented on May 15, 2017, which remains in effect to date.

As we previously disclosed, the Securities and Exchange Commission (“SEC”) first informed Zion of a non-public, fact-finding inquiry by subpoena for production of documents received on June 21, 2018, before which Zion had no formal or informal communication with the SEC regarding this matter.

The SEC has asserted no accusation of wrongdoing nor have they expressed any negative opinion of any person within Zion. Zion continues to fully cooperate with and work with the SEC.

Following Zion’s disclosure of the SEC investigation, a putative class action (the “class action”) Complaint was filed against Zion, Victor G. Carrillo, the Company’s former Chief Executive Officer, and Michael B. Croswell, Jr., the Company’s Chief Financial Officer, in the U. S. District Court for the Northern District of Texas. An Amended Complaint was filed on January 22, 2019, and we anticipate filing a Motion to Dismiss on March 13, 2019. Four shareholder derivative suits were filed after the class action, one in state court in Dallas, Texas, and three in federal district court in Delaware. We believe these claims are frivolous and without merit, and we are waging a vigorous defense.
Mr. Carrillo resigned effective September 1, 2018. Here is the resignation letter we filed with the SEC in an 8-K – CLICK HERE.
Zion has been a publicly reporting company since 2007 whose stock has been listed on Nasdaq since 2009, in which time it has filed, as required, audited annual reports on Form 10-K and quarterly reports on Form 10-Q, in compliance with all relevant SEC and Nasdaq rules. We would ask that you refer to those filings to help answer any questions you may have about Zion.
Nasdaq companies whose shares are listed on Global Market and who fail to comply with the required minimum closing bid price of $1 for 30 consecutive trading days will ordinarily receive a so-called deficiency notice. Once such notice is received, the Company will automatically have 180 days in which to regain compliance with the $1 minimum bid price. Compliance is regained by trading at above the $1 minimum bid price for 10 consecutive trading days, subject to Nasdaq requiring a longer trading period if it determines that this is necessary in order to establish long-term compliance with the minimum closing bid price.
Larger oil and gas exploration companies may choose to conduct extensive analytical pre-drilling testing such as 3-D seismic imaging, the drilling of an expendable “pilot” well or “stratigraphic test” to collect data (logs, cores, fluid samples, pressure data) to determine if drilling a well capable of producing oil or gas (full completion with casing and well testing) is justified. The use of pilot or stratigraphic tests is often used in areas where there is little or no offset well data, like Israel, where our exploration license area is located.

While 3-D seismic imaging data can be more useful than 2-D data in identifying potential prospects, its acquisition, and processing costs can potentially be multiples greater than that for 2-D data.

In addition to using 2-D seismic technology prior to drilling, we have historically also utilized gravity and magnetic data, built cross-section maps from offset wells and utilized geophysical analysis from similar geologic targets. We believe that the additional months, delays and costs associated with more extensive pre-drilling testing typically undertaken by larger oil and gas exploration companies is not necessarily justified when drilling vertical or near-vertical exploration wells (as we have historically been doing).

Nonetheless, the absence of more extensive pre-drilling testing may potentially increase the risk of drilling a non-producing well, which would, in turn, result in increased costs and expenses. Additionally, we are typically engaged in drilling deep onshore wildcat wells in Israel where only approximately 500 total wells have ever been drilled, the vast majority of which are relatively shallow. As such, exploration risks are inherently very substantial.

(From 10-K for the Fiscal Year ended December 31, 2017)

Please review posted questions and ask your question in the comment field if it has yet to be answered:

Responses (49)

  1. Jan Pope
    January 7, 2019 at 3:14 pm · Reply

    Hello!

    I am interested in investing, but don’t have a lot right now. How much do I invest each time? And how often?.i.e….every month, or 6 months? And can I use a credit card to purchase more after my first initial payment? Thank you.

    • Zion Oil & Gas, Inc.
      January 10, 2019 at 2:27 pm · Reply

      Jan, you may invest when you’d like. If you wish to purchase directly (through our DSPP Program), it requires a $250 minimum first-time investment for stock and that will set up your account. After that, you may participate for as little as $250. Feel free to go here to learn more about our latest Unit Program: https://www.zionoil.com/unit-program/

  2. Greg Brezina
    January 3, 2019 at 3:42 pm · Reply

    Is Zionoil’s vision (their faith) the same today as it was at the start of the company (Duet. 33:24)? Does Zn’s mgt. still believe that they will find oil and/or gas to help sustain the nation of Israel?
    Thank you, Greg

    • Zion Oil & Gas, Inc.
      January 10, 2019 at 2:37 pm · Reply

      We can say that our vision remains the same as from the beginning and that management does believe Zion will find oil and/or gas onshore Israel.

  3. Charles Brown
    December 14, 2018 at 11:44 am · Reply

    When will we start 3D testing?

    • Zion Oil & Gas, Inc.
      December 17, 2018 at 4:55 pm · Reply

      We will announce expectations publically when we are prepared to do so.

  4. Frank K
    December 10, 2018 at 1:14 pm · Reply

    How much does Zion oil pay out to all its executives every month?

    • Zion Oil & Gas, Inc.
      December 13, 2018 at 5:12 pm · Reply

      All of this information is contained within the filings with the SEC. Please know that stock issuances do not mean execs actually exercise and/or sell the shares. Much of the rumors on the internet about how much the execs make are greatly, greatly exaggerated.

      1. It is essential to understand that reportable compensation does not equal W-2 earnings.

      2. Salary and Bonus represent less than 49% of all reportable compensation.

      3. Stock options awarded, regardless of whether those options were exercised, represent over 38% of all reportable compensation.

      4. It is important to note that there has been a company-imposed blackout period, restricting the sale or purchase of stock for all employees, implemented on May 15, 2017, which remains in effect to date.

  5. Gretchen Homme
    December 8, 2018 at 11:34 am · Reply

    If at some point you strike oil. I know Israel will benefit but will the people who are buying shares (me too) will we get some payment. I am new at this and I am trusting in God for this. How does the plan I bought work? I have bought shares here and there.

    Hello,

    I have an uncle who has oil shares in ND and he gets payment from those every month. If oil is found is this a possibility for how I invested it?

    Thanks sorry I am sort of unsure in my investment. I just do want to bless oil but I do need a blessing myself.

    I feel good about this investment from what God has shown me. :)

    Gretchen Homme

    • Zion Oil & Gas, Inc.
      December 13, 2018 at 5:13 pm · Reply

      Since we do not have production, we are not offering dividends. So, for now, profit will only be had if you sell your stock for more than you purchased the stock.

  6. CarmenM
    November 27, 2018 at 6:13 pm · Reply

    Our prayers are with you all. Will you take a moment to explain the “plugging plan” what does that mean? Is this project be a water monitoring well? Just want to understand. I read it but don’t get. Thank you.

    • Zion Oil & Gas, Inc.
      December 13, 2018 at 5:17 pm · Reply

      View our latest PRs and updates to get all that we’ve been able to release publically.

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