Annual Shareholder Meeting in Israel
Annual Shareholder Meeting in Israel
We recently returned from our Annual Shareholder Meeting in Caesarea, Israel, which was held on June 6th. All 13 members of our Board of Directors were present and shareholders re-elected the following individuals to our Board: Justin W. Furnace, Martin M. van Brauman, Gene Scammahorn, and Dustin L. Guinn. Shareholders also ratified the appointment of MaloneBailey, LLP, an independent registered public accounting firm, as the independent registered public accounting firm of the Company for the fiscal year ending December 31, 2016.
The Board of Directors also approved appointing Dustin L. Guinn (see image above, top row, 4th from left) to the Company’s management team as Executive Vice Chairman. Mr. Guinn was appointed a director on May 1, 2015. Previously, Mr. Guinn served as Chief Executive Officer of Viking Services, a multinational and fully integrated oil & gas service company with an employee base in excess of 1,500 with operations in the United States, Hungary, Turkey, Serbia, Albania, Romania, Israel, Northern Iraq and Oman, with an asset base of $600 million generating annual revenues of over $400 million at its peak. Mr. Guinn’s primary responsibilities included operational and strategic management focusing on the growth, deployment and profitability of key assets in countries within the Middle East, North Africa, and Central and Eastern Europe. Mr. Guinn has extensive experience in transactional mergers and acquisitions involving both entity and asset purchases as well as the integration of those acquisitions and was intimately involved in the growth of Viking since its inception in 2008. Mr. Guinn graduated, with honors, from New Mexico State University with a Bachelor of Business Administration degree in Finance. He also earned his Master’s Degree in Business Administration (MBA) from West Texas A&M.
When will Zion Start to Drill?
Our key remaining hurdle is to secure an appropriate drilling rig and crew. Zion began the process a year ago when we signed a Memorandum of Understanding with an international drilling services company, but that company, like many others in the current oil & gas price downturn, underwent a lengthy corporate reorganization and can no longer supply our needs.
Agreement-In-Principle to Form “Zion Drilling”
As we searched for drill rig acquisition alternatives, Zion and a US-based oil field service company with global operations recently reached an agreement-in-principle to form a special purpose subsidiary to operate a drilling rig. The rig will be contributed by the oil field service company and we will contribute shares of common stock, with the subsidiary to be owned 50% by Zion and 50% by the oil field service company.
We remain in those negotiations to acquire the drilling rig to ship to Israel. We must still raise several million dollars to be able to test/rehab the rig, ship the rig, and field a crew to operate it in Israel. If we are able to conclude definitive agreements on mutually acceptable terms soon, we hope to begin drilling this fall. When we secure our own rig and establish Zion Drilling (Zion’s subsidiary), we will no longer be faced with seeking drilling contractors each time we plan to drill a new well!
I sincerely believe that 2016 is the year that Zion Oil & Gas will drill our well and hopefully discover and begin to recover the oil (“blessings of the deep” Gen. 49:25) under the Land of Israel.
Please pray that God would grant us favor in our fundraising efforts and in our ongoing negotiations to acquire a drilling rig and establish our Zion Drilling subsidiary.
Victor G. Carrillo
This communication contains statements that may be deemed to be “forward-looking statements” under federal securities laws. Any forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, our ability to raise additional capital to fund our drilling program, our going concern qualification, our success in obtaining all needed regulatory approvals for the drill site, entering into drilling agreements, changes in economic conditions generally and the oil & gas industry specifically, changes in technology, legislative or regulatory changes, and other risks and uncertainties discussed under the heading “RISK FACTORS” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and in the Company’s other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.