Kibbutz Signs Surface Use Agreement

Agreement Signed

Starting last fall, our Israeli staff began negotiations with representatives from Kibbutz Sde Eliyahu, the kibbutz on whose land we plan to drill our upcoming Megiddo-Jezreel #1 well.

We are very pleased to report that finally, last Sunday (May 15, 2016), we reached a key milestone – the Land Surface Use Agreement was finalized and signed by the kibbutz leadership.

Among other things, the kibbutz allows us to use the land surface and agrees that they will not object to the use of the drilling pad location for oil and gas exploration.

It is a blessing to have a good working relationship with the local kibbutz as we always seek to be good neighbors who have a sincere desire in being good stewards of the local resources while conducting our business. Our mission is to bless Israel and her people.

What’s Next?

Our key remaining hurdle relates to obtaining a rig and negotiating a drilling contract. Zion began the process a year ago and 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 is no longer able to supply our needs.

We remain in negotiations with another company to possibly purchase a rig to send to Israel. If we are able to purchase a rig, 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 on a rig lease/purchase.

Sincerely,
Victor_Carrillo_Signature
Victor G. Carrillo
CEO