Press Release: April 24, 2019 – Zion Oil & Gas Announces Launch of New Unit Program
Zion Oil & Gas Announces Launch of New Unit Program
Preliminary scouting and design work accomplished in Israel.
Zion announces that it is making available a new unit program under its continuing Dividend Reinvestment and Common Stock Purchase Plan (“DSPP”) in its going forward plans as outlined in the November 29th, 2018 press release.
The vision of Zion Oil & Gas remains to help Israel become energy independent, and in doing so, use Zion’s projects as a platform to share the gospel of Jesus Christ worldwide. That vision has not changed.
3D SEISMIC IMAGING SHOOT OF APPROXIMATELY 60 SQUARE KILOMETERS
As previously noted in its November 29th press release, Zion believes it is prudent and consistent with good industry practice to answer questions that arose during the drilling and testing of the Megiddo-Jezreel #1 (MJ#1) well with a focused 3D seismic imaging shoot of approximately 60 square kilometers surrounding the MJ#1 well.
While Zion cannot estimate the proceeds to the company from the unit program or from sales of Zion’s common stock under the Plan, the following table sets forth the planned use of the proceeds Zion receives from sales under the unit program or under the Plan:
|3D seismic plan design||$||100,000|
|Surface use permits||$||250,000|
|Surface use damages from seismic acquisition||$||250,000|
|Seismic equipment mobilization/demobilization||$||300,000|
|Acquisition cost of Seismic 3D and related equipment||$||2,600,000|
|Interpretation of seismic data||$||500,000|
|Ongoing company operations, general & administrative and working capital||$||6,000,000|
The foregoing reflects only estimates of the use of the proceeds and allocation of any proceeds could be materially different from what is reflected above. In addition, no assurance can be given that Zion will be able to successfully raise the needed capital.
ROBERT DUNN AS DIRECTOR OF OPERATIONS
Robert Dunn has been employed as Zion’s Director of Operations to oversee the planned acquisition and processing of that data, in addition to other operational matters as they arise. Mr. Dunn’s impressive resume includes over 26 years of senior management and field operations focusing on technologically driven seismic acquisition across the globe.
During the past decade of working in the Eastern Hemisphere, Mr. Dunn has acquired more than 7,800 square kilometers of 3D and 10,000 kilometers of 2D seismic surveys which have helped exploration and production customers make informed decisions in their exploration programs. Mr. Dunn’s full biographical information can be viewed as an attachment to Zion’s Form 8-K filed on April 17, 2019.
PRELIMINARY SCOUTING AND DESIGN ACCOMPLISHED
Preliminary field scouting has been accomplished, and a suggested final survey design has been completed. The permitting process has begun, as well as identifying potential seismic source equipment and wireless geophones to record the signal. Contracts with seismic service providers will need to be negotiated along with potential surface damages to crops, irrigation piping, and other surface features.
Data acquisition and interpretation are the final steps and involve integration with, and modification of, previous work by Zion technical staff. A realistic timeframe in which Zion can reasonably expect to complete this project would be at least six months following a successful capital raise.
“GOING FORWARD” UNIT PROGRAM
- The cost of each Unit will be $250.00 for new and existing Direct Stock Purchase Plan investors.
- Each Unit purchase will provide the investor with purchase of stock for that day’s high-low average and 50 $2.00 Warrants.
- Warrants are exercisable on the 60thday following the end of the Unit Program and exercisable for two years (August 6, 2019, to August 6, 2021).
- If investors sign up for Zion’s automatic monthly investments in addition to purchasing a Unit during this Unit program, then they will receive a one-time addition of 25 $2.00 Warrants. Current subscribers are eligible for these extra warrants once if they choose to participate in this unit purchase during this Unit Program period. (For more details on the automatic monthly investments, see Zion’s Prospectus Supplement on page 4.)
- Investors may participate starting Wednesday, April 24, 2019.
- This Unit Program will end on Thursday, June 6, 2019.
- This Unit Program is available through Zion’s website. Investors may go to https://www.zionoil.com/dspp to purchase electronically online or to print and mail their investment.
Zion expresses appreciation for the continued support of its shareholders and considers it an honor to represent them.