Press Release: November 29 – Zion Oil & Gas Plans Going Forward
Zion Oil & Gas Plans Going Forward
DALLAS and CAESAREA, Israel, November 29, 2018 – Zion Oil & Gas, Inc. (NASDAQ: ZN) announces that it is completing the final phase of plugging the Megiddo Jezreel #1 (MJ#1) well in accordance with the wishes of various Israeli government ministries to allow for re-entry for future water monitoring.
The vision of Zion Oil & Gas remains to help Israel become energy independent, and in doing so, use our projects as a platform to share the gospel of Jesus Christ. That vision has not changed, and while the MJ#1 was determined to be non-commercial, we believe it was a meaningful and impactful project and one which we believe justifies further exploration efforts within our license area.
The MJ#1 well has provided Zion with information that we believe is important for potential future exploration efforts within our license area. As with many frontier wildcat wells, the MJ#1 also left several questions unanswered.
While not meant to be an exhaustive list, a summary of what Zion believes to be key information learned in the MJ#1 well is as follows:
- The MJ#1 encountered much higher subsurface temperatures at a depth shallower than expected before drilling the well. In our opinion, this is significant because reaching a minimum temperature threshold is necessary for the generation of hydrocarbons from an organic-rich source rock.
- The known organic rich (potentially hydrocarbon bearing) Senonian age source rocks that are typically present in this part of Israel were not encountered as expected. Zion expected these source rocks to be encountered at approximately 1,000 meters in the MJ#1 well.
- MJ#1 had natural fractures, permeability (the ability of fluid to move through the rock) and porosity (pore space in rock) that allowed the sustained flow of formation fluid in the shallower Jurassic and lower Cretaceous age formations between approximately 1,200 and 1,800 meters. While no hydrocarbons were encountered, Zion believes this fact is nonetheless significant because it provides important information about possible reservoir pressures and the ability of fluids to move within the formation and to the surface.
- MJ#1 encountered oil in the Triassic Mohilla formation which Zion believes suggests an active deep petroleum system is in our license area. There was no natural permeability or porosity in the Triassic Mohilla formation to allow formation fluid to reach the surface naturally during testing and thus the MJ#1 well was not producible or commercial.
- The depths and thickness of the formations we encountered varied greatly from pre-drill estimates. This required the MJ#1 to be drilled to a much greater depth than previously expected. Zion has tied these revised formation depths to our seismic data which will allow for more accurate interpretation and mapping in the future.
A summary of what Zion believes to be some key questions left to be answered are:
- Is the missing shallow Senonian age source rock a result of regional erosion, or is it missing because of a fault that cut the well-bore and could be reasonably expected to be encountered in the vicinity of the MJ#1 drill site? Zion believes this is an important question to answer because if the Senonian source rocks do exist in this area, the high temperatures encountered are sufficient to mature these source rocks and generate oil.
- Do the unusually high shallow subsurface temperatures extend regionally beyond the MJ#1 well, which could allow for the generation of hydrocarbons in the Senonian age source rock within our license area?
- As a consequence of seismic remapping, where does the MJ#1 well lie relative to the potential traps at the Jurassic and Triassic levels and was the well location too low on the structures and deeper than the potential hydrocarbons within those traps?
As a result of these unanswered questions and with the information gained drilling the MJ#1 well, Zion now believes it is prudent and consistent with good industry practice to try and answer some of these questions with a focused 3D seismic imaging shoot of approximately 50 square kilometers surrounding the MJ#1 well.
If undertaken, this will not be a short-term exploratory project with immediate results, and it is one for which Zion will need to raise additional funding, the success of which is not assured. A realistic timeframe in which Zion can reasonably expect to complete this project would be six to twelve months (following a successful raise) to plan the survey design or layout, identify and obtain the necessary equipment which will likely have to be imported, receive the necessary permits, negotiate potential surface damages, and acquire the data. An interpretation effort would follow the seismic acquisition. We intend to proceed soon with a new unit program to try and raise the needed funds for this and will provide details concerning unit program limits, parameters, use of proceeds, and other pertinent information.
Zion recognizes the financial and time commitment that our shareholders have made in supporting us and its need for additional funding to undertake these efforts. As noted, there are a number of questions Zion believes need to be further explored. While there is no guarantee that these exploration efforts will lead to commercial success, Zion takes its responsibility to its shareholders very seriously.
Zion expresses appreciation for the continued support of their shareholders and considers it an honor to represent them.
Deuteronomy 31:8
1 Corinthians 2:5
LORD be with you, John Brown and Zion Oil & Gas. Praying that Israel will be richly blessed through your endeavor and those who support you will reap the blessing also – quoting the Scripture beneath your signature: “And it shall be, if you go with us—indeed it shall be—that whatever good the Lord will do to us, the same we will do to you.” Numbers 10:32
Father I come before You in Jesus’ mighty name – please, bring the plan of Zion Oil & Gas to fruition – or kill it. Let no one be disappointed who have trusted in this undertaking, nevertheless Your will in all things. Thank You, LORD..
Could you please explain the decision to not begin with a 3-D seismic test? If the plan prior to drilling was to do a 3-D test if the drilling results were negative, why not start with the 3-D test to save time and money? Had the data come back with positive results, the extra money spent on 3-D seismic testing would have been worth it. If not do the testing before drilling, why do it after?
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 are 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)
If I invest where and how often can I get updates on my investment?
Hello Kathy, when you invest directly, an account is set up for you at AST Financial. They send you statements when you are set up and when you make a change to your account. You may also sign up online to check your account (like most banks now) whenever you’d like.
When will the next time to buy stock come around?
Catherine, we’ve been selling stock direct without stop since 2013. Periodically, we do special programs of stock and warrants (Units) for our investors to take part in. You can buy stock directly at any time by going here – http://www.zionoil.com/dspp. You may also purchase stock at any time through a broker.
I’ve been wanting to invest. Im not rich and I Dont have much. I love Israel and its people. I believe The Lord and want to invest. Will there be divedend checks. Is this a wise investment?
Leslie, we cannot tell you if this is or is not a wise investment for you. Feel free to consult your financial advisor. We can say there is risk involved with oil and gas exploration that you should be aware. Our investors tend to understand the risk and invest to help give Israel a chance to find oil and gas onshore. There would only be dividends paid once we have revenue (when oil or gas is found) and if the board elects to pay dividends in the future.
I am invested, but was sad at the lawsuits etc, which is not good for His Name.
Trust that you know, you are all held accountable and we do desire the riches for Israel and for His kingdom.
Like Daniel, let all things be done excellently
Be Blessed,
Paul
Amen dear Colyn The Lord Jesus Christ, the Wonderful and Living God of Israel who made the promise is More than able. He Will certainly fulfill His Word at His due Time and season.
Let’s persevere, trusting Him because He never fails. He cares and has already seen us through His amazing project for Israel His chosen people. Be strong dear beloved brother John Brown, the bearer of the Vision.
Let’s move on and keep our faith stronger and stronger daily, as the deliverance is drawing nearer.
Shalom to ZionOil @ Gas
Bro. Jacques F.
MD – USA
Does the Bible say in it that oil is in
Isral ? If so can u tell me where that is thank you
We believe as show in the vision on this website – https://www.zionoil.com/vision/vision-statement/
Yes, God is always speaking – Thank You God! Heavenly Father, I ask and pray in Jesus Name that You give those you are speaking to ears to hear You, to know it is You, ears to know voices that are not Your voice, and hearts with the courage to obey Your Voice and not follow the voices of another besides You God. Thank You Father. Amen.