Press Release: Zion Oil & Gas Launches a New Unit Program to Support Additional Testing Required to Evaluate Reservoir Potential
Zion Oil & Gas Launches a New Unit Program to Support Additional Testing Required to Evaluate Reservoir Potential
Zion Oil & Gas Administrative Update
DALLAS and CAESAREA, Israel, August 21, 2018 – Zion Oil & Gas, Inc. (NASDAQ: ZN) gives further guidance of operational and administrative plans as it announces a new Unit Program under its ongoing Direct Stock Purchase Plan (DSPP).
“Following up on the detailed operational update that was released on August 16th, we reiterate the fact that there is a lot of work left to be done to determine the commerciality of the Megiddo-Jezreel #1 (MJ #1) well,” says Dustin L. Guinn, Zion’s President and Chief Operations Officer.
Zion has only tested approximately 220 feet of a well that was drilled to a total depth of over 16,600 feet, or less than 1.5% of the total measured depth. Zion emphasizes that there are multiple zones that may be capable of yielding material amounts of hydrocarbons over the 16,000 feet of geologic column not yet tested. We believe it is imperative to further explore the well’s potential based upon independent 3rd party petrophysical analysis that suggests the existence of hydrocarbons within MJ #1.
NEW UNIT PROGRAM
Zion is launching a Unit Program where each Unit (priced at $250.00) is comprised of:
- A certain number of shares of Common Stock determined by dividing $250.00 (the price of one Unit) by the average of the high and low sale prices of the Company’s publicly traded common stock as reported on the Nasdaq on the Unit Purchase Date, and
- 25 common stock purchase warrants. Each warrant (symbol “ZNWAJ”) affords participants the opportunity to purchase one share of ZN common stock at a warrant exercise price of $1.00.
The warrants will first become exercisable on Monday, October 29, 2018, and continue to be exercisable for one year after the exercise date at a per share exercise price of $1.00.
Zion has provided more information on the Unit Program on its website: https://www.zionoil.com/dspp.
Zion’s Administrative Update:
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 in the provision of requested information.
Following Zion’s disclosure of the SEC investigation, Zion became aware of a number of law firms who allege they are investigating Zion’s compliance with federal securities laws and are soliciting clients. To our knowledge, only one lawsuit has been actually filed in federal district court, but to date, Zion has not been served with formal notice of litigation. We believe these claims are frivolous and without merit, and we will wage a vigorous defense.
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 Oil & Gas, Inc. has filed with the SEC a registration statement (including a prospectus) for the unit program under the DSPP to which this communication relates. That prospectus and other documents the Company has filed with the SEC may be obtained at no charge (free) by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company will send you the prospectus upon request by calling toll free 888-891-9466. Direct links to the SEC location, or to the documents in PDF, may be found on Zion’s home page at www.zionoil.com.
Sometimes it feels like We”re hanging on to a thread hanging from the bottom of Yeshua’s garment! But after reading late last night that Zion oil is offering 250 share packages to more investers… I know God has more faith filled people out there He wants to bless with the Zion Oil Mission. I bought another 1000 shares…bringing my total to 8000!!! Have been interceding through this time of hanging on through to Victory I see ahead! God’s Blessings and Psalm 91 protection over all as we move ahead to a huge Oil discovery for Isreal! Pray for the Peace of JerUSAlem!!! God has you in the palm of His hand! 💜💜💜💜💜 Blow The Shofar!!!
I am not selling any of my shares until by Hebrews 11:1 comes to pass for Zion Oil. I pray in Jesus name a gusher is waiting. The nay sayers are out to debunk any positive outlook on Zion. These are either shooters of the stock trying to drive it down or just disgruntled people who sold their shares for a big loss. I feel a big find is around the corner for Zion. 20 dollars a share at the least when they hit commercial amounts of oil. By early next year IMO they will have found what we are all hoping for. Be safe. Dustin Guinn I have never met you but when we Hit oil my family is flying to Dallas to meet you and see the Zion building. We are praying for wisdom and favor for you as you are making the decisions My family has invested your trust to. I am at peace even though my share values have plummeted ove the course of the last few months. It’s not over yet and it’s the darkest before the dawn. Don’t be discouraged Dustin. God has you in this position of authority for all of Israel and the Zion shareholders.
Stephen Blevins
I’ve been sending the law firms claiming to pursue a class action against the company my reasoning for standing beside the company. It is as follows:
Dear sir:
I’d like to share with you why I continue to support Zion Oil and Gas.
The Concept that ZN is a scam is being proposed by individuals who would likely view any type of spiritual belief as a scam.
The presence of a higher power is a mental construct too vast to understand…it’s a boggling concept. I agree there are a number of individuals and organizations who use religion for power, and they often justify beliefs outside of the civil rights and liberties a free country should support.
In the instance of Zion Oil, there is a rig on location. The company has objectives that are straight forward. A wildcat oil exploration company using the Bible for guidance. If ppl choose to express their faith in such a manner, that is free will. Criticism of this choice is rooted in the disbelief of a higher power. If you feel that way, you’re certainly entitled to that, but recognize your Critique of the company has some basis in religious prejudice and intolerance.
I strongly disagree with the sentiment that the company has acted in a fraudulent manner. Rather, I view your class action as part of a multi-faceted, malicious attack derived from highly questionable motives.
Sincerely,
Branden S.
I believe in the company and look forward to further updates regarding the reservoir!
Thank you so much! This is incredible.
I have two questions. The first is did MJ#1 drill through the Permian geologic strata? The second is were there oil shows down to the very bottom of the well in the Triassic strata? Zion modeled the drilling of MJ#1 based on a existing successful well of another Israeli oil company who stopped in the Triassic is what I understand. The Triassic in MJ#1 is being described as “tight” and having “no permeability or natural fractures” but it has some oil in it. Is there a possibility this is a “OIL TRAP CAP” over the Permian layer! All we hear about in west Texas is Permian, Permian, Permian , Permian, Permian…. From what I have read the west Texas Permian is the biggest find ever in the United States. I understand all the mechanical issues MJ#1 was having being so deep with a three inch drill string sixteen thousand feet deep. The torque, very solid strata, just all the extremes of the drilling process. To all my fellow shareholders we need to raise money to test the other “target prospects.” Next if Zion’s management thinks there is a possibility of oil being deeper we might as well buy enough three inch drill string and drill down into the Permian layer, just like in west Texas, and see what happens. We have given so much IT IS WORTH A SHOT if Zion management thinks there’s a CHANCE! WHAT DO WE HAVE TO LOSE WE MIGHT AS WELL TAKE A SHOT AT THE PERMIAN AND SEE WHAT HAPPENS!!!
I would like to know two things. The first is were there oil shows down to the very bottom of the well? The second is did we get into the Permian layer? Zion has told us the Triassic has shows of oil in it but it is tight and has no permeability or natural fractures. I want to know if there is a possibility of oil being deeper. The Triassic has the characteristics of a cap sounds like to me. Is the Permian below the Triassic?All we hear about west Texas is Permian, Permian, Permian! We have been told how Zion modeled it’s drilling process after another Israeli oil company and I guess didn’t want to go deeper than the Triassic. I just want to know if MJ#1 drilled through the Permian layer!
Keep the FAITH and ignore the torpedoes, full speed ahead!. – A shareholder