Zion Oil & Gas Operations Update from Israel as of March 13, 2023 – New UNIT Program
March 13, 2023: Zion Oil & Gas Operations Update
Dear Zion Shareholders and Supporters,
Zion Oil and Gas is steadily moving forward with operational plans in anticipation of the new license being granted very soon. Our most recent updates have alluded to our intentions of re-entering the MJ-1 well, and I would like to take this opportunity to share with each of you the reasons for doing so.
Exploration in an unproven area begins with examining all the available technical information to assess if the critical elements of an active petroleum system are present. The elements include:
- The presence of reservoir rocks (sandstones, limestones, dolomites) capable of being containers for oil and gas;
- The likelihood of having organic source rocks which could generate hydrocarbons;
- And a basin where the source rocks could be buried deep enough to mature into oil and gas given a sufficiently high thermal gradient leading to a burial temperature in the generation window for oil and gas.
Oil and gas generated and expelled from the source rocks migrate upward in strata and along faults to a structure that can be a trap (like an anticline) for the hydrocarbons if a good seal rock exists above the trap.
Looking at all the critical data, the Zion geological and geophysical (G&G) team determined that the right components of a petroleum system exist in this area. At this point, Zion applied for the Megiddo-Jezreel license.
Zion acquired new 2D seismic data on the granted license and reprocessed existing 2D seismic. The early 2D work allowed Zion to map a trap, and the MJ-1 well was drilled. Of particular importance in MJ-1 was the strong show of light oil and condensate while drilling in the Triassic.
Zion then acquired 3D seismic data to understand the structure further, and the MJ-2 well was drilled. We then acquired well logs in MJ-2, and our consulting petrophysicist identified promising zones of hydrocarbon pay.
At this point, Zion brought in consulting completion engineers to apply innovative stimulation techniques in these potential pay zones, with the goal of obtaining commercial flow rates. Unfortunately, we have been unsuccessful to date.
Detailed analysis of the data from MJ-1 and MJ-2 by Zion’s G&G team has led to the conclusion that MJ-1 is a logical candidate for re-entry to attempt to get the zone with the strong show to flow using the stimulation techniques employed in MJ-2. These techniques should also enable us to overcome the near well bore challenges.
Zion also will use new and focused perforation methods to overcome these challenges and potentially encourage MJ-1 to flow while simultaneously allowing Zion to evaluate previously untested zones for further review and testing.
With this focus on moving forward, we invite you to learn more about our new Unit Program to raise the funding needed for these next steps in our exploration for the oil of Israel. You may learn more at the bottom of this email or on our website – zionoil.com/unit-2023.
We express our gratitude to God for His consistent blessings and extend our heartfelt thanks to our faithful shareholders and supporters who enable us to pursue this vision. Your prayers have significantly contributed to our endeavors, and we remain steadfast in our commitment to fulfilling Zion’s vision.
We will continue to keep you updated with any important and materially relevant information as soon as we have it.
NEW UNIT PROGRAM DETAILS:
For each $250.00 UNIT you receive:
- $250.00 of ZNOG Stock for today’s high-low average (if purchased before 4 pm Eastern).
- 500 Warrants with an exercise price of $0.05 each for 90 days.
You can purchase these UNITS until Zion raises $7.5 million or until 11:59 pm (your current time) on Thursday, April 27, 2023.
The Warrants will first become exercisable depending on the purchase date over three periods:
- March 13-26, exercisable on March 31 for 90 days.
- March 27-April 9, exercisable on April 14 for 90 days.
- April 10 – 27, exercisable on May 2 for 90 days.
Those who purchase UNITS and sign up (or are already enrolled) for Automatic Monthly Investments (AMI), will receive:
50 Additional Warrants if enrolled for at least $50/month.
100 Additional Warrants if enrolled for at least $100/month.
250 Additional Warrants if enrolled for at least $250/month.
500 Additional Warrants if enrolled for at least $500/month.
* This Unit Program will end on Thursday, April 27, 2023. (Early termination if $7.5 million raised.)