Zion Oil Announces Rights Offering
January 29, 2009
Zion Oil & Gas (NYSE Alternext US: ZN) announced today that it has filed for a rights offering with the SEC. Under the terms of the offering Zion shareholders will receive (3) subscription rights for every (8) shares of common stock held. Each subscription right entitles the holder to buy one additional share of common stock at $5.00. For example, if a shareholder currently holds 1,000 shares of Zion Oil common stock, the shareholder would receive 375 subscription rights, or the right to buy 375 additional shares of common stock at $5.00. As I write this post, Zion Oil & Gas shares are at $8.81. That same shareholder, if he or she exercised his or her subscription right, 375 share would cost the share holder $1875, assuming today’s market price of $8.81, those 375 shares would be worth $3,303.75; a gain of $1428.75 with the stroke of a pen. Not a lot of hand wringing over that one.
Here’s Zion’s announcement:
ZION OIL ANNOUNCES RIGHTS OFFERING
Dallas, Texas and Caesarea, Israel - January 29, 2009 - Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced today that it has filed a registration statement with the Securities and Exchange Commission with respect to a proposed rights offering to its common stockholders of up to 4.2 million shares of common stock. Each whole subscription right will entitle the holder to purchase one share of common stock for $5.00.
Under the proposed rights offering, stockholders will receive three (3) subscription rights for every eight (8) shares of common stock owned on the record date. This is identical to 0.375 subscription rights for each share of common stock owned on the record date.
Should the rights offering be fully subscribed, the company expects to receive gross proceeds of $21 million. The proceeds from the rights offering will be used for Zion’s multi-well drilling plan.
Stockholders who fully exercise their rights will be entitled to subscribe for additional shares of common stock, if available, that were not subscribed for by other rights holders.
The record, commencement and initial expiration dates for the offering will be determined at the time that the registration statement relating to the rights offering becomes effective.
A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.
Zion Oil & Gas, Inc., a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Tel-Aviv and Haifa. It currently holds two petroleum exploration licenses, the Joseph and Asher-Menashe Licenses, between Netanya on the south and Haifa on the north, covering a total of approximately 162,000 acres.
FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s planned operations, potential results thereof and plans contingent thereon, including the importation of a drilling rig into Israel, the granting of various required permits and the gross proceeds of the rights offering, are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
Zion’s homepage may be found at: www.zionoil.com
Contact:
Brittany Russell
Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
(1) 214-221-4610
Email: dallas@zionoil.com
Related posts:
- Zion Oil Announces Revised Drilling Schedule
- Zion Oil Announces Drilling Delay
- ZION OIL ISSUES UNITS IN INITIAL CLOSING
Zion Oil Announces Drilling Delay
January 28, 2009
Zion Oil & Gas CEO Richard Rinberg announced to shareholders and interested parties today that drilling at the Ma’anit Rehoboth #2 well site would be delayed until March due to permitting hold-ups for AME’s drilling crew. According to Rinberg, the permitting delays were not helped by Israel’s focus on the recent war in Gaza, but at this time only a few ” ‘purely bureaucratic’ problems” remain. All other necessary support equipment and supplies seems to be on track and should be awaiting the rig’s arrival in March.
The Rinberg letter to Zion shareholders and ‘friends’ is below:
Dear Shareholder and/or Friend of Zion
In 1785, the Scottish poet, Robert Burns, wrote “The best-laid schemes o’ mice an’ men gang aft agley” or in English, “The best-laid plans of mice and men often go awry”.
That’s just another way of saying that no matter how carefully a project is planned, the unexpected may still delay you.
Earlier this month, during the (unexpected) war in Gaza, I emailed you an update of our scheduled drilling operations. As the Gaza military operations have now abated, I want to give you further revised information.
(1) The 2,000 horsepower drilling rig is in Ankara, Turkey and is now expected to arrive in Israel, rig-up and start drilling our well in March 2009. The main delay has been due to slow progress in obtaining the Turkish rig-workers’ permits. You will appreciate that for the last few weeks this has not been the State of Israel’s top priority. There were also delays due to a requirement that every rig-worker have a passport valid for over three years and that every worker personally visit Israel’s consulate in Turkey, (this last item was subsequently waived). However, we are now making good progress and expect a speedy resolution of all these ‘purely bureaucratic’ problems very soon.
(2) The Drill Pipe being shipped from China arrived at Haifa Port today (Wednesday, January 28, 2009).
(3) The Cement and Chemicals for the Mud will be delivered, at our request, when we are ready. Some of the material is already in Israel and for the remainder the order lead time is short. We do not want to store these materials at our site for longer than absolutely necessary.
(4) We have already received three Drilling Bits and are waiting for the rest of our consignment order to arrive. However, the Drilling Bits we have in store will enable us to drill to over 11,000 feet, so we are not concerned regarding Drilling Bits.
(5) We still have in secure storage, in Israel, over $1.7 million worth of drill casing and other inventory items.
My last email during the war in Gaza was approximately three weeks ago. Since then, military operations in Gaza have ended, the USA has sworn-in a new President and there has been the discovery of a huge natural gas field, offshore the coast of Israel (90 kilometers west of Haifa).
As we all know, a lot can happen in a very short period. So, we will just keep moving forward to our goal… of finding and recovering oil and gas, onshore in Israel.
“In your good pleasure, make Zion prosper…” Psalm 51:18
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas Inc
www.zionoil.com
FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, potential results thereof and potential effects of those results, including the importation of a drilling rig into Israel, the granting of various required permit, are forward-looking statements as defined in the “Safe Harbor” provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s Prospectus and its periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
Related posts:
- Zion Oil Announces Revised Drilling Schedule
- Zion Oil & Gas Signs Drilling Contract
- Zion Oil & Gas Public Offering Update
Living in the Land of the Lotus-Eaters
January 27, 2009
“Other seed fell among thorns, which grew up and choked the plants.” (Mathew 13:7) Remember reading the Iliad and the Odyssey in high school? Maybe not. Homer’s ancient epic poems have been made into movies several times. We’re better at remembering movies these days than literature. Anyway, both the Iliad and the Odyssey are about a character [...]Zion Oil Raises $6.6 Million+ in Public Offering
January 21, 2009
Zion CEO Richard Rinberg (left) with drilling team
Zion Oil & Gas announced results of it’s latest public offering today. The offering included three closing dates and amounts totaling $6,663,430. Capital raise in the offering will finance drilling the Ma’anit Rehoboth #2 well in Northern Israel. Zion’s press release is below:
Zion Oil Issues Units in Third and Final Closing of Follow-on Offering
Dallas, Texas and Caesarea, Israel - January 21, 2009 - Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) announced today that the company will issue 249,039 units in the third and final closing of Zion’s follow-on offering. Each unit consists of one share of Zion stock and one warrant to purchase one share of Zion stock. The units were issued at $10 per unit and the amount raised in this closing was $2,490,390, of which $2,364,640 was for cash, $120,000 was for debt conversion of deferred salary due to two officers of Zion and $5,750 was in settlement of fees due to two service providers.
In the initial and second closings of this offering, held on October 24 and December 2 2008, Zion issued 417,204 units, raising gross proceeds of $4,172,040.
In total, Zion raised from its follow-on offering, which ended on January 9, 2009, gross proceeds of $6,663,430, of which $6,417,680 was for cash, $240,000 was debt conversion related to the deferred salary due to two officers of Zion and $5,750 was in settlement of fees due to two service providers. In respect of the total amount raised, Zion issued 666,343 Units
Zion’s Chief Executive Officer, Richard Rinberg, said today, ” With the funds raised in this offering, we now eagerly await the arrival of the 2,000 horsepower drilling rig and the drilling of Zion’s second well, on our Joseph License, to the Triassic Formation (down to a depth of 15,400 feet) and then, we plan, to the Permian Formation (down to a depth below 18,000 feet).”
Zion’s common stock trades on the NYSE Alternext US under the symbol “ZN“. On February 9, 2009, each unit will separate into its component share and warrant, and each of the shares and the warrants will trade separately, with the warrant trading under the symbol “ZN.WS“.
Zion Oil & Gas, Inc., a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Tel-Aviv and Haifa. It currently holds two petroleum exploration licenses, the Joseph and Asher-Menashe Licenses, between Netanya on the south and Haifa on the north, covering a total of approximately 162,000 acres.
FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s planned operations, potential results thereof and plans contingent thereon, including the importation of a drilling rig into Israel and the granting of various required permits, are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
Zion’s homepage may be found at: www.zionoil.com
Contact:
Brittany Russell
Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
(1) 214-221-4610
Email: dallas@zionoil.com
Related posts:
- Zion Oil & Gas Public Offering Update
- ZION OIL ISSUES UNITS IN INITIAL CLOSING
- October 24, 2008 Letter From Zion CEO Richard Rinberg
Living in Two Kingdoms
January 20, 2009
I don’t always believe God is real. Kind of shocking, isn’t it? But let me present the evidence. If I believed God was real, I’d believe in what His Son said. I’d take it to heart. I wouldn’t doubt it. I’d have what we ‘believers’ call ‘faith’. Not believing God is real is more common than you think. [...]Expect Stock Surge in US Oil and Gas Companies Exploring in Israel
January 18, 2009
Noble Israel Based Offshore Drilling Rig
Israeli energy stocks surged today (see http://www.oilinisrael.net/oil-in-israel-articles/israel-energy-stocks-surge-on-large-gas-find)based on Noble Energy’s announcement of a discovery off the Haifa Coast of over three trillion cubic feet of natural gas.
Noble Energy (NBL, NYSE) who announced the discovery and Zion Oil (ZN, AMEX), both public companies trading on American Markets, and both involved in Israeli energy exploration, should experience similar stock surges on Monday when US markets open.
Zion Oil's License Area Near Natural Gas Discovery
Related posts:
- Israel Discovers Huge Natural Gas Field
- Israel energy stocks surge on large gas find
- Zion Oil & Gas Newsletter October 2008
Israel energy stocks surge on large gas find
January 18, 2009
JERUSALEM, Jan 1 8 (Reuters) - Shares of Israeli energy companies soared on Sunday after an exploration group led by Noble Energy (NBL.N) said it discovered more than 3 trillion cubic feet of natural gas off Israel’s Mediterranean coast.
Among Israeli partners in the Yam Thetis consortium, Isramco (ISRAp.TA), with a 28.75 percent stake, led gainers with a nearly 130 percent surge.
Delek Drilling (DEDRp.TA), which holds 15.625 percent of the group, jumped 48 percent, while Avner Oil Exploration, also with a 15.625 percent stake, (AVNRp.TA) was up 36 percent.
Delek’s parent, Delek Group (DELKG.TA), rose 54 percent.
Overall, the blue-chip Tel Aviv 25 index .TA25 was up 2.6 percent, while the broader TA-100 .TA100 was 3.7 percent higher at midday.
(Reporting by Steven Scheer; editing by John Stonestreet)
Related posts:
Israel Discovers Huge Natural Gas Field
January 18, 2009
“They shall call the people unto the mountain; there they shall offer sacrifices of righteousness: for they shall suck of the abundance of the seas, and of treasures hid in the sand.”
(Deuteronomy 33:19)
Noble Energy (see my earlier post: http://www.oilinisrael.net/oil-in-israel-articles/more-detail-about-the-haifa-offshore-gas-exploration) has discovered “three massive gas fields” just off the coast of Haifa. This field is much richer, the natural gas reservoirs much larger than Noble energy expected. This find alone could be enough natural gas to power Israel’s electrical plants and supply it’s commercial and domestic natrual gas needs for the foreseeable future - and still with enough for export to other countries. Yitzhak Tshuva, owner of the Delek Group Ltd, a partner in the Tamar #1 well, called the discovery “one of the biggest in the world,” promising that the find would present a historic land mark in the economic independence of Israel.
The Jerusalem Post and many other news organizations announced the discovery to the people of Israel and to the world this morning. Below are excerpts of the JP article you can read it in its entirety at http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=1232265973374.
Jerusalem Post Sunday January 18, 2009
Three massive gas reservoirs have been discovered 80 kilometers off the Haifa coast, at the Tamar prospect, Noble Energy Inc. announced on Sunday.
The Tamar -1 well, located in approximately 5,500 feet of water, was drilled to a total depth of 16,076 feet. The thickness and quality of the reservoirs found were greater than anticipated at the location.
Charles D. Davidson, Noble Energy’s chairman, president and CEO, said in an announcement that his company was “extremely excited by the results. This is one of the most significant prospects that we have ever tested and appears to be the largest discovery in the company’s history.”
Speaking on Army Radio Sunday morning, an exhilarated Yitzhak Tshuva, owner of the Delek Group Ltd, one of the owners of the well, called the discovery “one of the biggest in the world,” promising that the find would present a historic land mark in the economic independence of Israel.
“I have no doubt that this is a holiday for the State of Israel. We will no longer be dependent [on foreign sources] for our gas, and will even export. We are dealing with inconceivably huge quantities; Israel now has a solution for the future generations,” Tshuva added.
An ecstatic Infrastructures Minister Binyamin Ben-Eliezer said before the weekly cabinet meeting that the discovery was a “historic” one and could “change the face of Israeli industry.”
Production testing at Tamar will be performed after the well is completed. Noble Energy and its partners may keep the rig to drill up to two additional wells in the basin. Pending positive test results, one well could be an appraisal at Tamar.
Noble Energy operates the well with a 36 percent working interest. Other interest owners in the well are Israeli companies Isramco Negev 2, Delek Drilling, Avner Oil Exploration and Dor Gas Exploration.
Following the announcement of the discover, shares of Delek Drilling jumped up 80%, while shares of Isramco Negev 2 skyrocketed by an unprecedented 120 percent.
Related posts:
- More Detail about the Haifa Offshore Gas Exploration
- Does Israel Have Oil? Wrong Question.
- Natural Gas Exploration to begin off the Haifa Coast
“Would You Condemn Me to Justify Yourself?”
January 13, 2009
“‘Would you discredit my justice? Would you condemn me to justify yourself.’” (Job 40:8) I received a sad comment this weekend. It was a response to a Purpose Weekly letter “Has God Forsaken You?” You can read the letter and the comment (feel free to comment yourself) at: http://www.gotpotential.org/gods-purpose/has-god-forsaken-you. Here’s the comment from John: Bull____. In one sentence [...]I Will Lift Up My Eyes to the Hills
January 13, 2009
“Before the mountains were born or you brought forth the earth and the world, from everlasting to everlasting you are God.” (Psalm 90:2) I took advantage of the relative quiet over the last two weeks of holiday to finish pre-press edits for the North American edition of Unlocking the Bible by David Pawson. It’s a massive [...]-
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