June 24, 2009
“Woe to you, teachers of the law and Pharisees, you hypocrites! You give a tenth of your spices—mint, dill and cummin. But you have neglected the more important matters of the law—justice, mercy and faithfulness. You should have practiced the latter, without neglecting the former. You blind guides! You strain out a gnat but swallow [...]
June 22, 2009
Drilling Operations on the Ma’anit-Rehoboth #2 Well
We are now drilling at approximately 15,100 feet, 84% of the way to our final target drilling depth on our well, at approximately 18,000 feet in the (deep) Permian geological layer.
The picture above - An angel’s view of the Ma’anit-Rehoboth #2 drillsite - is an aerial photograph of the Ma’anit-Rehoboth #2 wellsite.
Just in case you assume that we are using Zion’s precious cash resources to hire expensive planes and aerial photographers, you should know that Glen Perry, Zion’s President and Chief Operating Officer, met a pilot who was so fascinated by Zion’s exploration work that he offered to take some photographs next time he was ‘in our area’…
As you can see from the resulting photograph, it was a clear day over Kibbutz Ma’anit and the picture clearly shows the large scale of Zion’s operations. You can get an idea of scale from the few cars on the site.
I’ll pick out some of the photograph’s main features for you:
(a) in the center, the 2,000 horsepower drilling rig
(b) 75% of the way up the rig mast, is a white rectangle - that’s a small platform, called the ‘monkeyboard’, and is 80 feet above the drill floor
(c) the (yellow) main gate is at the bottom left, and the emergency back gate (also yellow) is at the top right
(d) in front of the rig, at the bottom of the pipe ramp are pieces of steel casing to go into the well
(e) just to the left of the rig are the (diesel) fuel tanks that power the rig
(f) to the right of the rig is the reserve mud pit
(g) the cabins on the right of the site (next to the parked cars) are for the drilling manager, the mud logging, the directional drillers, the rig crew and various storage cabins.
(h) many of the ‘red dots’ on and around the rig are members of the rig crew.
When I saw the photograph, I was reminded of Nanci Griffith singing ‘From a distance’:
“From a distance, there is harmony, And it echoes through the land.
From a distance we are instruments, Marching in a common band.”
Drilling Progress Report
Here is (weekly) Progress Report #6, for the week ended Thursday, June 18, 2009, from Glen.
“This past week our drilling reached a depth of approximately 15,100 feet (4,600 meters).
As in previous weeks, the drilling is proceeding very well indeed and we are ahead of schedule. To date, our maximum drilling rate has been approximately 35 feet (10.7 meters) per hour and we have been averaging approximately 15 feet (4.6 meters) per hour.”
Related posts:
- Zion Drilling Report
- Zion Oil & Gas Signs Drilling Contract
- Zion Begins Drilling
June 22, 2009
We just returned from the Zion Oil & Gas third annual shareholders’ meeting in Dallas Texas. From the management reports and interviews with Zion stockholders a sense of positive expectation seemed to theme the event. The fact that Zion is actively drilling the Ma’anit-Rehoboth #2 (currently below 15,000 feet) and has capital reserves to finish the well and drill a second (Elijah #3) added to the optimism of the meeting.
I interviewed company management including founder John Brown, CEO Richard Rinberg, President Glen Perry, Chief Legal Officer Martin VanBrauman, and several company directors and stockholders. These interviews and other footage from the meeting should be up on Zion’s site and YouTube soon. I’ll keep you informed.
One of the greatest pleasures was to visit with Zion stockholders and Oil in Israel newsletter readers, including Bob Bradshaw, Bob Stenzl, Cameron Lorimer and others. I commented to CEO Richard Rinberg that Zion shareholder’s weren’t just ordinary investors, they were totally committed to Zion’s mission. He agreed.
There was time after the presentation for questions and answers. One of the best was “In the Ma’anit Rehoboth #2, you have a Triassic target (about 15,000 feet) and a Permian target (about 18,000 feet); how do you know when you’ve discovered something?” As the oil professional, Glen Perry’s answer explained how a multi-well program worked. Zion doesn’t plan to stop drilling at the Ma’anit-Rehoboth #2 until it has reached its Permian target of 18,000+ feet. Then they will immediately move the drill rig to the Elijah #3 site on the Asher license and begin the new well while analyzing the Ma’anit Rehoboth #2 for production. There’s been no word yet on potential hydrocarbons in the hole, but by the time Zion reaches the Permian, they should have a pretty good idea of gas and/or oil presence. From there, they’ll determine how to develop the the well for production.
Of course, Zion founder John Brown addressed the question: “How do you know when you’ve discovered something?” much more simply. His answer:“When the men on the rig yell, ‘Thar she blows!’”
All in all, it was a very good meeting. 
No related posts.
June 22, 2009
“And of Zebulun he said, Rejoice, Zebulun, in thy going out; and, Issachar, in thy tents. 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 33:18-19
Zion Oil & Gas, Inc. (NYSE Amex: ZN) reported today that it has been notified by the Israeli Petroleum Commissioner’s office that the Company has been awarded a preliminary petroleum exploration permit with priority rights on approximately 165,000 acres onshore Israel. The permit area is adjacent to and to the east of Zion’s Asher-Menashe license area and is in the area that was formerly within Issachar’s and Zebulun’s ancient biblical tribal areas, consequently Zion has named the area the ‘Issachar-Zebulun Permit Area’.
The Issachar-Zebulun Permit extends Zion’s petroleum rights from the Mediterranean at Caesarea across the Carmel Mountains to Megiddo and through to the Jordan River immediately south of the Sea of Galilee. It increases Zion’s total petroleum exploration rights area to approximately 327,000 acres.
Zion has also been notified by the Israeli Petroleum Commissioner’s office that its transfer of a three percent (3%) overriding royalty interest from each of the Company’s Joseph and Asher-Menashe oil and gas licenses in Israel (six percent (6%) overriding interest in aggregate) to the (Swiss) Abraham Foundation and the (Israeli) Bnei Joseph Amuta (Foundation), has been approved by Israel’s Petroleum Commissioner. Currently Zion does not generate any revenues.
Lastly, the Israeli Petroleum Commissioner has granted Zion’s request for a six month extension on its drilling obligation on the Asher-Menashe license from July 1, 2009 to January 1, 2010 to allow Zion adequate time to finish drilling the Ma’anit-Rehoboth #2.
Zion’s Chief Executive Officer, Richard Rinberg, said today: “We are very pleased to have been awarded a new permit, to have the transfer of the royalty interests to the two charitable foundations confirmed and, as requested, to have been granted a six month extension on our drilling commitment for the Asher-Menashe license. We continue to implement our exploration and drilling program and build on our progress to date. The drilling operations on our Ma’anit-Rehoboth #2 well are proceeding as planned and are ahead of schedule. Our current rights offering will soon end successfully, so presently our funding is in good shape.”
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres and the Issachar-Zebulun Permit Area, adjacent to and to the east of Zion’s Asher-Menashe license area, covering approximately 165,000 acres. Zion’s total petroleum exploration rights area is approximately 327,000 acres.
Related posts:
- Zion Oil Applies for Issachar-Zebulun License
- Zion to Commence Drilling
- Zion Oil Announces Rights Offering
June 10, 2009
Zion just announced that it will extend its subscription rights offering (supposed to close today, June 10) to June 24th. This is great news for any shareholder who hasn’t taken advantage of the offering yet, but it seems like most everyone has. The offering has already raised $18 million out of a possible $21 million. That means the full $21 million by June 24 should be an easy task.
But what does that mean to Zion shareholders and the big picture in the hunt for Israel’s oil?
I received an e-mail a few minutes ago from a shareholder worried about Zion’s sudden after hours stock drop to $7.77 (it was trading at $8.96 when the market closed). Today’s Zion Oil stock price is completely irrelevant in the big picture.
Let me explain.
In February Zion shares were trading at a high of $17.03 and everybody was just giddy with excitement. Of course, Zion wasn’t drilling for oil in February, the rig was still in Turkey, the crew couldn’t get Israeli work permits and even if Zion could work through all of their logistics problems, they barely had enough cash reserves to finish the first stage (Triassic) of the Ma’anit Rehoboth #2.
Today people are wringing their hands over the stock price and Zion has a rig, a crew, a hole that’s 13,600 feet deep and $18 million (soon to $21 million) in the bank. That’s enough to finish this hole to the Permian (the real target) and drill another well.
Folks, I’m not interested in today’s stock low or February’s high; I’m interested in finding oil in Israel. Today Zion is in a position to do that. If you’ve been reading this newsletter for long you know I’m not a Zion Oil employee, agent or shareholder. I’m here to see God’s promise and my father’s message of Israel’s oil come to fruition. The promise of Israel’s oil in closer right now than it ever has been.
On a personal note: I’ve always stayed away from owning Zion stock or stock in any company looking for oil in Israel because I wanted never to be accused of being ‘biased’ by people who criticize the story of Israel’s biblical promise of oil. Well, I’ve decided to change that. The critics will always be critics; I’m buying Zion stock. Like grandma used to say, “In for a dime, in for a dollar.” I’m in.
Related posts:
- Zion Oil Announces Rights Offering
- Zion Oil Raises $6.6 Million+ in Public Offering
- Zion Oil & Gas Public Offering Update
June 10, 2009
“… but our citizenship is in heaven, from which we also eagerly wait for a Savior, the Lord Jesus Christ.” (Philippians 3:20)
Since this is the last week of our Thriving in Tough Times series, I’ve been reading over the last ten letters (the whole series) in order to review what we’ve covered and come away [...]
June 9, 2009
Thriving in Tough Times Part 10
“For the sun rises with scorching heat and withers the plant; its blossom falls and its beauty is destroyed. In the same way the rich man will fade away even while he goes about his business.” (James 1:11)
There’s nothing pleasant about tough times. Employment is better than unemployment. Paying [...]
June 8, 2009
Noble Energy’s natural gas discovery off of Israel’s northern coast has changed Israel’s energy future. Noble’s Tamar field now has estimated gas reserves of 5 trillion cubic feet and an estimated daily production rate of 30 - 150 million cubic feet per day. This field alone is enough to power Israel’s energy needs for the next 20 years.
Because of the infrastructure required to transport the offshore gas to market, production won’t be online until 2012. But that time frame coincides with Israel converting the country’s oil and coal fired electrical generating plants to natural gas. Even then, Israel should have enough natural gas to become an energy exporting nation.
Energy trouble is already brewing with Israel’s neighbors. Israel has also taken a tremendous amount of world criticism by not buying natural gas from fields off the Gaza coast and blocking the sale of Gaza gas to Egypt because they know that at least some of the money from Gaza gas sales will go into funding further Hamas arms purchases. By buying Gaza gas, Israel would, in effect, be funding Hamas terrorism.
Now, Reuters reports Lebanese official, Mohammed Kabbani stating, “‘Noble Energy’s find proves that the (Lebanese) shore is rich in gas and that there is a possibility that we have a common basin, between Lebanon and the Occupied Palestinian territories ….’ [H]e feared that Israel ‘can extract mounts of gas from the depths of Lebanon’s territorial waters if there is a common gas basin. If that basin extends to Lebanese waters, then we want to warn this company from infringing on our rights,’ Kabbani said, adding the parliamentary committee had requested the government take action.”
(full article)Notice Kabbani’s use of “Occupied Palestinian territories” rather than ‘nation of Israel’. If Israel’s neighbors won’t even recognize her right to exist, what makes us think they will recognize Israel’s right to her own gas and oil discoveries? When Israel discovers oil on-shore, I guarantee you, the anti-Israel world will claim the discovery is an encroachment on ‘Palestinian’ resources and demand that Israel cease production (which, of course, she won’t do) until a world court can ’sort out’ who is really entitled to the oil. Israel is accustomed to the neighbors claims that she is squatting on her own land and she is growing accustomed to world opinion continually biased against her. But the oil and gas within her geographical boundaries and territorial waters are a part of the inheritance G_d gave her father Jacob, and that inheritance does have an expiration date. Complaints and false claims against Israel have been a part of her reality since May 14, 1948; they’ll increase exponentially on the day she becomes energy rich, that’s a given. Israel must and will stand firm in the midst of blessing as she always has in the midst of struggle. We must stand with her.
Zion Oil drilling at the Ma’anit Rehobeth #2 reaches beyond 12,000 feet. Zion reports that, as of quitting time Thursday, their drill bit was at 12,630 feet - 1310 feet deeper than the last report. In the 2005 Ma’anit #1 well Zion began seeing hydrocarbon shows at 12,000 feet. Zion’s full report is below.
Zion's Aaron Kahn
| Dear Shareholder and/or Friend of Zion…
Drilling Operations on the Ma’anit-Rehoboth #2 Well
In previous emails, I have highlighted the 2,000 horsepower drilling rig and rig crews, from Turkey, the 5-person directional drilling team from Italy and our drilling supervisor from Texas. Continuing with the theme of the equipment and people involved in drilling our well, this week I would like to bring into the limelight Zion’s mud logging unit and also one of Zion’s geologists, Aaron Kahn.
Aaron is from Columbus, Ohio and qualified as a Geologist at the School of Earth Sciences, Ohio State University. He is a member of the American Institute of Professional Geologists, the American Geophysical Union and the Israel Geological Society. Aaron lives in Israel and is currently in charge of our mud logging unit. He studied Well Log Analysis at the Colorado School of Mines and Mud Logging in Houston, Texas. The photograph above, taken last week, shows Aaron in the mud logging unit, next to the drilling rig, at the Ma’anit-Rehoboth #2 drilling site.
During the drilling of a well, a drilling fluid, called ‘drilling mud’, is used. The drilling mud consists of water and bentonite (a type of clay that will stay suspended in water) together with some (non-toxic) chemicals.
The drilling mud is stored in mud tanks on the ground beside the rig and using mud pumps, the mud is pumped through the drill string where it sprays out of nozzles in the drill bit, cleaning and cooling the drill bit in the process. The mud then carries the rock “cuttings” up to the surface where the cuttings are then filtered out and the mud returns to the mud pits.
The drilling mud not only cools and lubricates the drill bit and removes rock cuttings from the well, but also controls the formation pressures and powers the downhole motor.
The mud logging unit is a mobile laboratory at the well site and contains the scientific equipment required to examine drill cuttings under a microscope and produce a ‘mud log’, (a compilation of the drilling parameters and description of the well cuttings including any traces of gas and oil, as the well is being drilled).
After the drilling phase, the mud log can be used, along with the other scientific data, to help with appraisal and evaluation of the well.
Drilling Progress Report
Here is (weekly) Progress Report #4, for the week ended Thursday, June 4, 2009. The Report is from Zion’s President and Chief Operating Officer, Glen Perry.
“As I mentioned last week, the remaining drilling operations on the Ma’anit-Rehoboth #2 well can be divided into five steps:
(1) Drilling directionally into the Triassic formation, a depth of approximately 15,400 feet (4,750 meters).
(2) Appraisal and evaluation of the Triassic formation using electrical wireline well logs.
(3) Setting and cementing casing at that depth.
(4) Drilling deeper to the Permian formation, a depth of approximately 18,000 feet (5,500 meters).
(5) Appraisal and evaluation of the Permian formation using electrical wireline well logs.
This past week we have continued drilling towards our Triassic formation target. We have now reached a depth of approximately 12,630 feet (3,850 meters).
The drilling is going very well indeed. To date, our maximum drilling rate has been approximately 35 feet (10.7 meters) per hour and we have been averaging approximately 15 feet (4.6 meters) per hour.
Rights Offering
Our ability to reach the deep Permian formation is dependent on us raising further funds, so we are holding a Rights Offering. Anyone who was a stockholder on the record date of May 4, 2009, has the right to purchase some more Zion stock at $5.00 per share of stock.
If you are a stockholder, I hope you will exercise your rights to purchase Zion stock at $5.00 and even consider an over-subscription.
Please be aware that the rights offering is set to expire on June 10, 2009. Although we may, at our discretion, extend that expiration date, if you do want to exercise your rights before they expire, don’t wait until it is too late.
Proxy
Finally, if you have received a Proxy voting form, it would help us if you would vote. You can vote by internet, by telephone or by mailing the completed form, so please take two minutes and make your vote count.
Psalm 51:18 - In your good pleasure, make Zion prosper…
Thank you for your continued support of Zion, and
Shalom from Israel
Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com
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| FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, drilling efforts and potential results thereof and plans contingent thereon, 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 Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the rights offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).
The securities are offered by prospectus only, and only within those States and other jurisdictions in which the securities may be sold, and this announcement is neither an offer to sell nor a solicitation of any offer to buy in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities of any such state or jurisdiction.
More information about the offering is available at www.zionoil.com. A copy of the prospectus can be obtained on request, by calling toll free 1-888-TX1-ZION (1-888-891-9466) or by contacting Kim Kaylor at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610; email: dallas@zionoil.com |
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Related posts:
- Zion Oil Announces Rights Offering
- Zion Drilling Report
- Zion Oil Announces Revised Drilling Schedule
