Why Did God Allow This to Happen?
September 22, 2009
I had lunch with a friend last week and he had a question for me. He mentioned, Jaycee Lee Dugard, the little girl in California who was kidnapped by Phillip and Nancy Garrido and used as a sex slave for eighteen years, bearing two children by Garrido during the time. My friend’s question was, “Why did [...]Drilling Complete on Ma’anit-Rehoboth #2
September 18, 2009
Zion Oil CEO Richard Rinberg announced to shareholders today in his weekly drilling update that drilling of the Ma’anit-Rehoboth #2 well has been completed at 17,913 feet; 131 feet short of its intended target depth. From company reports, it still isn’t clear whether or not the bottom of the Ma’anit-Rehoboth #2 is in an upper Permian or lower Triassic stratum.
Rinberg stated that, “There were a number of factors that influenced our decision not to drill deeper.” But the only factor he gave stockholders was the increased risk of loosing the well from a cave-in due to a long section of ‘open hole’ (uncased) at the bottom of the well. Given the fact that the distance between the drill bit and the motor was nearly 3.4 miles, losing the well due to a cave-in or other catastrophic failure is a very real concern. Whatever the other factors influencing the decision to stop drilling were, they weren’t stated by Rinberg – so we’ll have to leave any other reasons to speculation.
Speculation, however, is something Zion’s managers can’t do – at least not publicly. Because the company is publicly held and in the process of another stock offering, SEC regulations prohibit Zion’s management from any form of public ’speculation’ that could be construed as an attempt to paint a picture of the company’s future prospects in way that might not be a 100% factual projection at the moment. The SEC calls these “Forward Looking Statements”. That means Zion’s management is pretty much limited to telling us what they ‘know’ they’ve got in the Ma’anit-Rehoboth #2 well and not what they ‘think’ they’ve got. Which, at this point, doesn’t make for much news.
So if you’re going to draw conclusions, you can draw some of them from what’s not said :
- The Ma’anit Rehoboth #2 isn’t a gusher (“Gusher” is an old term for a self pressurized free-flowing oil well). If oil was flowing out of the top of the well, it would be a fact, not a “Forward Looking Statement.” Zion shareholders (and the rest of the world) would know about it.
- There’s no definite agreement as to whether or not the bottom of the Ma’anit-Rehoboth #2 is in the Permian.
- The Ma’anit Rehoboth #2 hasn’t suffered any sort of catastrophic failure. As sparing as Zion’s management has been with potential good news, to their credit, they’ve always been forthcoming in reporting any bad news. If any sort of trend can be discerned, as far as Zion is concerned, no news is more likely good news than bad … or simply, no news.
- If you follow the general energy exploration news coming out of Israel as closely as I do (that’s pretty close), then you may have discerned by now that Israel is in the beginnings of an energy ‘gold -rush’. The HUGE natural gas discovery off the Haifa coast has insured Israel’s energy (gas and electric) needs in the foreseeable future. Givot Olam has reported, and the state of Israel has accepted, that they have nearly a billion barrels of oil under the ground just south of Zion’s license area; they just haven’t been able to get it to the surface yet (by the way – they’re drilling as I write). Oil discoveries in the Dead Sea region (not huge, but there) are being reported and same companies involved in the off shore discovery are now buying into the Dead Sea exploration. Translation: Oil and gas discoveries in Israel aren’t a future possibility, they’re a present reality.
Now let’s draw some conclusions from what has been said:
- The Ma’anit-Rehoboth #2 well is at 17,913 feet (2071 feet deeper than the Ma’anit #1).
- Their are “seven zones that warrant completion testing” (I can’t locate documentation, but I believe there were three to five “zones that warranted testing” in the Ma’anit #1).
- What’s been concluded is the “drilling phase”. The determination as to whether or not the well will produce commercial hydrocarbons comes in the “completion phase.”
- The rig will soon be moved to the next drilling site, at the ‘foot of Asher.’ Zion Oil & Gas is a professional oil exploration company with multiple leases and multiple drilling prospects in the nation of Israel. Zion Oil is not a ‘one hole wildcatter.’ There is absolutely no reason to give up on the Ma’anit-Rehoboth #2 at this point, the well hasn’t even been tested yet. But regardless of how much or how little oil and/or gas the Ma’anit-Rehoboth #2 produces, Zion will continue drilling for oil and gas in northern Israel.
Now let’s look at the big picture:
- Zion Oil owns most of the exploration license area in northern Israel – 327,000 acres.
- The Ma’anit-Rehoboth #2 is among the deepest wells ever drilled, in one of the most promising locations, drilled with the best equipment, manned by the most adept crew, tested with the most sophisticated equipment that onshore Israel has ever seen. That’s not hyperbole, it’s fact.
- Geology and recent experience have proven – natural gas and oil lie beneath the land (and offshore) of Israel.
- If you want big picture, here’s the biggest – Zion Oil, Noble Energy, Delek, Givot Olam and the rest didn’t promise Israel’s children “The blessings of the deep that lies beneath.” Israel’s God did (Genesis 49:25). From where I sit, it looks like He’s keeping His promise. We’ll find out more about the Ma’anit-Rehoboth specifically as Zion begins their “completion phase”.
- Just as a reminder, I’ve dug up a photo taken at the Ma’anit #1 in 2005. That’s a hydrocarbon flare from the well – it’s down there.
Keep the faith.
Related posts:
- Zion Drilling into the Permian
- Zion Logs the Ma’anit Rehoboth #2
- Zion Oil Announces Revised Drilling Schedule
In Defense of Strays
September 11, 2009
“So the man gave names to all the livestock, the birds of the air and all the beasts of the field.” (Genesis 2:20) We’ve got a cat named ‘Baby’. Let me back up. We’ve got four cats, six dogs, somewhere around fifty fish (the kind you feed, not the kind that feed you), and we’re house-parents [...]Zion Oil CEO Richard Rinberg on NASDAQ CEO Signature Series
September 10, 2009
NEW YORK, Sep 9, 2009 (GlobeNewswire via COMTEX)
Zion CEO Richard RInberg (center)
Veteran business journalist Joya Dass joins Richard Rinberg, CEO, Zion Oil & Gas, Inc. (ZN) to discuss the company’s industry, strategy, financials and positioning. (click here to view the interview video)
Richard Rinberg was appointed Chief Executive Officer of Zion Oil & Gas
in March 2007. He has been a Director of the Company since November 2004, and served as President since October 2005. Mr. Rinberg, a private investor since 1996, previously served as Managing Director of the Rinberg Group, a corporate group in the UK active in the casting of precious metals for the jewelry industry, jewelry manufacturing, property development and securities trading. Mr. Rinberg holds a Bachelor of Science Honors Degree in Mathematics from University College, University of London. He is a Member of The Institute of Chartered Accountants in England and Wales.
Related posts:
- October 24, 2008 Letter From Zion CEO Richard Rinberg
- Zion Oil & Gas Rings the NASDAQ Bell
- Zion Oil & Gas Appoints New Board Member
Israeli Group to Start Drilling for Dead Sea Oil
September 10, 2009
Tzuk Tamrur site near the Dead Sea
The Delek Group headed by Yitzhak Tshuva previously headed the consortium that found billions of dollars worth of natural gas just 50 miles off the coast of the northern Israel city of Haifa. Tshuva is convinced that other sources of energy exist in the country, including oil deposits worth at least half a billion dollars under and around the Dead Sea.
Following his consortium’s natural gas find earlier this year, Tshuva said he believed Israel would very soon become energy independent, and even start exporting natural gas, leading to a major economic revolution in the country.
But Tshuva won’t be alone in his search for oil in Israel. Texas-based, Christian-run Zion Oil & Gas has been searching for oil in Israel since 2000. Founder John Brown says the Bible makes it clear Israel will be energy independent in the last days. The company’s two exploratory drillings have so far given inconclusive results, but have sparked enough optimism for Zion Oil & Gas to continue its operations.
Related posts:
- A Dead Sea Oil Discovery in Jordan?
- Dead Sea Oil Discovery
- Exploratory Drilling for Oil in Judean Desert Passes Final Hurdle
John Brown Interviewed on Fox Business
September 10, 2009
The interview was aired early on the morning of September 3 – the day after Zion ‘rang the bell’ on Wall Street announcing the company’s entry into the NASDAQ global market.
View the interview by clicking on the image below:
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- Zion Oil & Gas Rings the NASDAQ Bell
- Interview Between Pastor John Hagee & John Brown
- Zion Oil Goes to NASDAQ
Breaking Free of Groundhog Day
September 4, 2009
“But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self-control. Against such things there is no law.” (Galatians 5:22-23) For the last few weeks we’ve talked about the old man who was crucified when we became new creatures in Christ. But that old man (or old woman) keeps popping [...]Zion Logs the Ma’anit Rehoboth #2
September 3, 2009
Last week, Zion Oil conducted logging operations (gathering data inside the wellbore) down to a depth of 17,040 feet. Results from the logging operations will help Zion geologists determine if and where potential hydrocarbons exist in the well and how to proceed with drilling or possible production.
Below is a synopsis of last week’s efforts by Zion CEO Richard Rinberg:
An important part of our geological work during drilling is to continually examine the rock cuttings from the well bore (brought up to the surface by the circulating drilling mud) and match that physical evidence against the ‘expected’ rock cuttings. In our database of scientific information, we maintain a computer model of the expected rock strata.
As more information is gathered, the computer model is amended and in the event of a material difference between the ‘actual’ and the ‘expected’, it may be highly desirable to obtain further information by ‘logging’.
You may remember (from our previous logging) that the definition of ‘logging’ is: ‘to test and evaluate the well, using electrical wireline well logs’.
The ’sonde’ is lowered down the hole on a ‘wireline’ and various measurements are recorded.
The ’sonde’ is a cylinder filled with instruments that can sense the electrical, radioactive and sonic properties of the rocks (and their fluids) and the diameter of the wellbore.
The ‘wireline’ is an armored cable with steel cables surrounding conductor cables in insulation. It is reeled out from a drum in the back of the logging truck.
The data from the sonde is transmitted up the cable to instruments in the logging truck and recorded.
Using state-of-the-art Baker Atlas logging equipment, we are able to obtain very high-quality data. This past week, we logged an interval of approximately 500 meters; from a depth of approximately 4,825 meters down to approximately 5,325 meters.
The logging will enable us to make decisions based on scientific evaluation rather than hunches and guesstimates.
So, this past week, we are still at a depth of approximately 17,470 feet (5,325 meters), close to our final target of approximately 18,040 feet (5,500 meters).
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Tamar partners to raise large sums for development
September 3, 2009
The partners in the Tamar and Dalit offshore natural gas fields are preparing to raise capital to develop Israel’s largest natural gas field. Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL) has published a shelf prospectus to raise hundreds of millions of shekels in the coming weeks and is currently working on the structure of the offering.
Delek Energy controls Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), which each own 15.625% of the Tamar and Dalit prospects. Last week, both companies, authorized Noble Energy Inc. (NYSE: NBL), which owns 36% of the prospect, to buy $230 million worth of equipment and services by 2011 to develop the gas fields. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), which owns 28.75% of the prospect approved purchases of up to $160 million.
The partners in the Tamar and Dalit offshore natural gas fields are preparing to raise capital to develop Israel’s largest natural gas field. Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL) has published a shelf prospectus to raise hundreds of millions of shekels in the coming weeks and is currently working on the structure of the offering.
Delek Energy controls Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), which each own 15.625% of the Tamar and Dalit prospects. Last week, both companies, authorized Noble Energy Inc. (NYSE: NBL), which owns 36% of the prospect, to buy $230 million worth of equipment and services by 2011 to develop the gas fields. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), which owns 28.75% of the prospect approved purchases of up to $160 million.
Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Gas Exploration LP, which owns 4% of Tamar and Dalit, is also getting ready to raise capital. Dor Alon plans to split its holding in the prospects from its gas stations and convenience stores business, and create a partnership that will hold the Tamar stake. Dor Alon is working with the Israel Tax Authority on this new structure, which will make it possible for the new partnership to raise capital directly to develop the gas fields.
Dor Alon is meeting with institutional investors to hold a bond issue of up to NIS 250 million for this purpose.
Published by Globes [online], Israel business news – www.globes-online.com – on September 1, 2009
Related posts:
- Gas Field Near Haifa Exceeds Expectations — Again!
- More Detail about the Haifa Offshore Gas Exploration
- Haifa Gas Discovery Bumped to 5 Trillion Cubic Feet
Zion Oil & Gas Rings the NASDAQ Bell
September 3, 2009
Zion Chairman John Brown, CEO Richard Rinberg and company President Glen Perry got the NASDAQ market going on Wednesday by ringing the opening bell.
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