Zion Oil Begins Drilling Elijah #3
October 29, 2009
According to Zion CEO Richard Rinberg’s ‘Zion Oil & Gas Newsletter’, Zion Oil began drilling the Elijah #3 well last week and by last Friday’s report, drilling depth on the Elijah #3 had reached 400 feet.
The Elijah #3 well site is located on northern Israel’s coastal plain near Mount Carmel, between Caesarea and Haifa, in Zion’s ‘Asher/Menashe” license area. Zion Oil’s Elijah #3 isn’t the first oil well to be drilled in this area and Zion Oil isn’t the first company to come to this region, known in the Bible as the ‘foot of Asher’, seeking the fulfillment of an ancient Bible prophecy. “And of Asher he said, Let Asher be blessed with children; let him be acceptable to his brethren, and let him dip his foot in oil.‘” (Deuteronomy 33:24)
Wesley Hancock
In 1961, Bible believing Californian, Wesley Hancock was awarded an exploration license area of 97,000 acres including Mount Carmel and extended into parts of the Jezreel Valley, known as the “Valley of Megiddo,” site of the prophesied last days battle of Armageddon. Armed with a report forecasting Israel’s oil potential, and his Asher passage in Deuteronomy 33, Wesley went looking for Asher’s oil. On September 19, 1963 Wesley spudded the Asher #1, north and east of Mount Carmel near Haifa. Asher #1 had reached a depth of 7,800 feet when the drill head twisted off, taking seven drill collars with it. After the twist-off, chances of drilling any deeper were nil. By January of 1964, testing in the hole above 7,800 feet revealed that the Asher #1 was dry. In 1965 Wesley commissioned a hydrocarbon survey of his license area. This was the first petroleum survey of its kind in Northern Israel. The survey results led to choosing his location for the Asher #2 well. Hancock drilled the Asher #2 to a depth of 4,300 feet and core samples showed traces of oil. The Asher #2, however, was shut down; Hancock, without any other investors, had run out of money and was unable to continue drilling.
Gilman Hill
In 1979 Gilman Hill, an American evangelical Christian, came to Israel looking for Asher’s oil. According to Hill, God directed him to drill for oil and showed him the well’s location during a 1978 tour of Mount Carmel. Gill had completed preliminary geological surveys and fulfilled permit requirements to begin drilling by 1980.
Hill’s well, Elijah #1, was planned to be drilled to the upper Triassic strata, a depth of 15,000 to 16,000 feet. At 8,900 feet Gilman halted the drilling. According to Hill, God gave him the message, “circumstances have changed,” Gil was convinced that he was to cease drilling until further notice from God. Gil continued his geologic research for another six years waiting for a Divine release to resume drilling. The release never came. After spending $6 million of his own money on Mount Carmel, drawn by the Bible’s promise that Asher would “dip his foot in oil,” Gilman Hill had failed to find the elusive flow.
Andy SoRelle
Crusader Castle at Atlit
About the same time Hill started drilling Elijah #1, a Texas oil man named Andy SoRelle was busy preparing to drill the Atlit #1 well near Haifa, known as the Asher Project. SoRelle’s well was spudded in February 1981, the same year Jim Spillman’s book, The Great Treasure Hunt, was released. Spillman and SoRelle were mutual supporters, each understandably interested in the work of the other. Throughout the Asher Project SoRell updated Spillman on the progress of the well they both believed would strike the oil God had promised.
At 9,400 feet the drill bit hit volcanic rock. They drilled down through another 7600 feet before finally coming into limestone again. The drill bit, now at 17,296 feet was way beyond the rig’s capacity. Fearing he would lose the hole, Atlit’s drilling supervisor shut down the operation until a larger rig could be brought in.
December 28, 1982 a new drill rig, rated at 26,000 feet was installed over the original hole. This new phase, dubbed the Atlit #II was planned to bring the well as deep as 23,000 feet. By February of 1983 the well had been cleaned out and depth had been increased to 18,000 feet.
Drilling continued without incident until, at 20,570 feet Atlit II struck oil! What oil experts call “very good shows” came to the surface; graded as light oil at 35 to 40 degrees API. SoRelle continued to a final depth of 21,431 feet. The zone of oil bearing rock, was estimated at 470 feet, from 20,570 to 21,309 feet. Two years after spudding, the drilling phase of the Atlit well was finally complete!
During development problems emerged again. Financing for the project had been on a shoe-string at best. The crew had stopped casing the well at 13,772 feet. Not having funds for additional casing and reasoning that the volcanic rock they had struggled through was stable enough to hold the hole open the crew had continued drilling in “open hole.”
As the crew was cleaning the hole in preparation for the production casing, drill collars stuck at 18,669 ft and two weeks of jarring would not break them loose. Special equipment was flown to retrieve the string (130 ft. in length) and, while cleaning the hole to “fish” with the new equipment they stuck again at the 17,772 ft mark. After ten more days of trying to break loose, they came out leaving another 8 ½ foot fish in the hole.
August 24, 1983, more than two and a half years after spudding, Andy SoRelle called it quits for the Atlit hole. Having spent more than $25 million, his own money and that of his investors, Andy gave up on the Atlit well.
The history of the search for Asher’s oil doesn’t seem very promising. But if God said of Asher, ‘… let him dip his foot in oil …’ then I’m convinced He’ll keep His promise in His own time. One thing I do know; the oil is down there. Hancock saw it and SoRelle saw it. That Asher’s oil exists is a fact, when it will be brought to the surface is the only question.
Related posts:
- Zion Begins Drilling
- Zion Oil Begins ‘Completion Testing’ of Ma’anit Rehoboth #2
- Zion Drilling into the Permian
Zerah teams with Delek to expand Dead Sea oil exploration
October 28, 2009
Thu. October 15, 2009
Zerah teams with Delek to expand Dead Sea oil exploration: In 1995, a 2,000-meter well was drilled in the Halamish section, which found oil and gas.
Zerah Oil And Gas Explorations LP (TASE: ZRAH) is expanding its activity in the Dead Sea. The company has bought the 335-square kilometer Zurim license from Fore Group Ltd. subsidiary Ginko Oil Exploration Ltd., which abuts Zerah’s license. Delek Group Ltd. (TASE: DLEKG) units owns half of a 35 square kilometer section of the Zurim License, known as the Halamish section through Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L).
Zerah will pay for the Zurim license out of future revenue from oil or gas production, if any. Zerah will pay Ginko a 2.5 percent royalty of revenue and provide it a $2 million grant, provided that an independent expert determines that the oil and gas reserves in the license are worth at least $250 million. In addition, the Supervisor of Oil at the Ministry of National Infrastructures will have to declare a discovery at the license, and the partnerships’ revenue from a discovery at the Zurim license will exceed $100 million.
In 1995, a 2,000-meter well was drilled in the Halamish section, which found oil and gas. However, no production was carried out because the price of oil at the time rendered the discovery uneconomical.
The Halamish partners intend to drill a new well at the site, which is about five kilometers from Tzuk Tamrur 4 site, where Zerah and Delek are due to begin drilling a well this month. The 2,000-meter well will cost $4-5 million. A seismic study of the structure found a closed structure with 6.6 million barrels of good-quality oil, currently worth a gross value of $470 million.
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- News Short – Zerah Oil Exploration
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Zion Oil Rights Offering Declared Effective
October 28, 2009
Globes Newswire October 13, 2009
DALLAS and CAESAREA, Israel, Oct. 13, 2009 (GLOBE NEWSWIRE) — Zion Oil & Gas, Inc. (Nasdaq:ZN – News) announced today that the registration statement for its previously announced common stock rights offering was declared effective by the Securities and Exchange Commission on October 9, 2009. The offering will be open to all holders of record on October 19, 2009 (the “Record Date”).
Under the terms of the rights offering described in the prospectus contained in the registration statement, Zion will distribute to each person who own shares of Zion common stock on the Record Date non-transferable subscription rights to purchase shares of Zion’s common stock. Each shareholder of record on the Record Date will receive 0.23 of a subscription right for each share of common stock owned on the Record Date. This is equivalent to twenty three (23) subscription rights for every one hundred (100) shares of common stock owned on the Record Date. The Company will not distribute any fractional rights; fractional subscription rights will be rounded up to the next largest whole number. Each whole subscription right entitles the holder to purchase one share of common stock at a purchase price of $5.00 per share.
Shareholders who fully exercise their rights will be permitted to subscribe for additional shares of common stock, if available, that were not subscribed for by other rights holders. The subscription rights are non-transferable. The aggregate amount of stock available in the rights offering is 3.6 million shares.
As soon as possible after the Record Date, Zion plans to mail to holders of its common stock (as of the close of business on the Record Date) a prospectus and other items necessary for exercising the rights. Shareholders who hold their shares in a bank or broker name will receive the rights offering material from their bank or broker. The prospectus will contain a description of the rights offering and other information. The subscription rights will be exercisable until the close of business on November 30, 2009, unless Zion elects to terminate the offering prior to the scheduled expiration date by giving two business days notice or unless Zion elects to extend the offering.
Related posts:
- Zion Oil Files for New Rights Offering
- Zion Oil Announces Rights Offering
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Noble Energy Declares Dividend, Stock Upgraded
October 28, 2009
PRNewswire-FirstCall
HOUSTON, Oct. 27
Noble Energy, Inc.’s (NYSE: NBL) board of directors today declared a quarterly cash dividend of 18 cents per common share payable November 23, 2009 to the shareholders of record on November 9, 2009.
Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with significant international operations offshore Israel and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Visit Noble Energy online at www.nobleenergyinc.com.
Associated Press
10/26/09
Noble upgraded to “Outperform” on increased oil focus, future accelerated production growth
NEW YORK — Shares of oil and gas producer Noble Energy Inc. have been dragged down too far by the plunging value of its natural gas assets as natural gas prices have fallen, said an analyst on Monday as he upgraded the stock.
Noble Energy’s shares are positioned to rise as the company sheds natural gas properties and shifts its investments to crude oil, which has rebounded significantly in price over the course of the year, said RBC Capital Markets analyst Leo Mariani. The move will boost shares of the company, due to better economics, given the recent rebound in oil prices, which outshine lagging natural gas prices.
Mariani said in a research note released before the start of regular trading that Noble’s share price is too-severe a discount for a company that is shifting so much of its operations to oil. He upgraded his rating on Noble’s shares to “Outperform” from “Sector Perform” and raised his price target to $90 from $85.
Mariani expects that 41 percent of Noble’s 2009 production will be based on crude, but should increase to over 60 percent by 2013.
“Noble’s best economics are in deepwater Gulf of Mexico, West Africa and Israel regions, and we expect it to devote most of its capital to these crude-weighted regions.”
Related posts:
- International Energy Agency Reports a Decline in World Oil Output
- Expect Stock Surge in US Oil and Gas Companies Exploring in Israel
- Changing Israel’s Energy Future
News Short – Zerah Oil Exploration
October 28, 2009
Jerusalem Post
Oct 27, 2009
Zerah Oil Gas Exploration fell 2.1%. The oil- and gas-exploration company said the start of drilling at the Zuk Tamrur 4 site, which had been scheduled for October, was postponed because of machine-order delays.
Related posts:
- Zerah teams with Delek to expand Dead Sea oil exploration
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Ye Are Gods?
October 27, 2009
“They know nothing, they understand nothing. They walk about in darkness; all the foundations of the earth are shaken. “I said, ‘You are “gods”; you are all sons of the Most High.’ But you will die like mere men; you will fall like every other ruler.” (Psalm 82:5-7) I read Dan Brown’s new book The Lost Symbol [...]The La-Z-Boy
October 18, 2009
By Jenny Lou Jones With the birth of our first child, Lance told me that he’d help me rock our new baby to sleep if only I’d agree to buy a La-Z-Boy. His argument was that all decent and caring fathers had one thing in common—a big, boxy wad of material that calls itself a chair. [...]Cracks in the Sidewalk
October 11, 2009
By Jenny Lou Jones During my elementary years, I walked home after school. Well, it was more like I lollygagged and meandered, especially down the big hill that ended at my house. That last perilous slope was littered with cracks in the sidewalk that I had to avoid to keep my mother’s back intact. Where did [...]Steve Spillman on ‘The Jewish Voice’ Televison Program
October 9, 2009
Steve Spillman, author of Breaking the Treasure Code: the Hunt for Israel’s Oil will appear with Jonathan Bernis, host of The Jewish Voice television program for a thirty minute interview. The show will be about Israel’s search for oil and how the Bible’s prophecy of “… the blessings of the deep” are being fulfilled in Israel today.
The show will air on several Christian television networks and independent stations beginning Monday, October 12. Don’t miss this important interview! Click here for programming times and stations in your area.
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Zion Oil Begins ‘Completion Testing’ of Ma’anit Rehoboth #2
October 9, 2009
According to Zion CEO Richard Rinberg in last week’s ‘Zion Oil & Gas Newsletter’: “In the light of the uncertainty regarding the depth of the Permian geological layer at our well site and knowing that we have found seven zones that warrant completion testing, we decided that the prudent course, for the present, was to stop drilling on this well and (i) test the seven zones mentioned, as well as (ii) carry out further analysis on the geology, using the drilling and logging data obtained in the last weeks.”
With as many questions as I receive about Zion’s progress, there seems to be a general assumption that producing oil and gas is simply a matter of drilling a hole and letting the hydrocarbons bubble out … that’s what I thought. I’ve learned it’s more involved that that. With Zion Oil in the ‘completion testing’ phase of the Ma’anit-Rehoboth #2 well, now might be a good time to explain what that is and how a ‘hole in the ground’ becomes a producing well.
Most of text below comes from the United States Department of Labor website.
Once the design well depth is reached, the formation must be tested and evaluated to determine whether the well will be completed for production, or plugged and abandoned. To complete the well production, casing is installed and cemented and the drilling rig is dismantled and moved to the next site. A service rig is brought in to perforate the production casing and run production tubing. If no further pre-production servicing is needed, the christmas tree is installed and production begins.
Well completion activities include:
This (offshore) completion diagram shows subsurface well components
Conducting Drill Stem Test: To determine the potential of a producing formation, the operator may order a drill stem test (DST). The DST crew makes up the test tool on the bottom of the drill stem, then lowers it to the bottom of the hole. Weight is applied to the tool to expand a hard rubber sealer called a packer. Opening the tool ports allows the formation pressure to be tested. This process enables workers to determine whether the well can be produced.
Setting Production Casing: Production casing is the final casing in a well. It can be set from the bottom to the top. Sometimes a production liner is installed. This casing is set the same as other casings, then cemented in place.
Installing Production Tubing: A well is usually produced through tubing inserted down the production casing. Oil and gas is produced more effectively through this smaller-diameter tubing than through the large-diameter production casing. Joints of tubing are joined together with couplings to make up a tubing string. Tubing is run into the well much the same as casing, but tubing is smaller in diameter and is removable.
Starting Production Flow: Production flow is started by washing in the well and setting the packer. Washing in means to pump in water or brine to flush out the drilling fluid. Usually this is enough to start the well flowing. If not, then the well may need to be unloaded. This means to swab the well to remove some of the brine. If this does not work the flow might be started by pumping high-pressure gas into the well before setting the packer.
If the well does not flow on its own, well stimulation or artificial lift may need to be considered.
Beam Pumping Units: If the well doesn’t produce adequately, a beam pumping unit may be installed. There are four basic types of beam pumping units. Three involve a walking beam, which seesaws to provide the up and down reciprocating motion to power the pump. The fourth reciprocates by winding a cable on and off a rotating drum. The job of all four types is to change the circular motion of an engine to the reciprocating motion of the pump.
The explanation above depicts, very simply, the completion program for most wells. Much more activity and many processes such as acidising, fracturing and nitrogen circulation may take place before the well is actually ready for production. My goal was to let you know the kind of activities that must take place before a ‘hole in the ground’ becomes a well.
When we built our house I was so excited when the framing and the roof were complete; when the contractors installed the siding and I saw the house from the outside I thought, “Wow, this baby is just about finished!” I had no idea how much time and work was involved in building the inside of the house.
I’m learning that ‘building’ an oil well is similar. There’s a lot more to it than the hole. Zion Oil is in the middle of ‘down-rigging’ now; they’re disassembling the drilling rig at the Ma’anit-Rehoboth #2 so they can move it to the Elijah #3. While they work on ‘building the inside of the house’ at the Ma’anit-Rehoboth #2, they’ll begin work on the ‘outside of the house’ at the Elijah #2 site. That’s goods news!
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