Zion Oil & Gas Granted Exploration Licence Extension in Israel

Source: www.gulfoilandgas.com 7/7/2016, Location: Middle East

Zion Oil & Gas reported that the Israeli Petroleum Commissioner modified Zion's work plan deadlines and awarded the Company a one-year extension on its Megiddo-Jezreel petroleum exploration licence, subject to Zion signing a drilling contract and submitting a detailed drilling engineering plan by October 13, 2016 and spudding an exploratory well by December 1, 2016. This extends the time in which to conduct exploratory activities on this license by one extra year and should enable the Company to potentially drill up to three wells in that time period.

Zion's Megiddo-Jezreel Licene covers a large area of approx. 99,000 acres south and west of the Sea of Galilee that includes the Jezreel and Megiddo valleys. Subject to obtaining an appropriate drilling rig and operating crew and finalizing all needed permits, the Company plans to begin building the drill pad location from which to drill the Megiddo-Jezreel-1 well this year.

Agreement-In-Principle to Form 'Zion Drilling'

As previously disclosed, Zion and a U.S.-based oil field service company with extensive global operational experience recently reached an agreement-in-principle to form a special purpose subsidiary to own and operate a drilling rig. The oil field service company will contribute the rig and Zion will contribute shares of common stock. Zion and the oil field service company are expected to own the subsidiary in equal measure.

The parties are in the process of negotiating the terms of a legally binding agreement. Zion needs to raise substantial amounts of cash for working capital to be able to test and prepare the rig, ship the rig, and field a crew to operate the rig in Israel. Once Zion secures its own rig and establishes the Zion Drilling subsidiary, the Company will no longer be faced with seeking drilling contractors each time it drills a new well and will have access to quality drilling services that have been historically unavailable in Israel.

Recently, the Company filed with the SEC our Prospectus Supplement for a $1,000 public bond offering. Unlike prior offerings, this is not a shareholder rights offering that is open only to existing shareholders. Rather, this bond offering is open to all members of the public. This is a best efforts minimum-maximum offering where the Company needs to raise a minimum of $2.5 million dollars to close on the offering. The maximum amount that we can raise under this offering is $12 million dollars, the proceeds of which will be used to drill the Megiddo-Jezreel #1 well.

Zion is offering (through Network 1 Financial Securities, Inc., our Placement Agent) 12% Convertible Senior Bonds to the public at principal or par value of $1,000. Bond holders are entitled to receive a 12% annual interest rate paid on the Principal, in arrears, beginning October 2, 2017. Interest payments will be paid annually, in arrears, either in cash or in kind (shares of Zion common stock).

The offering will terminate on September 1, 2016, unless extended up to 60 days at the Company's discretion.




Namibia >>  11/1/2024 -  Global announces its financial results for the year ended 30 June 2024.

Summary

Operational
· The focus ...

Norway >>  11/1/2024 - Vår Energi ASA completes the sale of its 20% interest in the Bøyla field to Concedo AS for an after-tax consideration of USD 24 million.

Th...


United Kingdom >>  11/1/2024 - On 29 October 2024, Challenger Energy, the Atlantic margin focused energy company, announced the closing of the farmout of a 60% interest in the AREA ...
Australia >>  10/31/2024 - Woodside is pleased to announce the completion of the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture to JERA, ...

Canada >>  10/31/2024 - Company secures 100% off-take agreement with Glencore for the mixed hydroxide precipitate (“MHP”) production from the Rochester Hub on market terms
Gabon >>  10/31/2024 - Panoro Energy ASA (“Panoro” or the “Company”) is pleased to announce that following the provisional award of a 25 per cent participating interest in e...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.