Zion Oil & Gas, Inc. (Nasdaq: ZN) announces they are actively sourcing a drilling rig for 2020 operations.
“We have started our initial phases of sourcing a drilling rig for our 2020 exploration plans,” Zion’s COO, Robert Dunn said. “We view this as an opportune time to move forward with our 2020 plans for further oil and gas exploration in onshore Israel.”
“As we move forward with our exploration efforts, we were delighted to learn that the consolidated derivative suit filed against Zion in Delaware has been dismissed,” stated Zion’s President, Bill Avery. “In addition, we filed a Form S-1 registration statement with the Securities and Exchange Commission (‘SEC’), which was subsequently declared effective.”
DRILLING RIG FOR 2020
Zion Oil and Gas is in the initial phases of sourcing a drilling rig, subject to securing adequate funding. Zion is currently working with logistics contractors on the importation framework, along with the identification of rigs within the Eastern Hemisphere. Zion views this as an opportune time for sourcing a rig due to the depressed state of the drilling market.
FORM S-1 FILED AND ACCEPTED BY THE SEC
On November 27, 2019, Zion submitted an application to the SEC to convert its existing S-3 registration statement to a new S-1 registration statement. The SEC gave Zion a “no comment” letter on December 5, 2019, and Zion’s new S-1 registration statement became effective on December 11, 2019, with the continuation of the DSPP.
DERIVATIVE SUIT DISMISSED
On November 26, 2019, Richard G. Andrews, United States District Judge for the District of Delaware, signed an Order dismissing the consolidated derivative suit filed against certain current and former directors of Zion as well as Zion as a nominal defendant. The Plaintiffs’ deadline to appeal the Order was on December 26, 2019, and Plaintiffs did not appeal.
Judge Andrews issued an eighteen-page Memorandum Opinion holding that Plaintiffs had not sufficiently demonstrated the futility of making demand on Zion’s Board of Directors prior to filing suit, noting “I do not find that the Plaintiffs have pleaded with particularity any facts that suggest the Director Defendants acted in bad faith or otherwise consciously disregarded their oversight responsibilities in regard to Zion’s prospects for discovery and extraction of oil.”
The securities-class-action and books-and-records-demand matters on which Zion has previously reported remain pending.
SEISMIC PROCESSING AND INTERPRETATION CONTINUES
With Agile Seismic (Houston, Texas, and Belgrade, Serbia) continually applying state of the art processing techniques to Zion’s seismic data, Zion is beginning to see answers to its previous questions from the drilling of the MJ-1 well. Zion is pleased with the current progress and quality of the data to date and looks forward to the final product.