Headquartered in Dallas, Texas, and with offices in Caesarea, Israel, Zion Oil & Gas Inc. (ZN) is an exploration stage company looking for oil and gas in Israel. They explore for oil and gas in onshore areas between Tel-Aviv and Haifa. The company has a current market capitalization of $54.65 million and trades on the American Stock Exchange (AMEX).
Zion Oil & Gas Inc. holds two petroleum exploration licenses. These are the Joseph and Asher-Menashe Licenses between Netanya on the south and Haifa on the north. These licenses cover a total of roughly 162,000 acres. Mr. John M. Brown founded Zion Oil & Gas in April 2000. His mission for the company is to explore for oil and gas in Israel and reach production levels that will help Israel become an energy-independent country. Incorporated on July 9, 2003, the company came into being because of an inspirational visit by Mr. Brown to Israel in 1985.
Zion’s Joseph License covers approximately 83,000 acres. The company received the license on October 11, 2007. They have an initial term of three years, and this license is extendable for up to seven years. The license is convertible into a production lease if the company discovers commercial quantities of oil or gas. The Joseph License is on the Israeli coastal plain, south of the Asher-Menashe License, between Caesarea in the north and Netanya in the south.
The company’s Asher-Menashe License is a petroleum right granted by the State of Israel. It allows the oil and gas operator to drill on the territory of the license. Zion’s Asher-Menashe License covers approximately 81,000 acres. The company received this license on June 10, 2007 and it has an initial term of three years, and is extendable for up to seven years. In addition, this license is also convertible into a production lease if Zion finds commercial quantities of oil or gas.
In August, Zion Oil & Gas reported their results for the quarter ended June 30, 2008. The company reported a net loss of $1,169 thousand or $(0.12) per share for the second quarter of 2008 compared to a net loss of $10,263 thousand or $(1.03) per share for the same quarter in 2007. The company has no revenues, as it is still an exploration stage company.
On Monday, of this week, the company announced that they and Aladdin Middle East (AME) have signed a drilling contract. Last week, Zion’s Chief Executive Officer, Richard Rinberg, and the President and Chief Operating Officer of Zion, Glen Perry, visited AME’s offices in Ankara, Turkey. They inspected the company’s rig and equipment yard, and met with key AME personnel to finalize the terms of the drilling contract. The parties executed the contract on September 12, 2008. Under the terms of the contract, AME has committed to providing a completely refurbished and updated 2,000 horsepower rig and crews and to drill Zion’s planned Ma’anit-Rehoboth #2 well ‘directionally’ to below 18,000 feet.
Zion Oil & Gas Inc. continues their exploration activities in Israel. Their mission is to tap the potential of the region for the nation’s benefit. Their goal is to explore in this tradition-rich region for the profitable growth of their company and investors alike.
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