DALLAS and CAESAREA, Israel, Feb.
5, 2020 /PRNewswire/ -- Zion Oil & Gas, Inc.
(Nasdaq: ZN) announces they have entered a partially binding
letter of intent to purchase a drilling rig and has formed two
wholly owned subsidiary corporations.
"We have signed a letter of intent to purchase a drilling rig
for Zion's ongoing 2020 exploration plans," Zion's COO,
Robert Dunn said. "This rig will
have increased capabilities for onshore drilling in Israel, and we see it as a vital part of our
operations going forward."
"We were fortunate to find this rig and believe it is an
ideal fit for our plans," stated Zion's President, Bill Avery. "We are thankful for our
shareholders' ongoing support which will enable us to close the
purchase of the rig with immediately available cash at
closing."
LETTER OF INTENT FOR DRILLING RIG
Zion has entered into a partially binding letter of intent to
purchase a drilling rig, drill pipe, and all related equipment for
importation into Israel to
continue its exploration plans.
The rig is a 1600 horsepower AC Top Drive equipped rig with a
twin 1600 horsepower mud pump system with a depth capability of
20,000 ft. The rig will be equipped with 15,000 ft of heavy 5"
drill pipe along with associated well control equipment.
The rig underwent a full CAT III & IV certification in late
2017, reassuring the quality of the rig and ancillary equipment,
and it has drilled two wells since certification.
Zion and the seller plan to immediately begin negotiating a
definitive purchase agreement to close the purchase of the rig for
the agreed sum of $5,600,000, subject
to satisfactory due diligence. The rig purchase will be a cash
purchase payable in full at closing, with no financing
required.
TWO SUBSIDIARIES FORMED
On January 24, 2020, Zion
incorporated a wholly-owned subsidiary, Zion Drilling, Inc., a Delaware corporation, for the purpose of
owning the rig and related equipment, and on January 31, 2020, Zion incorporated another
wholly-owned subsidiary, Zion Drilling Services, Inc., a
Delaware corporation, to act as
the contractor providing such drilling services.
When Zion is not using the rig for its own exploration
activities, Zion Drilling Services may contract with other
operators in Israel to provide
drilling services at market rates then in effect.
Zion has the trademark "ZION
DRILLING" filed with the United States Patent and Trademark
Office and with the World Intellectual Property Organization in
Geneva, Switzerland, under the
Madrid Agreement and Protocol. Also, Zion has the trademark
filed with the Israeli Trademark Office in Israel.
Zion Oil & Gas, a public company traded on NASDAQ (ZN),
explores for oil and gas onshore in Israel on their 99,000-acre Megiddo-Jezreel
license area.
"The Lord Himself goes before you and will be
with you; He will never leave you nor forsake you. Do not be
afraid; do not be discouraged."
Deuteronomy 31:8
"Sing to the Lord, for he has done glorious
things; let this be known to all the world. Shout aloud and
sing for joy, people of Zion, for great is the Holy One of
Israel among you."
Isaiah 12:5-6
FORWARD-LOOKING STATEMENTS: This press release contains
forward-looking statements. Statements in this communication
that are not historical fact, including statements regarding Zion's
planned operations, anticipated attributes of geological strata
that may be drilled or tested in the future, Zion's ability to
enter into an acceptable definitive purchase agreement for a
qualified drilling rig, Zion's ability to successfully close
the purchase of a qualified drilling rig, import the rig into
Israel in a timely manner and
Zion's ability to successfully raise the funds needed to undertake
all of its planned exploration efforts; Zion's ability to continue
as a going concern; Zion's ability to have its common stock
continue to be listed on the Nasdaq Capital Market; the timing and
completion of the 3-D seismic survey processing,
interpretation of the results and plans contingent thereon,
and operational risks in ongoing exploration efforts,
are forward-looking statements which are made pursuant to the
safe harbor provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities and Exchange
Act of 1934, as amended. These forward-looking statements are
based on assumptions that are subject to significant known and
unknown risks, uncertainties and other unpredictable factors, many
of which are described in Zion's periodic reports filed with the
SEC and are beyond Zion's control. These risks could cause Zion's
actual performance to differ materially from the results predicted
by these forward-looking statements. Zion can give no assurance
that the expectations reflected in these statements will prove to
be correct and assumes no responsibility to update these
statements.
Contact Info:
Andrew Summey
VP, Marketing and Investor Relations
Zion Oil & Gas, Inc. (NASDAQ: ZN)
12655 North Central Expressway, Suite 1000, Dallas, TX 75243
Telephone: 888-891-9466
Email: info@zionoil.com
www.zionoil.com
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SOURCE Zion Oil & Gas, Inc.