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Last updated on April 18, 2014 at 1:21 EDT

Zion Oil & Gas Announces Results of Its Seismic Acquisition Program and Selection of Zion’s First Drill Site in Its Asher-Menashe License Area

July 1, 2008

Zion Oil & Gas, Inc. (AMEX: ZN) of Dallas, Texas and Caesarea, Israel, announced that the company’s geological team recently completed the processing of seven seismic lines (totaling over fifty two kilometers) acquired last winter and also the reprocessing of an additional ten seismic lines (of over one hundred and ten kilometers) in two prospective areas.

The interpretation of the seismic data, coupled with geologic, gravity and magnetic data has resulted in the development of the first drillable prospect on Zion’s Asher-Menashe license. A site for the new well, named the Elijah #3, has been selected on a ten thousand acre structure, comprising both Triassic and Permian targets.

The selected well site is approximately 2.5 miles southeast of the abandoned Asher-Atlit #1 well. The Asher-Atlit #1 was drilled to 6,531 meters (21,428 feet) by Energy Exploration Inc. in the early 1980s. Before Energy Exploration abandoned the Asher-Atlit #1, due to drilling problems, 2,000 feet of a Triassic reef were encountered and hydrocarbon shows were noted.

Zion is obligated, by the terms of its Asher-Menashe License, to commence the drilling of a well no later than July 2009 and like the Ma’anit-Rehoboth #2 well on Zion’s Joseph License (scheduled to commence in September 2008), most of the long lead items for the well have been sourced, purchased and delivered and are now in secure storage, in Israel.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya on the south and Haifa on the north covering a total of approximately 162,000 acres.

FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s geological and economic interpretations and analyses and the possible implications thereof, its operations and planned operations, are forward-looking statements as defined in the “Safe Harbor” provision of the Private Securities Litigation Reform Act of 1995. 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.