Zion Oil’s Follow-on Public Offering Opens $25 Million Best Efforts Offering to Fund Zion Oil’s Multi-Well Drilling Program in Israel
Posted on May 15, 2008 – 5:04 pm | by vchris
DALLAS & CAESAREA, Israel–(BUSINESS WIRE)–Zion Oil & Gas, Inc. (Amex: ZN), announced today that the SEC declared effective the registration statement for Zion’s follow-on public offering of a minimum of 325,000 units up to a maximum of 2,500,000 units at $10.00 a unit. Each unit will consist of one share of Zion’s common stock and one warrant to purchase a share of Zion’s common stock at $7.00 per share.
Zion is raising funds in order to pursue a planned multi-well drilling program. Depending on actual amounts raised, Zion intends to carry out, to the extent possible, the following work program: drill Zion’s second well to the Triassic Formation (at a depth of 15,400 feet under Zion’s Joseph License) and / or to the Permian Formation (at a depth of 18,040 feet), drill a test well on Zion’s Asher-Menashe License to the Triassic Formation and, if appropriate, the Permian Formation and prepare for the drilling of an additional well on either its Joseph or Asher-Menashe License.
The offering is being placed through Brockington Securities, Inc. and other selected licensed broker-dealers, on a ‘best efforts’ basis. If the offering does not raise the minimum amount of $3,250,000 by August 12, 2008 (a date that may be extended for up to an additional 60 days), the offering will be terminated and any funds subscribed returned. If the minimum is timely subscribed, the offering will remain open until the earlier of a maximum raise of $25 million or November 10, 2008 (a date that may be extended for up to an additional 60 days), subject to termination on notice of two trading days.
Zion’s common stock trades on the American Stock Exchange under the symbol ZN. Zion has applied for the listing on the Amex of both the units and the warrants to be offered in its follow-on offering subject to the successful closing of the minimum offering. On listing, the ticker symbol for Zion’s units will be ZN.U and for the warrants ZN.WS.
More information about the offering, including a copy of the prospectus is available at www.zionoil.com. A copy of the prospectus can be: (1) downloaded from the website; (2) obtained on request by calling toll free 1-888-TX1-ZION (1-888-891-9466); (3) by e-mailing dallas@zionoil.com; or (4) requested from Brockington Securities by contacting 631-234-0303.
The securities are offered by prospectus only, and only within those States and other jurisdictions in which the securities may be sold, and this announcement is neither an offer to sell nor a solicitation of any offer to buy in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities of any such state or jurisdiction.
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Tel-Aviv and Haifa. It currently holds two petroleum exploration licenses, the Joseph and 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 relating to Zion’s expectations regarding the proposed public offering, the timing of any closing and the results thereof, Zion’s planned operations, potential results thereof and plans contingent thereon, 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 the Prospectus 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. Accordingly, Zion can give no assurance that the expectations reflected in these statements will prove to be correct. Zion assumes no responsibility to update these statements.
Contacts
Zion Oil & Gas, Inc.
Ashley Chatman, 214-221-4610
ashley@zionoil.com
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Tags: israel, Multi-Well Drilling, Program, Zion Oil
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