February 15th, 2008 11:41 EST
Dallas, TX and Caesarea, Israel-- Zion Oil & Gas, Inc. (AMEX: ZN - News), announced today the filing of a registration statement with the SEC, for a follow-on public offering of a minimum of 325,000 units, up to a maximum of 2,500,000 units, at $10.00 per 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 its 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 will be placed through Network 1 Financial 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 90 days after the registration statement is declared effective by the SEC, (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 180 days after being declared effective by the SEC, (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 its registration statement being declared effective by the SEC and the successful closing of the minimum offering.
A registration statement relating to the securities described above has been filed with the Securities & Exchange Commission but has not yet been declared effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The information in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or country in which such offer, solicitation or sale would be unlawful prior to the registration, qualification or exemption under the securities laws of any such state or country.
The offering will be made only by means of a prospectus. When available, copies of the preliminary prospectus relating to the offering can be obtained by contacting Ashley Chatman at Zion Oil & Gas, Inc., 6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone +214-221-4610; email: email@example.com. A copy of the preliminary prospectus can be downloaded from the Zion Oil website at www.zionoil.com. A copy can also be obtained from Network 1 Financial Securities by contacting 800-886-7007.
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 regarding the future effectiveness of Zion`s registration statement, matters regarding the offering and possible closings thereof dependent on the declaration of effectiveness, Zion`s planned operations, potential results thereof and plans contingent thereon, including selection of potential drilling targets and locations, are forward- looking statements as defined in the "Safe Harbor" provisions 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.
Zion`s homepage may be found at: www.zionoil.com
Source: Zion Oil & Gas, Inc.