Zion Oil and Fuel Inc. (ZNOG) has acquired clearance from authorities in Israel to proceed with a piece plan to re-enter the Megiddo-Jezreel 1 nicely (MJ01), the USA firm mentioned, over 5 years after declaring the nicely not commercially viable.
A authorities committee composed of representatives from the ministries of vitality, water and setting in addition to native officers visited the rig website and subsequently accepted the plan, the corporate based mostly in Dallas, Texas however working within the Center Jap nation mentioned in a information launch.
“This acceptance permits us to signal agreements and safe mobilization dates with our service suppliers to start and full the undertaking”, chief government Robert Dunn mentioned in a press release.
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Late 2018 Zion introduced that outcomes from the testing program of the nicely’s major zones inside Jurassic- and Cretaceous-age formations confirmed the nicely was a no-pay zone.
Nevertheless the outcomes “could help additional analysis and potential additional exploration efforts inside our License space”, then-chief government Dustin Guinn mentioned in a press launch November 20, 2018.
Zion, which has tied its mission to the gospel, mentioned the approval course of for the re-entry plan had been derailed by the battle between Israel and Hamas. The appliance for the Megiddo Valleys 434 license, which covers MJ01, had additionally been delayed by the political disaster in Israel that noticed the nation undergo three parliamentary elections since 2020, in line with Zion.
“Zion will deploy cutting-edge applied sciences and revolutionary stimulation methods within the MJ-01 nicely, aiming to unlock hydrocarbon flows in each beforehand and newly recognized zones of curiosity”, the re-entry approval announcement acknowledged.
Zion introduced September 14, 2023, the receipt of Israeli approval for the license encompassing about 75,000 acres. The license covers the identical space as New Megiddo License 428, which expired February 1, 2023, after a number of extensions since an preliminary six-month time period awarded December 2020.
The brand new license lasts three years until September 2026 “with the choice of 4 1-year extensions for a complete of seven full years till September 13, 2030”, Zion mentioned. That is Zion’s seventh license all through its 23 years as a firm.
“This isn’t an extension however a brand new license spanning seven years, offering ample time for additional exploration and growth”, Jeffrey Moskowitz, Zion vice-president and managing director for Israel, mentioned in a press launch Could 18, 2023.
Earlier than the granting of the license, Zion had raised a “substantial doubt” about its functionality to proceed, citing “a historical past of working losses and unfavorable money flows from operations”.
“We presently don’t have any income producing operations”, it declared in its quarterly disclosure with the USA Securities and Change Fee August 10, 2023. Zion mentioned within the submitting its money stability would solely be sufficient to see the corporate by means of August 2023 when it comes to funding operations.
On November 9, 2023, it launched its newest monetary outcomes exhibiting it had a internet lack of $1.7 million for the third quarter of 2023. Working capital additional fell to $108,000.
Saying the approval of the work plan OTCQX-listed Zion additionally mentioned it has prolonged a funding elevate that was to run out February 29, 2024. “Every $250 funding per unit will proceed to supply buyers with $250 value of ZNOG inventory on the buying and selling day’s high-low common and fifty 25-cent Warrants, with the train interval now prolonged from April 15, 2024, to April 14, 2025”, it mentioned.
To contact the writer, e mail jov.onsat@rigzone.com
