Project Profile
Area: 78,824 acres
Location: Mt. Carmel range, Northern Israel
Zion holds two Petroleum Exploration Licenses – the Asher-Menashe License along the Israeli coastal plain and on the Mt. Carmel range, between Caesarea and Haifa and the Joseph License located along the Israel coastal plain between Netanya on the south to the southern border of the Asher-Menashe License.
The 79,000 acre Asher-Menashe License had an initial three-year term that ran from June 10, 2007 through June 9, 2010, and has now been extended for an additional one-year period ending on June 9, 2011. At the option of the Israeli Petroleum Commissioner, the Asher- Menashe License may be extended for additional one-year periods up to 2014. Zion currently holds a 100% Working Interest and an 87.5% Net Revenue Interest in the License.
Under the terms of the Asher-Menashe License, as extended, Zion is required (i) to sign an agreement with an appropriate geological services provider to acquire at least 30 kilometers of 2-D seismic by August 1, 2010, (ii) to commence the seismic survey by October 1, 2010, (iii) to process and integrate the results of the new seismic survey with existing seismic lines and file a report with the Israeli Petroleum Commissioner by February 1, 2011, (iv) to identify a new drilling prospect in the Asher-Menashe License area by April 1, 2011 and (v) to sign a drilling contract to drill to the Permian geological layer by May 1, 2011.
On May 20, 2010, the company entered into an agreement with the Geophysical Institute of Israel (“GII”) to acquire approximately 32 kilometers of field seismic in the Asher-Menashe License area, thereby satisfying the first condition under the Company’s Asher-Menashe License. On June 20, 2010, GII commenced field acquisition of seismic data in the Company’s Asher-Menashe License area, thereby satisfying the second condition under the Company’s Asher-Menashe License.
Operator:
Zion Oil & Gas: Operator with 100% interest
Contractors:
Lapidoth: Drilling contract