Project Profile
Area: 83,000 acres
Location: Israeli coastal plain
The 83,000 acre Joseph License had an initial three-year term that ran from October 10, 2007 through October 10, 2010, and has now been extended for an additional one-year period ending October 10, 2011. At the option of the Israeli Petroleum Commissioner, the Joseph License may be extended for additional one-year periods up to 2014. Zion’s Working and Net Revenue Interests in the Joseph License are the same as its interests in the Asher-Menashe License.
Under the terms of the Joseph License, as extended, Zion is required (i) to submit to the Israeli Petroleum Commissioner a report as to the production testing of Zion’s Ma’anit-Rehoboth #2 well by October 1, 2010 and (ii) to start drilling, by January 1, 2011, a well to the Permian geological layer.
The company is in the process of preparing for submission to the Israeli Petroleum Commissioner the production reports relating to the Ma’anit-Rehoboth #2 well and has previously disclosed its plans to drill the Ma’anit-Joseph #3 well to test the Permian geological formation, both of which are located within the Joseph License area. The company anticipates commencing drilling operations in August 2010 for the Ma’anit-Joseph #3 well.
In the event of a discovery, Zion will be entitled to convert the relevant portions of its licenses to 30-year production leases, extendable to 50 years.
Operator:
Operator with 100% interest: Zion O&G