Zion Oil & Gas nears drilling phase in Northern Israel
Zion Oil & Gas announced that it has met and complied with two key conditions set by Israel's Petroleum Commissioner, enabling it to move toward drilling its next deep oil well, about 40 kilometers south of the Sea of Galilee, where the Jordan and Jezreel Valleys meet. Zion's oil well drilling contract is with S.C. Daflog S.R.L., the Israeli-registered entity of and related party of DAFORA, a Romanian company. "We plan to award the drill site construction contract as soon as our outside engineering firm finalizes our site plan to accommodate DAFORA's F-400 rig," said CEO Carrillo. "Assuming no further weather or regulatory delays, drill site construction should begin in November and take no longer than about 60 days to finish." In preparation to drill, Zion has spent almost $1M on necessary well drilling equipment, including well casing, and long lead time items. The company's final step before spudding the well is to submit the drill site plan along with its application to drill to the government for final approval.