CAESAREA, ISRAEL, November 29 /CNW/ - Zion Oil & Gas, Inc. (Amex: ZN) of
Dallas, Texas and Caesarea, Israel published today on its website
(www.zionoil.com) a Summary of Zion's Permian Report filed with the Israeli
Petroleum Commissioner on October 29, 2007.
The Summary was published following receipt by the Company of a
substantial number of requests from people wanting to read the Permian Report.
A copy of the Report Summary as published on the company's website
appears below. The Summary is a slightly revised version of the Summary
chapter of the Permian Report as filed with the Petroleum Commissioner and is
redacted to delete confidential estimated reserves figures.
PERMIAN REPORT SUMMARY
Zion Oil & Gas, like other industry oil and gas exploration companies in
the Middle East, is now closely examining potential Permian reservoirs where
the largest gas reserves in the world have been found. The North Field of
Qatar has proven producing gas reserves estimated at 900 TCF (trillion cubic
feet). Across the straits, the North Field's extension (South Pars Field) in
Iran has producible reserves estimated at 280 TCF for a total of 1,180 TCF by
USGS estimates and over 1,400 TCF by some others. This super-giant field is
only one of over 20 Permian oil and gas fields discovered on the edges of the
Arabian Plate to date.
Recent analysis by Zion Oil & Gas has reinforced the previously made
observations of the striking similarity between the Permian Arqov formation in
Israel with the Permian Khuff formation in the Gulf region, where it is the
main reservoir for the gas noted above. The analysis revealed the identical
foraminifera (i.e. micro-fossils) and an even better depositional setting in
Northern Israel than in the Gulf region.
Zion's drilling of the Ma'anit #1 well in 2005 revealed a higher than
expected (i.e. shallower) structure at the Triassic level. The well drilled
almost 1,500 meters of Triassic, reaching into the Lower Triassic age with
continuous hydrocarbon 'shows' from the Middle Triassic downward. Throughout
the section, the Ma'anit #1 remained substantially high to every well drilled
in Central and Northern Israel. Post-drilling analysis indicated that the
well's total depth of 4,719 meters (15,482 feet) may be within a few hundred
meters of the Permian section of the Late Paleozoic making the Permian both
structurally prospective and reachable.
Zion's acreage position, located in north-western Israel, provides the
Company an excellent opportunity to test the Permian. Zion's Joseph License
and the Asher-Menashe License areas are positioned above major
paleo-topographic highs on the western edge of the Arabian Plate. The geology
of Zion's area appears to be analogous to that on the productive northeastern
margin of the peninsula (Kuwait, Iran, Saudi Arabia, Qatar and on to Oman).
Zion's favorable position permits the drilling of wells that can reach
the Permian with available drilling equipment and offers large areas of
enclosure for migration and entrapment of hydrocarbons. The license areas are
consistent with the full development of the petroleum system model for a
Permian prospect comprised of a hydrocarbon source, reservoir, seal, timing of
migration and the entrapment of hydrocarbons.
Zion is now confident that with the relatively shallow depths of the
Permian, it can drill through all three members of the Arqov formation and
most likely into the lower Sa'ad formation, the two formations which comprise
the Permian section in Northern Israel, and still retain sufficient porosity
to produce commercial hydrocarbons.
Zion believes that the proposed Ma'anit-Rehoboth #2 well Bottom Hole
Location, located approximately 800 meters (one-half mile) northeast of the
Ma'anit #1 well, is in an ideal position to test the Arqov formation which
appears to be equivalent to the prolific gas-condensate bearing member of the
Khuff formation in the Middle East. The total True Vertical Depth of the well
is projected at 5,400 meters (17,700 feet).
The major risks associated with drilling a well to the Permian are: (1)
reservoir quality, and (2) actual depth of the productive zone. As a
stand-alone prospect, the Permian is an excellent objective, however, in
addition, the exploration risk is minimized as the well will also serve as a
confirmation well in the Middle and Lower Triassic where the Ma'anit #1
encountered gas, condensate and oil shows. The proposed Ma'anit-Rehoboth #2
well will encounter these same reservoirs providing exploitation along with
exploration for potential Permian hydrocarbons.
Zion's technical staff recommends drilling the Ma'anit-Rehoboth #2 well
on the Ma'anit structure located on the Joseph License in order to test the
Permian of Northern Israel because of:
(1) the projected relatively shallow drill depths, and
(2) the enormous hydrocarbon potential of the Permian.
The proposed Ma'anit-Rehoboth #2 well will be ideally located on the
23,000 acre Ma'anit gravity high and the 7,400 acre fault block trap.
FORWARD LOOKING STATEMENTS : Statements in this press release and report
summary that are not historical fact, including statements regarding
exploration and drilling plans, future geophysical and geological data and
interpretation, drilling locations, timing and results of any wells,
anticipated attributes of geological strata to be drilled and other statements
regarding future operations and results, opportunities, business plans and
strategies 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 actual 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.
For further information:
For further information: Zion Oil & Gas, Inc., Dallas Ashley Chatman,