March 2020 - 10K is out | Christians4zionoil

March 2020 - 10K is out Mar 29, 2020 13:19:56 GMT -5

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Post by Ethan / JRyan on Mar 29, 2020 13:19:56 GMT -5

Historically, Israel (particularly onshore) has not been an area of interest for international integrated or large or mid-size independent oil and gas exploration companies for various reasons, one of which is likely geopolitical.

I have been saying this all along...

We are involved in an ongoing government investigation by the United States Securities and Exchange Commission, the results of which may have a material adverse effect on our financial condition and business.

On June 21, 2018, the Fort Worth Regional Office of the SEC informed Zion that it is conducting an investigation and requested that we voluntarily provide certain information and documents in connection with its investigation. We are cooperating fully with the SEC in connection with its investigation. Investigations of this nature are inherently uncertain and their results cannot be predicted with certainty. Regardless of the outcome, the SEC investigation can have an adverse impact on us because of legal costs, diversion of management resources, and other factors. Determining reserves for this investigation is a fact-intensive process that requires significant judgment. The investigation could also result in reputational harm to Zion and may have a material adverse effect on Zion’s current and future business and exploratory activities and its ability to raise capital to continue our oil and gas exploratory activities.

The recent outbreak of Covid-19 or the coronavirus may interrupt or delay our exploration activities in the MJL and could affect our capital raising efforts on which we rely to continue our exploration program and maintain our operations, thereby adversely affecting our business.

As disclosed, we have purchased a drilling rig, drill pipe, related equipment and excess inventory to further explore for hydrocarbons in our MJL. We plan to have the rig imported into Israel from Romania where the rig is currently stored. We intend to commence the shipping after the visas and other approvals for the operating crew have been obtained.

We cannot predict the impact, if any, that the recent outbreak of the coronavirus will have on the timing of the importation of the rig, the setup of the rig at the well site and the testing. In an effort to combat the coronavirus, the Israeli authorities have mandated severe restrictions on the day to day operations of business, including the required 14 day quarantine of any persons entering Israel as well as rules relating to the conduct of business. At the present time, we cannot predict the impact, if any, of these regulations on our planned testing time schedule.

In addition, the coronavirus is adversely affecting the global economy and resulting in, amongst other things, significant unemployment and business shutdown, leading to potentially a protracted business recession. Any such development may adversely affect our capital raising efforts, on which we rely to continue our exploration program and maintain operations.

The extent to which the coronavirus impacts our operations, specifically our capital raising efforts, as well as our ability to continue our exploratory efforts, will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others.

Nothing new here really, would have liked an update but I understand why not..

We, and some of our current and former officers and directors, have been named as parties to various lawsuits arising out of, or related to, the previously disclosed SEC investigation and those lawsuits could adversely affect us, require significant management time and attention, result in significant legal expenses or damages, and cause our business, financial condition, results of operations, and cash flows to suffer.

A number of shareholder lawsuits, both class action and derivative, have been filed against us and certain of our current and former officers and directors, as detailed more fully in Item 3, Legal Proceedings. The class action complaint asserts claims for alleged violations of the federal securities laws and seeks unspecified money damages and other relief on behalf of a putative class of persons who purchased or otherwise acquired our common stock. On November 26, 2019, the judge in the consolidated derivative lawsuit in federal district court in Delaware granted our Motion to Dismiss the derivative lawsuit, and that dismissal became final on December 26, 2019. Regardless of the outcome, these lawsuits, and any other litigation that may be brought against us or our current or former officers and directors, could be time-consuming, result in significant expense, and divert the attention and resources of our management and other key employees. An unfavorable outcome in any of these matters could exceed coverage provided under potentially applicable insurance policies, which is limited. Any such unfavorable outcome could have a material adverse effect on our business, financial condition, results of operations, and cash flows. Further, we could be required to pay damages or additional penalties or have other remedies imposed against us, or our current or former directors or officers, which could harm our reputation, business, financial condition, results of operations, or cash flows.

I think both have been dismissed??? Here it is..

On March 4, 2020, the Court granted Defendants’ Motion and dismissed all claims granting Plaintiffs leave to amend. Lead Plaintiffs must file an amended complaint by April 1, 2020.

Our ongoing work program is expensive. We believe that our current cash resources are sufficient to allow us to undertake exploratory activities in our current license area through December 2020.

The Plaintiffs’ deadline to appeal the Order was on December 26, 2019, and Plaintiffs did not appeal. Judge Andrews issued an eighteen-page Memorandum Opinion holding that Plaintiffs had not sufficiently pleaded the futility of making demand on Zion’s Board of Directors prior to filing suit, noting “I do not find that the Plaintiffs have pleaded with particularity any facts that suggest the Director Defendants acted in bad faith or otherwise consciously disregarded their oversight responsibilities in regard to Zion’s prospects for discovery and extraction of oil.”

Good news here, I guess the noise needs to back off this one, but I doubt they will. We are good for a while with what we have!

We are authorized under our amended and restated certificate of incorporation to issue 200,000,000 shares of common stock. As of March 25, 2020, there were 161,216,944 shares of our common stock issued and outstanding.

Now we know, only 40 million shares left under the current incorporation....

In March 2020, we purchased an onshore oil and gas drilling rig, drill pipe, related equipment and excess inventory for a purchase price of $5.6 million, of which $1 million is in escrow pending testing by us of the rig. We plan to have the rig imported into Israel and set up at the MJ#1 well site during the second quarter 2020. However, the expected time frame is subject to Israeli regulations intended to combat the coronavirus outbreak.

Zion received a multi-year license extension through December 2, 2020. Zion made its annual license fee payment on November 30, 2019, thereby confirming the Company’s commitment to further exploration in the license area.

I have some but haven't looked at them in a long time so I do not count them...

A summary of what Zion believes to be some key questions left to be answered are:

1. Is the missing shallow Senonian age source rock a result of regional erosion, or is it missing because of a fault that cut the well-bore and could be reasonably expected to be encountered in the vicinity of the MJ#1 drill site? Zion believes this is an important question to answer because if the Senonian source rocks do exist in this area, the high temperatures encountered are sufficient to mature these source rocks and generate oil.

2. Do the unusually high shallow subsurface temperatures extend regionally beyond the MJ#1 well, which could allow for the generation of hydrocarbons in the Senonian age source rock within our license area?

3. As a consequence of seismic remapping, where does the MJ#1 well lie relative to the potential traps at the Jurassic and Triassic levels and was the well location too low on the structures and deeper than the potential hydrocarbons within those traps?

Zion has completed all of the land compensation for the 3-D survey in November 2019. All land parcels and the kibbutz have approved the completion of the geophysical survey. Subsequently, the Contractor demobilized the equipment from Israel to Europe. All field data from acquisition was delivered to Dallas, Texas and the Ministry of Energy in Israel. Additionally, the final acquisition reports from the Contractor and Zion were delivered to the Ministry of Energy in December per the guidelines enacted in July 2019.

Agile Seismic Processing Services (“ASPS”) is continuing to process the data set with state-of-the-art technologies allowing for comprehensive imaging at depth. Zion’s previous 2-D data sets have been added into the 3-D volume allowing for further verification. The estimated completion timeframe for the final data set is projected to be in April 2020. Our questions from the MJ#1 well are being correlated with the 3-D data set to provide potential solutions on a go forward basis.

Now we know the timeline..

(iv) On March 13, 2020, the Nasdaq Hearing Panel granted the request of Zion Oil & Gas, Inc. for continued listing on the Nasdaq Stock Market LLC, subject to the Company demonstrating compliance with the minimum $1.00 per bid price requirement, as set forth in Nasdaq Listing Rule 5550(a)(2), on or before June 26, 2020. In order to evidence compliance with the Rule, the Company must evidence a closing bid price of at least $1.00 per share for a minimum of ten, through generally not more than 20, consecutive business days. The Company is diligently working to evidence compliance with the Rule; however, there can be no assurance that it will be able to do so.

Well that is good for now I guess.....

(v) Approximately $8,017,000 was collected through the Company’s DSPP program during the period January 1, 2020 through March 17, 2020. This amount excludes cash received in early January which was shown as a receivable at December 31, 2019.

Seems we know how the drilling rig was purchased now, but we already knew that...

Well nothing jumps out at me but in the end, we 'own' our rig now, so that one is complete. I know it burns the noise to no end but it is done, it is Zion Oil's rig now and they can shut up about that one. We now have ASSETS!

Ethan / JRyan: Remember, Life is but a short time. Eternity is what actually counts. These are strange days for all, especially the nation of Israel. The well is but a blip in the big picture. Pray the Ancient of Days spares us in the coming weeks... Aug 9, 2024 14:06:42 GMT -5

Christians4zionoil

March 2020 - 10K is out

Post by Ethan / JRyan on Mar 29, 2020 12:22:01 GMT -5

Post by Ethan / JRyan on Mar 29, 2020 13:19:56 GMT -5

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