DALLAS and CAESAREA, Israel, July 26, 2011 (GLOBE NEWSWIRE) -- Zion Oil & Gas, Inc. (Nasdaq:ZN) announced today that on July 25, 2011 it completed its previously announced rights offering. The preliminary outcome of the rights offering, as of the close of business on July 25, 2011, indicates that subscriptions for approximately 3.64 million units, for gross proceeds of approximately $18.2 million, have been received (including over-subscriptions). All shareholders that requested over-subscription shares will be awarded their full over-subscription request.
Zion's Chief Executive Officer, Richard Rinberg, said today, "I am pleased that the response to the stock rights offering has been so positive and to announce the successful conclusion of our rights offering. The proceeds from this offering provide us with financial and operating flexibility and enable us to further our exploration and multi-well drilling program in Israel."
In the rights offering, described in the prospectus contained in the registration statement, shareholders of record as of June 15, 2011 received non-transferable subscription rights to purchase Units of Zion's securities. Each shareholder of record on June 15, 2011, received .25 of a subscription right for each share of common stock owned on June 15, 2011, equivalent to one (1) subscription right for every four (4) shares of common stock owned on that date.
Each whole subscription right entitled the holder to purchase one Unit of Zion's securities at a purchase price of $5.00 per Unit. Each Unit consisted of one (1) share of Zion's common stock and warrants to purchase two (2) additional shares of Zion's common stock at an exercise price of $3.50 per share. The warrants will be exercisable for a one-year period beginning on July 26, 2011.
Shareholders who exercised their rights in full were also entitled to purchase additional shares pursuant to an over-subscription right to the extent holders did not fully subscribe for their basic subscription rights.
For updates on Zion's activities, please visit Zion's website "www.zionoil.com".
Zion's common stock trades on the NASDAQ Global Market under the symbol "ZN" and Zion's warrants trade under the symbol "ZNWAW and ZNWAZ".
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv. It currently holds three petroleum exploration licenses, the Joseph License (on approximately 83,272 acres) and the Asher-Menashe License (on approximately 78,824 acres) between Netanya, in the south, and Haifa, in the north and the Jordan Valley License (on approximately 55,845 acres), just south of the Sea of Galilee. The total license area amounts to approximately 217,941 acres.
Zion's homepage may be found at: www.zionoil.com
The Zion Oil & Gas, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6850