DALLAS and CAESAREA, Israel, July 29, 2011 (GLOBE NEWSWIRE) -- Zion Oil & Gas, Inc. (Nasdaq:ZN) announced today the final results of the Company's recent rights offering that was completed on July 25, 2011. In total, subscriptions for approximately 4.9 million units, for gross proceeds of approximately $24.5 million, were 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 very pleased with the final outcome of our stock rights offering. We received subscriptions for almost 80% of the offered rights and now have the financial resources to significantly further our exploration and multi-well drilling program in Israel.
I remain optimistic about the possibility of recovering hydrocarbons on our license and permit areas, onshore Israel, especially due to the U.S. Geological Survey (USGS) report, published in April 2010, containing their assessment that there may be 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of recoverable gas in the Levant Basin, as all of Zion's exploration rights fall within the area of the Levant Basin."
In the rights offering, as described in the prospectus and registration statement filed in connection therewith, shareholders of record as of the close of business on June 15, 2011 received non-transferable subscription rights to purchase Units of Zion's securities. Each shareholder of record as of the close of business on June 15, 2011, received .25 of a subscription right for each share of common stock owned as of the close of business 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.
Shareholders who exercised their rights in full were also entitled to purchase additional Units, pursuant to an over-subscription right to the extent holders did not fully subscribe for their basic subscription rights.
Additional details relating to the anticipated delivery dates of the certificates representing the shares and warrants, as well as the commencement date for the trading of the newly issued warrants, will be announced shortly.
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 previously issued 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.
The Zion Oil & Gas, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6850
FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, the formation of a drilling subsidiary and the negotiation and execution of agreements related thereto, drilling efforts and potential results thereof and plans contingent thereon, 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 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.
Zion's homepage may be found at: www.zionoil.com