Zion Oil and Gas, Inc. · OTC:ZNOG
Zion Oil and Gas — Shareholder Meeting (June 2011)
38 slides from Zion Oil and Gas's shareholder meeting presentation, June 2011
Slide 1: Annual Stockholders Meeting Operations Report
Annual Stockholders Meeting Operations Report June 2011 Bill Ottaviani President & Chief Operating Officer
Slide 2: Since We Met Last Year…
Since We Met Last Year… Drilled the Ma’anit-Joseph #3 Well Acquired over 30 miles of new seismic data – Granted new License in Jordan Valley Area – Applied for new Exploration Permit in Zebulun Area – Applied for License Extension in Asher-Menashe Area Applied for new License Area in the Dead
Slide 3: Significant Increase in Potential Exclusive Exploratory Rights
Significant Increase in Potential Exclusive Exploratory Rights June 2010 Position June 2011 Position 330,000+ acres 530,000+ acres* * Maximum Position 3 Possible
Slide 4: Zion's Potential Exclusive Exploration Rights in Israel
Zion’s Potential Exclusive Exploration Rights in Israel • How large is Zion’s 530,000+ acres of potential exclusive exploration acreage? – Almost 2.5 times the size of the city of Dallas – More than 3,800 times the size of the Cowboy Stadium complex – More than 400,000 football fields (including end
Slide 5: Current Development Activity
Current Development Activity
Slide 6: Ma'anit-Joseph #3 Well
Ma’anit-Joseph #3 Well • Joseph License Area • Spud in August 2010 • Total Vertical Depth of 19,300+ feet reached in June 2011 • Deepest well drilled by Zion; one of the deepest ever drilled in Israel • Only well to penetrate Permian-aged rocks in Northern Israel 6
Slide 7: How long is 19,300 feet?
How long is 19,300 feet? Stacked on top of each other, these 11 structures would still be less than 2,000 feet “shorter” than the 2,717 ft. drill length of the Ma’anit-Joseph #3 well! 7
Slide 8: MJ-3 Philosophy: Best Overall Value for Zion
MJ-3 Philosophy: Best Overall Value for Zion • Value = Cost + Quality + Reliability • Developed pre-spud bid packages for major equipment and service providers – (8) equipment & service categories – (39) companies targeted – (47) bid packages issued – (38) bids received 8
Slide 9: MJ-3: A Multinational Project!
MJ-3: A Multinational Project! SCOTLAND: HOLLAND: GERMANY: ITALY: ENGLAND: Directional Perforation Directional Cementing, Casing and Survey Equipment Drilling Logging, Insurance Testing, Bits Services CHINA: Casing USA: Casing, Tubing, and Logging TURKEY: Rig crew, ISRAEL: Technical Cement, Logistic
Slide 10: Continuous Improvement
Continuous Improvement • Implemented a new multinational bidding process • Enhanced Mud Engineering and Cement Services operations • Assigned dedicated staff to critical areas of permitting and logistics • Expanded wellsite geologic supervision • Implemented robust site specific safety and security
Slide 11: MJ-3: Overcoming Unique Challenges & Considerations
MJ-3: Overcoming Unique Challenges & Considerations • High density population area => sound mitigation required • Excess cavings of rock formation => modifications to well design, mud system + well sidetracks • Regional Middle East turmoil => schedule impact • Increasing demand, reduced supply of oi
Slide 12: Future Development Opportunities
Future Development Opportunities
Slide 13: Building Our Development Portfolio
Building Our Development Portfolio • Acquired 30+ miles of new 2D seismic data • Geophysical Institute of Israel • Asher-Menashe License and Issachar-Zebulun Permit Areas • Enhanced geologic models 13
Slide 14: Seismic Survey Results
Seismic Survey Results Asher-Menashe License Issachar-Zebulun Permit • Elijah-3 Well • Large 165,000 acre tract • Temporarily Suspended • Expired February 2011 • Volcanics - thicker and • Exploration focus in Jordan deeper than expected Valley area • Evaluating potential to drill • Requested and Gra
Slide 15: Proposed Asher-Joseph Permit Area
Proposed Asher-Joseph Permit Area • Approximately 80,000 acres • Builds on Zion’s dominant exploratory onshore position in Northern Israel • Several key exploratory regions within Permit boundary • Requires additional seismic data 15
Slide 16: Proposed Dead Sea License Area
Proposed Dead Sea License Area • Approximately 75,000 acres • Expands Zion’s exploration footprint into known area of oil production • Shallower targets than Elijah and Ma’anit wells (~11,500 feet) • License grant requires drilling commitment 16
Slide 17: Behind the Scenes: Preparing to Drill MJ-3
Behind the Scenes: Preparing to Drill MJ-3
Slide 18: In the Beginning…
In the Beginning... 8 ZIon 1 OIL & Gas
Slide 19: An Onion Field No More!
An Onion Field No More! 19
Slide 20: A New Foundation
A New Foundation 20
Slide 21: Leveling the Playing Field
Leveling the Playing Field 21
Slide 22: First Pipe in the Hole
First Pipe in the Hole 22 ZIon OIL & GAS
Slide 23: Thumb's Up!
Thumb’s Up! 23
Slide 24: Preparing the Pad
Preparing the Pad accom NDT 24 Zion OIL & GAS
Slide 25: Concrete Jungle
Concrete J ungle 25 ZION OIL & GAS
Slide 26: Digging the Mud Pit
Digging the Mud Pit 26
Slide 27: Mud Pit Lining
Mud Pit Lining 27
Slide 28: Mobilizing the Drill Rig
Mobilizing the Drill Rig 28
Slide 29: Massive Substructure
Massive Substructure Zion 29 OIL & GaAs
Slide 30: Starting to Take Shape
Starting to Take Shape 30
Slide 31: Super-sized Equipment
Super-sized Equipment 31
Slide 32: The Great Wall: Sound Protection
The Great Wall: Sound Protection 32
Slide 33: Prepare to Raise the Mast
Prepare to Raise the Mast ZIon 33 OIL & Gas
Slide 34: Taking on Supplies
Taking on Supplies 34
Slide 35: Final Touches
Final Touches 35
Slide 36: Safety First!
Safety First! ni ZIon 36 OIL & Gas
Slide 37: Drilling Ahead!
Drilling Ahead! 37 ZIon OIL & GAS
Slide 38: Thank You
“THANK YOU” HION OIL & GAS Dy