Zion Oil & Gas, Inc. (Nasdaq: ZN) announces they (i) entered into a sale and Sale Agreement on March 12, 2020. For a drill rig, drill pipe, and related equipment for $5.6 million in cash, and (ii) closed that purchase on March 12, 2020, an equivalent day, by Bill of Sale from the vendor to Zion.
On March 13, 2020, Zion paid the vendor $4.6 million in cash and remitted. “This may be a new era for Zion and a positive breakthrough for our 2020 exploration plans,” Zion’s COO, Robert Dunn said. “With our asset-based within the State of Israel, our planning and adaptability will become more robust.”
“We believe this is often the proper time for this to happen,” stated Zion’s President, Bill Avery. “Having cash budgeted and available for the acquisition of this rig shows. The strong support as well as of our shareholders and evidence of God’s faithfulness.”
The rig may be a 1600 horsepower AC Top Drive equipped rig. With a twin 1600 horsepower as well as a mud pump system with a depth capability of 20,000 ft. The rig is going to be equipped as well as with almost 15,000 ft of heavy 5” drill pipe alongside associated well control equipment and inventory.
Actual rig pictured above. Currently stacked awaiting shipment to Israel
The rig underwent a full CAT III & IV certification in late 2017, reassuring as well as the standard of the rig and ancillary equipment, and it’s drilled two wells since certification.
The State of Israel has currently imposed travel restrictions as well as concerning the Coronavirus outbreak. Including a requirement that a person arriving in Israel. Including the operating crew for the rig, will currently be got to undergo a two-week quarantine.
In addition, the ports of entry into Israel through. Which the rig will get to enter could also be undergoing work disruptions on account of the virus outbreak. Accordingly, it’s impossible at this time to accurately estimate the time or resources which will be necessary to import the drill rig onto the well site or any delay arising as a consequence of the outbreak.