Zion Oil & Gas, Inc. reported the filing of a registration statement with the SEC, for a follow-on public offering of a minimum of 325,000 units, up to a maximum of 2,500,000 units, at $10.00 per unit. Each unit will consist of one share of Zion's common stock and one warrant to purchase a share of Zion's common stock at $7.00 per share.
Zion is raising funds in order to pursue its planned multi-well drilling program. Depending on actual amounts raised, Zion intends to carry out, to the extent possible, the following work program: drill Zion's second well to the Triassic Formation (at a depth of 15,400 feet under Zion's Joseph License) and/or to the Permian Formation (at a depth of 18,040 feet), drill a test well on Zion's Asher-Menashe License to the Triassic Formation and, if appropriate, the Permian Formation and prepare for the drilling of an additional well on either its Joseph or Asher-Menashe License.
The offering will be placed through Network 1 Financial Securities, Inc. and other selected licensed broker-dealers, on a 'best efforts' basis. If the offering does not raise the minimum amount of $3,250,000 by 90 days after the registration statement is declared effective by the SEC, (a date that may be extended for up to an additional 60 days), the offering will be terminated and any funds subscribed returned. If the minimum is timely subscribed, the offering will remain open until the earlier of a maximum raise of $25 million or 180 days after being declared effective by the SEC, (a date that may be extended for up to an additional 60 days), subject to termination on notice of two trading days.
Zion's common stock trades on the American Stock Exchange under the symbol ZN. Zion has applied for the listing on the Amex of both the units and the warrants to be offered in its follow-on offering subject to its registration statement being declared effective by the SEC and the successful closing of the minimum offering.
A registration statement relating to the securities described above has been filed with the Securities & Exchange Commission but has not yet been declared effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The information in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or country in which such offer, solicitation or sale would be unlawful prior to the registration, qualification or exemption under the securities laws of any such state or country.
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