Zion Oil & Gas announced that on June 24, 2009 it completed its previously announced rights offering. The outcome of the rights offering, as of the close of business on June 24, 2009, indicates that (including over-subscription) the rights offering has been over-subscribed.
Holders of record of Zion's common stock, as of the close of business on May 4, 2009, were given non-transferable subscription rights to purchase up to 4.2 million shares of common stock at a subscription price of $5.00 per share.
The total available subscription of 4.2 million shares, for gross proceeds of $21.0 million, will be accepted (including almost all of the over-subscription) and refunds for any unfilled over-subscriptions will be refunded as soon as possible.
Zion's Chief Executive Officer, Richard Rinberg, said today, "I am pleased to announce the successful conclusion of our rights offering. The $21.0 Million proceeds will provide us with financial and operating flexibility and will enable us to significantly further our exploration and drilling program."
Zion is currently drilling its Ma'anit-Rehoboth #2 well to the Triassic Formation (down to a depth of 15,400 feet) and then, it is planned, to the Permian Formation (down to a depth below 18,000 feet). Today, the drilling has reached a depth of approximately 15,750 feet.
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