History
Zion Oil & Gas spent years chasing Israeli exploration licenses and a drilling rig before leaving Nasdaq for the OTCQX in 2020.
2011-2013: Licenses, deadlines and a rig idea
Zion Oil & Gas was an onshore Israel explorer, and its early record is largely a story of licenses and the work deadlines attached to them. In May 2011 Israel's Petroleum Commissioner granted it the Jordan Valley license, about 226 square kilometers just south of the Sea of Galilee, requiring a well of about 5,000 meters by April 2013. Over the following months the Asher-Menashe license was extended to June 2012, with conditions about the Elijah #3 well, and the Joseph license was extended to October 2012 and then to April 2013 because the seismic contractor, GII, had crews in Africa.
In August 2011 its auditor, Somekh Chaikin, said it must resign after the September 2011 quarterly report because of a Texas accountancy board order about auditing Texas-based companies without registration. The filing reported no disagreements, and Zion began looking for a Texas-registered replacement.
To raise money, Zion cut the exercise price of three warrant series to $1.75 in June 2012, from $3.50, $7.00 and $4.00. Warrants are rights to buy new shares, so exercising them dilutes existing holders. It repeated the cut for the two remaining series in October 2012. A day after the first cut, it signed a non-binding agreement with Lapidoth Israel Oil Prospectors to form a 50/50 drilling company to buy a rig costing up to $15 million, dependent on Zion raising at least $10 million. Shares on issue rose from 24.9 million at the end of 2010 to 34.0 million by the end of 2013.
In July 2013 Asher-Menashe was extended to June 2014, on condition that the rig be moved to Elijah #3 and a suspected oil zone be tested; a negative result meant plugging the well and returning the license. In December 2013 Zion won the Megiddo-Jezreel license, about 98,842 acres, with a well of about 4,000 meters due by December 2015.
2014-2016: Chasing a rig for Megiddo-Jezreel
The record for 2014 is quiet. In February 2015 Nasdaq cleared Zion's securities to begin trading, and Zion signed a non-final agreement with Viking Services BV for a rig and crew to drill two wells on Megiddo-Jezreel, with the first expected in the second half of 2015. By June the start had slipped to late 2015 or early 2016, and Victor Carrillo was named CEO.
In October 2015 Zion opened its first disclosed debt-raising, a 10% Convertible Senior Note under its existing shelf registration. In January 2016 it extended the related bond rights offering to March 31, after shareholders holding through brokers complained of late materials. The same release said Israel's Northern District Committee had unanimously approved the drilling request and environmental assessment, with drilling planned for March-April 2016.
That timetable also slipped. In June 2016 Zion replaced the 10% offering with a 12% Convertible Senior Bond (minimum $2.5 million, maximum $12 million, due 2028) sold through Network 1 Financial Securities, and announced a non-binding plan with an unnamed US oilfield services company for a 50/50 rig subsidiary. In October 2016 it instead signed a drilling agreement with S.C. Daflog, the Israeli branch of Romanian driller DAFORA, for its F-400 rig, at a day rate of $23,340, for the planned 15,000 foot Megiddo-Jezreel #1 well. An Israel Land Authority agreement covered a 3.18-acre drill site. In November the Commissioner extended the license to December 2, 2017 and the drilling start deadline to June 30, 2017, and a site construction contract went to Y. Bazelet & Aggregatim. Drilling still depended on permits and more capital. The amount raised by the bond is not disclosed.
2017-2019: Heavy issuance and Nasdaq warnings
The records for 2017 and 2018 contain no major beats, though shares on issue climbed from 42.6 million at the end of 2016 to 66.4 million at the end of 2018, and then 124.0 million in 2019. The beats do not explain these increases. The auditor Malone Bailey resigned in October 2018 and RBSM LLP was engaged.
In January 2019 Nasdaq warned that the stock had closed below the $1.00 minimum bid for 30 straight trading days. In June a second notice said its market value was below the $50 million minimum for the Global Market. In July Zion moved to the Nasdaq Capital Market, gaining until January 6, 2020 to restore the bid price, and said it would do a reverse split if necessary.
2020: A rig of its own and a move to OTCQX
In January 2020 Nasdaq staff decided to delist the stock and warrants. Zion requested a hearing, which kept them trading, and said it would present exploration plans, including sourcing a rig, to avoid a reverse split.
In March 2020 Zion bought a rig, drill pipe and equipment from Central European Drilling kft for $5.6 million in cash: a $250,000 deposit, $4.35 million to the seller and $1 million held in escrow until July 10, 2020 against operating deficiencies. The rig was stored in Romania and had to be imported into Israel, and Zion said Coronavirus restrictions made timing impossible to estimate.
In August 2020 Zion chose to leave Nasdaq voluntarily and move to the OTCQX rather than reverse split, saying Covid-19 shutdowns had delayed operations, including drilling plans. In September it extended several warrant series by two years. Robert Dunn signed as CEO from August 2020.
As of the latest record, November 17, 2025, Zion remained an Israel explorer with no operating revenue and going-concern doubt noted. Shares on issue had passed one billion, though the beats do not explain the growth after 2019. It extended its ZNWAA warrants to January 31, 2031. Whether the rig reached Israel, the escrow outcome and the start of drilling at Megiddo-Jezreel #1 are not in the records seen.
Written from the 28 story beats below (2011 to 27 Oct 2020), which come from the company's own announcements and filings.