锡安石油和天然气 2025年季度报告

Consolidated Condensed Balance Sheets–March 31, 2025 and December 31, 2024Consolidated Condensed Statements of Operations for the three months ended March 31, 2025 and 2024 Notes to Consolidated Condensed Financial Statements Item 2–Unregistered Sales of Equity Securities and Use of Proceeds For the Three Months EndedMarch 31, US$US$thousandsthousands(Unaudited)(Unaudited) (1,675)Adjustments required to reconcile net loss to net cash used in operating activities:Depreciation184Amortization of Right of Use Lease Assets26Cost of options issued to employees, directors and others as non-cash compensation18 Governmental receivables(78)Other receivables(20)Lease obligation – current and non-current(39)Provision for severance pay, net1Accounts payable(164) Cash flows from investing activitiesAcquisition of property and equipment(8) Net cash used in investing activities Cash flows from financing activitiesProceeds from exercise of stock options Costs paid related to the issuance of new shares-Proceeds from issuance of stock and exercise of warrants6,040Net cash provided by financing activities6,041 Cash, cash equivalents and restricted cash – end of period6,122Supplemental schedule of cash flow information Addition of right of use lease assets and lease obligations US$US$thousandsthousandsCash and cash equivalents5,058 Cash and cash equivalents – restricted1,0646,1226 Note1- Nature of Operations, Basis of Presentation and Going ConcernA. Nature of OperationsZion Oil & Gas, Inc., a Delaware corporation (“we,” “our,” “Zion” or the “Company”) is an oil and gas exploration company witha history of25years of oil & gas exploration in Israel. As ofMarch 31, 2025, the Company hasnorevenues from its oil and gas branch is to operate a foreign treasury center for the Company. OnJanuary 24, 2020,Zion incorporated a wholly owned subsidiary, Zion Drilling, Inc., a Delaware corporation, for the purpose ofowning a drilling rig, related equipment and spare parts, and onJanuary 31, 2020,Zion incorporated another wholly ownedsubsidiary, Zion Drilling Services, Inc., a Delaware corporation, to act as the contractor providing such drilling services. When provide drilling services at market rates then in effect.OnOctober 19, 2022,Zion incorporated a wholly owned subsidiary in Israel, Zion Drilling Israel Ltd, for the purpose of owning adrilling rig and related equipment and spare parts.On this date, the entity was created as a placeholder only. A bank account wascreated inNovember 2024and a tax file was created inJanuary 2025.The bank account is denominated in Israeli Shekels.Whenthere will be bank transactions in the future, there will be a translation adjustment to United States Dollars. Zion Drilling IsraelLTD didnothave any activities during thethreemonths endedMarch 31, 2025. Exploration Rights/Exploration ActivitiesNew Megiddo Valleys License434(“NMVL434”)–Megiddo-Jezreel#1Re-Entry (“MJ-01”) OnFebruary 21, 2024,members of the Supervisory Committee visited our rig site. During this visit, they interacted with staff fromZion Oil & Gas, our consultants and potential service providers. Some of these interactions occurred at Kibbutz Sde Eliyahu, while others were conducted through video conferencing with participants from the United States, Europe and the Middle East. Following these discussions, the Committee officially accepted our work plan for the MJ-01 re-completion project. Thisacceptance allowed us to sign agreements and secure mobilization dates with our service providers to commence and complete the The initial phase of our recompletion project consisted of a categorythreeinspection of the drilling rig, rigging down from MJ-02and moving and rigging up over the MJ-01well.Stagetwoof the operation involved drilling out both the steel plugs along with625meters (about2,050feet) of cement plugs andre-conditioning the wellbore to allow unhindered access to the selected zones for testing.Aftersixyears of inactivity in a well overthreemiles deep, the MJ-01wellbore presents a challenging environment. Thewellboreappears to have experienced elastic and partial collapse of the casing in some areas. This led to the bottom hole assembly who arenotavailable in Israel.An even further delay was created by many of our rig crew members reaching the limit of their work visas. This requires us toreset visas, which isnota simple process, and it adds another layer of delay and complexity. Moreover, the recent changes to visaeligibility have further complicated the process, as Israel, in just the last few months, has changed their90-day visa renewals fromresetting at the end of the year to resetting aftersixmonths after expiration. We are working with the Ministry of Interior on this October 7,we temporarily paused active operations duringQ42024.This was a necessary step to ensure the safety of ourpersonnel and to ensure proper engineering and tools are brought to location to avoid lengthy delays waiting for additional tools