锡安石油和天然气 2025年季度报告

INDEX PAGE PART I—FINANCIAL INFORMATION Item 1 –Financial Statements –Unaudited Consolidated Condensed Balance Sheets–March 31, 2025 and December 31, 20241Consolidated Condensed Statements of Operations for the three months ended March 31, 2025 and 20242Consolidated Condensed Statement of Changes in Stockholders’Equity for thethree months endedMarch 31, 2025and 20243Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2025 and 20245Notes to Consolidated Condensed Financial Statements7Item 2–Management’s Discussion and Analysis of Financial Condition and Results of Operations35Item 3–Quantitative and Qualitative Disclosures About Market Risk44Item 4–Controls and Procedures44 PART II—OTHER INFORMATION 46 SIGNATURES47 Zion Oil & Gas, Inc. Zion Oil & Gas, Inc. Zion Oil & Gas, Inc. Consolidated Condensed Notes to Financial Statements (Unaudited) Note1- Nature of Operations, Basis of Presentation and Going Concern A. Nature of Operations Zion 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 Zion maintains its corporate headquarters in Dallas, Texas. The Company also has branch offices in Caesarea, Israel and Geneva,Switzerland. The purpose of the Israel branch is to support the Company’s operations in Israel, and the purpose of the Switzerland 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 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.When Zion has the trademark “ZION DRILLING” filed with the United States Patent and Trademark Office. Zion has the trademarkfiled with the World Intellectual Property Organization in Geneva, Switzerland, pursuant to the Madrid Agreement and Protocol. In Exploration Rights/Exploration Activities New Megiddo Valleys License434(“NMVL434”)–Megiddo-Jezreel#1Re-Entry (“MJ-01”) OnSeptember 14, 2023,the Israel Ministry of Energy approved a new Megiddo Valleys License434(“NMVL434”), allowing foroil and gas exploration on approximately75,000acres or302square kilometers. This Exploration License434is valid forthreeyears untilSeptember 13, 2026withfourpotential1-year extensions for a total ofsevenyears untilSeptember 13, 2030.This 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, whileothers 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. This Table of Contents Zion Oil & Gas, Inc. Consolidated Condensed Notes to Financial Statements (Unaudited) Note1- Nature of Operations, Basis of Presentation and Going Concern(cont’d) 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(“BHA”) becoming stuck over4,000meters from surface. Attempts to overpull the BHA were unsuccessful, and the crew Another delay arose out of the logistical challenges we face. The ongoing conflict in the region has impacted shipping routes, thetimely arrival of necessary equipment, and created travel difficulties for our rig crews. Our operations require specialized rig crews 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,