Despite Zion having been granted a new exploration license from the Israeli government in September, the company’s prospects seem, by its own account, bleak. Activities are suspended “as a result of the Israel-Hamas War,” per a quarterly report filed with the Securities and Exchange Commission on November 9. So far this year the company has accrued a net loss of $6.2 million and accumulated a $285 million deficit. “These factors raise substantial doubt about the Company’s ability to continue,” the report states. “To carry out planned operations, the Company must raise additional funds through additional equity and/or debt issuances or through profitable operations. There can be no assurance that this capital or positive operational income will be available to the Company, and if it is not, the Company may be forced to curtail or cease exploration and development activities.”
Though Zion reports “no revenue” from oil and gas operations, its top managers have made out pretty well. Another recent SEC filing shows that Brown made $1.7 million as the company’s Executive Chairman between 2020 and 2022. CEO Robert Dunn took home $1.2 million over the same time period, during which Zion’s CFO and President made $1.1 million and $1.3 million, respectively.
The most recent fundraising push appears to be capitalizing on the war in Israel-Palestine. The day after I signed up to receive an informational packet about Zion Oil & Gas through its website, I received an automated email from marketing and investor relations manager Andrew Summey with three action items: to update my email settings, sign up to receive a “highlighting Zion’s vision for Israel’s economic and political independence through the discovery of oil and/or gas” (if I had not already), and to “take a moment to pray for Zion Oil & Gas. There are many difficult challenges toward exploring for oil and gas in the region.”