Zion Oil & Gas has signed a memorandum of understanding with Aladdin Middle East, an oil and gas exploration and production company, confirming both parties' intent to sign a contract to drill Zion's planned Ma'anit-Rehoboth-2 well and other wells in Israel.
Aladdin Middle East (AME) is currently refurbishing and updating one of its 2,000HP rigs, in order to be able to drill Zion’s wells directionally to below 18,000 feet.
The parties intend to sign the definitive drilling contract when the drilling rig nears completion. It is anticipated that the rig will arrive in Israel in September 2008.
Glen Perry, president and COO of Zion Oil & Gas, said: I am confident that our relationship with AME will enable Zion to drill our wells both efficiently and successfully to the planned target depths. Especially as, quite recently, AME successfully drilled a 20,000-foot well in Bulgaria with one of their 2,000HP rigs.