Each of these payments is to be funded by Zion Oil & Gas. The MoU provides that Zion Drilling will be 51% owned by Zion Oil & Gas and 49% owned by AME. AME will be responsible for the daily drilling operations of Zion Drilling.
John Brown, founder and chairman of Zion Oil & Gas, said: “The signing of the MoU with AME marks a significant milestone in the life of Zion Oil & Gas. We are looking forward to establish Zion Drilling as this will help us to drill as many wells as it takes, in order to recover the treasures of the deep that lie beneath.”
Richard Rinberg, CEO of Zion Oil & Gas, said: “By establishing Zion Drilling, we will clearly demonstrate our ability to continue to drill wells in Israel without dependence on any outside third party. We will have secured permanent control of a drilling rig for our planned future operations and consequently also raised Zion Oil & Gas’ exploration business to a completely new level.”
