Zion Oil & Gas encounters oil at Megiddo-Jezreel well in Israel

US-based exploration company Zion Oil & Gas has encountered oil at its Megiddo-Jezreel well in Israel.

The company identified free-flowing hydrocarbons while circulating and drilling mud during the current open hole wireline logging and subsequent reaming operations.

In November last year, the company secured an extension on its Megiddo-Jezreel Licence No. 401 for a period of two years through to 2 December 2019.

Zion Oil & Gas president and COO Dustin Guinn said: “We were cautiously optimistic given the amount of gas that accumulated in the well after returning from Shabbat after calling total depth (TD) at 5,026m.

“After making our first of three open-hole logging runs, we decided to ream to bottom to clean the hole out in anticipation of our second logging run.

“After circulating the well, we experienced a continued and significant increase in gas followed by clear evidence of oil in our circulated mud from the bottom of the well.”

As a result of the discovery, the company is set to continue to drill up to another 70m, following which it will continue with the open-hole logs.

The management refused to comment on the commerciality or ability to successfully produce the well.

The well is located in Jezreel Valley and drilling commenced in June last year.

Founded in 2000, Zion Oil & Gas is focused on oil and gas exploration in the Megiddo-Jezreel onshore petroleum exploration licence covering around 99,000 acres.