Delaware
|
20-0065053
|
(State or other jurisdiction of incorporation or
organization)
|
(I.R.S. Employer Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company x
|
Page
|
|
Item
1 - Financial Statements – Unaudited
|
|
Balance
Sheets - September 30, 2009 and December 31,
2008
|
1
|
Statements
of Operations for the three months and nine months ended September 30,
2009 and 2008 and the period from April 6, 2000 (inception) to September
30, 2009
|
2
|
Statements
of Changes in Stockholders' Equity for the nine months ended September 30,
2009 and the period from April 6, 2000 (inception) to September 30,
2009
|
3
|
Statements
of Cash Flows for the nine months ended September 30, 2009 and 2008 and
the period from April 6, 2000 (inception) to September 30,
2009
|
12
|
Notes
to Unaudited Interim Financial Statements
|
14
|
Item
2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
|
47
|
Item
3 – Quantitative and Qualitative Disclosures about Market
Risk
|
52
|
Item
4(T) - Controls and Procedures
|
53
|
PART
II — OTHER INFORMATION
|
|
Item
1 – Legal Proceedings
|
53
|
Item
1.A. – Risk Factors
|
53
|
Item
2 - Unregistered Sales of Equity Securities and Use of
Proceeds
|
53
|
Item
3 - Defaults upon Senior Securities
|
55
|
Item
4 – Submission of Matters to a Vote of Security Holders
|
55
|
Item
5 - Other Information
|
55
|
Item
6 – Exhibits
|
55
|
SIGNATURES
|
56
|
September 30
|
December 31
|
|||||||
2009
|
2008
|
|||||||
US$ thousands
|
US$ thousands
|
|||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
11,022 | 1,726 | ||||||
Prepaid
expenses and other
|
457 | 523 | ||||||
Prepaid
offering costs
|
36 | 14 | ||||||
Refundable
Value-Added Tax
|
646 | 26 | ||||||
Total
current assets
|
12,161 | 2,289 | ||||||
Unproved
oil and gas properties, full cost method
|
16,161 | 5,246 | ||||||
Property
and equipment
|
||||||||
Net
of accumulated depreciation of $72,000 and $60,000
|
75 | 83 | ||||||
Other
assets
|
||||||||
Assets
held for severance benefits
|
38 | 58 | ||||||
Total
other assets
|
38 | 58 | ||||||
Total
assets
|
28,435 | 7,676 | ||||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
51 | 117 | ||||||
Accrued
liabilities
|
1,143 | 223 | ||||||
Deferred
officers compensation
|
256 | 1,487 | ||||||
Total
current liabilities
|
1,450 | 1,827 | ||||||
Provision
for severance pay
|
182 | 174 | ||||||
Deferred
officers’ compensation
|
- | 120 | ||||||
Total
liabilities
|
1,632 | 2,121 | ||||||
Commitments
and contingencies (see Note 5)
|
||||||||
Stockholders’
equity
|
||||||||
Common
stock, par value $.01; Authorized: 50,000,000 and
30,000,000 shares at 2009 and 2008, respectively; Issued and
outstanding: 15,101,151 and 10,541,563 shares at 2009 and 2008
respectively
|
151 | 105 | ||||||
Additional
paid-in capital
|
54,122 | 29,855 | ||||||
Deficit
accumulated in development stage
|
(27,470 | ) | (24,405 | ) | ||||
Total
stockholders’ equity
|
26,803 | 5,555 | ||||||
Total
liabilities and stockholders' equity
|
28,435 | 7,676 |
Period
from
|
||||||||||||||||||||
April
6, 2000
|
||||||||||||||||||||
For
the three month period
|
For
the nine month period
|
(inception)
to
|
||||||||||||||||||
ended
September 30
|
ended
September 30
|
September
30
|
||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
||||||||||||||||
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||||
Revenues
|
- | - | - | - | - | |||||||||||||||
General
and administrative expenses
|
||||||||||||||||||||
Legal
and professional
|
156 | 179 | 623 | 779 | 5,717 | |||||||||||||||
Salaries
|
368 | 312 | 1,768 | 1,255 | 7,476 | |||||||||||||||
Other
|
341 | 374 | 816 | 1,096 | 4,470 | |||||||||||||||
Impairment
of unproved oil and gas properties
|
- | - | - | - | 9,494 | |||||||||||||||
Loss
from operations
|
(865 | ) | (865 | ) | (3,207 | ) | (3,130 | ) | (27,157 | ) | ||||||||||
Other
expense, net
|
||||||||||||||||||||
Termination
of initial public offering
|
- | - | - | - | (527 | ) | ||||||||||||||
Other
income, net
|
- | - | 76 | - | 80 | |||||||||||||||
Interest
income, net
|
48 | 12 | 66 | 69 | 134 | |||||||||||||||
Loss
before income taxes
|
(817 | ) | (853 | ) | (3,065 | ) | (3,061 | ) | (27,470 | ) | ||||||||||
Income
taxes
|
- | - | - | - | - | |||||||||||||||
Net
loss
|
(817 | ) | (853 | ) | (3,065 | ) | (3,061 | ) | (27,470 | ) | ||||||||||
Net
loss per share of common stock - basic and diluted (in US$)
(See Note 3D)
|
(0.05 | ) | (0.08 | ) | (0.24 | ) | (0.28 | ) | (3.75 | ) | ||||||||||
Weighted-average
shares outstanding – basic and diluted (in thousands) (See Note
3D)
|
15,079 | 11,029 | 12,902 | 11,026 | 7,334 |
Deficit
|
||||||||||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
paid-in
|
in
development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
stage
|
Total
|
||||||||||||||||||||||
Thousands
|
US$
thousands
|
Thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||||||||||
Balances
April 6, 2000
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Issued
for cash ($0.001 per share)
|
- | - | 2,400 | * - | 2 | - | 2 | |||||||||||||||||||||
Issuance
of shares and warrants in a private offering ($1 per
share)
|
- | - | 100 | * - | 100 | - | 100 | |||||||||||||||||||||
Costs
associated with the issuance of shares
|
- | - | - | - | (24 | ) | - | (24 | ) | |||||||||||||||||||
Waived
interest on conversion of debt
|
- | - | - | - | * - | - | * - | |||||||||||||||||||||
Value
of warrants granted to employees
|
- | - | - | - | 2 | - | 2 | |||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (5 | ) | (5 | ) | |||||||||||||||||||
Balances,
December 31, 2000
|
- | - | 2,500 | * - | 80 | (5 | ) | 75 | ||||||||||||||||||||
Issuance
of shares and warrants in a private offering in January 2001 ($1 per
share)
|
- | - | 135 | * - | 135 | - | 135 | |||||||||||||||||||||
Issuance
of shares and warrants in a private offering which
closed in September 2001 ($1 per share)
|
- | - | 125 | * - | 125 | - | 125 | |||||||||||||||||||||
Payment
of accounts payable through issuance of shares and
warrants
|
- | - | 40 | * - | 40 | - | 40 | |||||||||||||||||||||
Payment
of note payable through issuance of shares and warrants
|
- | - | 25 | * - | 25 | - | 25 | |||||||||||||||||||||
Issuance
of shares and warrants in a private offering which closed in November 2001
($1 per share)
|
- | - | 175 | * - | 175 | - | 175 | |||||||||||||||||||||
Costs
associated with the issuance of shares
|
- | - | - | - | (85 | ) | - | (85 | ) | |||||||||||||||||||
Waived
interest on conversion of debt
|
- | - | - | - | 1 | - | 1 | |||||||||||||||||||||
Value
of warrants granted to employees
|
- | - | - | - | 37 | - | 37 | |||||||||||||||||||||
Value
of warrants granted to directors and consultants
|
- | - | - | - | 3 | - | 3 | |||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (207 | ) | (207 | ) | |||||||||||||||||||
Balances,
December 31, 2001
|
- | - | 3,000 | * - | 536 | (212 | ) | 324 |
Deficit
|
||||||||||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
paid-in
|
in development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
stage
|
Total
|
||||||||||||||||||||||
Thousands
|
US$ thousands
|
Thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||||||||||||||
Change
in par value of common shares from $ 0.0001 per share to $0.01 per
share
|
- | - | - | 30 | (30 | ) | - | - | ||||||||||||||||||||
Issuance
of shares and warrants in a private offering which closed in January 2002
($1 per share)
|
- | - | 20 | * - | 20 | - | 20 | |||||||||||||||||||||
Issuance
of shares and warrants in a private offering which closed in November 2002
($10 per share)
|
25 | * - | 22 | * - | 254 | - | 254 | |||||||||||||||||||||
Payment
of accounts payable through issuance of preferred shares and
warrants
|
13 | * - | - | - | 127 | - | 127 | |||||||||||||||||||||
Payment
of accounts payable through issuance of common shares and
warrants
|
- | - | 111 | 1 | 131 | - | 132 | |||||||||||||||||||||
Payment
of note payable through issuance of shares and warrants
|
5 | * - | - | - | 50 | - | 50 | |||||||||||||||||||||
Payment
of accounts payable to employee through issuance of shares upon exercise
of warrants
|
- | - | 400 | 4 | 76 | - | 80 | |||||||||||||||||||||
Costs
associated with the issuance of shares
|
- | - | - | - | (160 | ) | - | (160 | ) | |||||||||||||||||||
Waived
interest on conversion of debt
|
- | - | - | - | 3 | - | 3 | |||||||||||||||||||||
Deferred
financing costs on debt conversions / modifications
|
- | - | - | - | 21 | - | 21 | |||||||||||||||||||||
Value
of warrants granted to employees
|
- | - | - | - | 1 | - | 1 | |||||||||||||||||||||
Value
of warrants granted to directors and consultants
|
- | - | - | - | 13 | - | 13 | |||||||||||||||||||||
Net
loss
|
- | - | - | - | - | (403 | ) | (403 | ) | |||||||||||||||||||
Balances,
December 31, 2002
|
43 | * - | 3,553 | 35 | 1,042 | (615 | ) | 462 |
Deficit
|
||||||||||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
paid-in
|
in
development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
stage
|
Total
|
||||||||||||||||||||||
Thousands
|
US$
thousands
|
Thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||||||||||
Issuance
of shares in connection with executive employment
|
- | - | 50 | 1 | 49 | - | 50 | |||||||||||||||||||||
Issuance
of share on warrants exercise
|
- | - | 165 | 2 | 31 | - | 33 | |||||||||||||||||||||
Issuance
of dividend shares to record holders as of December 31,
2002
|
4 | * - | - | - | * - | - | - | |||||||||||||||||||||
Issuance
of shares and warrants in a private offering which closed in February 2003
($10 per share):
|
||||||||||||||||||||||||||||
for
cash consideration
|
10 | * - | - | - | 105 | - | 105 | |||||||||||||||||||||
for reduction of accounts payable
|
5 | * - | - | - | 45 | - | 45 | |||||||||||||||||||||
Issuance
of shares and warrants as compensation for extension of $100,000 line of
credit
|
1 | * - | - | - | 10 | - | 10 | |||||||||||||||||||||
Payment
of account payable through issuance of shares and warrants
|
* - | * - | - | - | 1 | - | 1 | |||||||||||||||||||||
Conversion
of preferred shares to common shares in reincorporation
merger
|
(63 | ) | *(- | ) | 763 | 7 | (7 | ) | - | - | ||||||||||||||||||
Issuance
of shares in a private offering which closed in July 2003 ($3 per
share):
|
||||||||||||||||||||||||||||
for
cash consideration
|
- | - | 33 | * - | 99 | - | 99 | |||||||||||||||||||||
for reduction of accounts payable
|
- | - | 3 | * - | 9 | - | 9 | |||||||||||||||||||||
Issuance
of shares upon exercise of warrants:
|
||||||||||||||||||||||||||||
for cash consideration
|
- | - | 25 | * - | 25 | - | 25 | |||||||||||||||||||||
for reduction of accounts payable
|
- | - | 124 | 1 | 142 | - | 143 | |||||||||||||||||||||
Issuance
of shares upon exercise of warrants for cash consideration
|
- | - | 63 | 1 | 82 | - | 83 | |||||||||||||||||||||
Payment
of account payable through issuance of shares
|
- | - | 80 | 1 | 139 | - | 140 | |||||||||||||||||||||
Costs
associated with the issuance of shares
|
- | - | - | - | (58 | ) | - | (58 | ) | |||||||||||||||||||
Value
of warrants granted to employees
|
- | - | - | - | 47 | - | 47 | |||||||||||||||||||||
Deferred
financing costs on debt conversions / modifications
|
- | - | - | - | (10 | ) | - | (10 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | - | - | (873 | ) | (873 | ) | |||||||||||||||||||
Balances
as at December 31, 2003
|
- | - | 4,859 | 48 | 1,751 | (1,488 | ) | 311 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common Stock
|
paid-in
|
in development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||||||||
Issuance
of shares on warrants exercise
|
123 | 1 | 183 | - | 184 | |||||||||||||||
Issuance
of shares and warrants in a private offering
|
251 | 3 | 1,002 | - | 1,005 | |||||||||||||||
Payment
of officer salaries through issuance of shares and
warrants
|
46 | 1 | 184 | - | 185 | |||||||||||||||
Payment
of accounts payable to officers and consultants upon exercise of
warrants
|
80 | 1 | 99 | - | 100 | |||||||||||||||
Payment
of director honorariums through issuance of shares and
warrants
|
11 | * - | 45 | - | 45 | |||||||||||||||
Payment
of account payable through issuance of shares and warrants
|
13 | * - | 50 | - | 50 | |||||||||||||||
Payment
of bridge loan through issuance of shares and warrants
|
125 | 1 | 499 | - | 500 | |||||||||||||||
Payment
of bridge loan interest and commitment fee through issuance of shares and
warrants
|
8 | * - | 30 | - | 30 | |||||||||||||||
Payment
of bridge loan finders fee through issuance of shares and
warrants
|
2 | * - | 7 | - | 7 | |||||||||||||||
Payment
of service bonus through issuance of shares and warrants
|
20 | * - | 20 | - | 20 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (59 | ) | - | (59 | ) | |||||||||||||
Value
of warrants granted to employees
|
- | - | 41 | - | 41 | |||||||||||||||
Deferred
financing costs on debt conversions / modifications
|
- | - | 30 | - | 30 | |||||||||||||||
Net
loss
|
- | - | - | (1,737 | ) | (1,737 | ) | |||||||||||||
Balances,
December 31, 2004
|
5,538 | 55 | 3,882 | (3,225 | ) | 712 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common
Stock
|
paid-in
|
in
development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||||
Issuance
of shares on warrants exercised:
|
||||||||||||||||||||
For
cash
|
493 | 5 | 872 | - | 877 | |||||||||||||||
For
payment of deferred officer salaries
|
17 | * - | 21 | - | 21 | |||||||||||||||
For
exchange of shares of common stock
|
120 | 1 | (1 | ) | - | - | ||||||||||||||
Issuance
of shares and warrants in a private offering that closed in March
2005:
|
||||||||||||||||||||
For
cash
|
519 | 5 | 2,070 | - | 2,075 | |||||||||||||||
For
payment of deferred officer salaries
|
10 | * - | 40 | - | 40 | |||||||||||||||
For
payment of accounts payable
|
6 | * - | 25 | - | 25 | |||||||||||||||
Issuance
of shares and warrants in a private offering that closed in June
2005:
|
||||||||||||||||||||
For
cash
|
259 | 3 | 1,292 | - | 1,295 | |||||||||||||||
For
payment of directors honoraria
|
14 | * - | 70 | - | 70 | |||||||||||||||
For
payment of accounts payable
|
3 | * - | 15 | - | 15 | |||||||||||||||
Issuance
of shares in a private offering that closed in October
2005:
|
||||||||||||||||||||
For
cash
|
584 | 6 | 2,914 | - | 2,920 | |||||||||||||||
For
payment of deferred officer salaries
|
40 | * - | 200 | - | 200 | |||||||||||||||
For
payment of accounts payable
|
22 | * - | 110 | - | 110 | |||||||||||||||
Issuance
of shares in a private offering that closed in December
2005
|
80 | 1 | 439 | - | 440 | |||||||||||||||
Shares
to be issued for services provided by director
|
- | - | 42 | - | 42 | |||||||||||||||
Value
of warrants and options granted to employees
|
- | - | 216 | - | 216 | |||||||||||||||
Value
of warrants granted to directors and consultants
|
- | - | 16 | - | 16 | |||||||||||||||
Deferred
financing costs on debt conversions /modifications
|
- | - | 44 | - | 44 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (275 | ) | - | (275 | ) | |||||||||||||
Net
loss
|
- | - | - | (1,605 | ) | (1,605 | ) | |||||||||||||
Balances,
December 31, 2005
|
7,705 | 76 | 11,992 | (4,830 | ) | 7,238 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common
Stock
|
paid-in
|
in
development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||||
Issuance
of shares on warrants exercised:
|
||||||||||||||||||||
For
cash
|
253 | 3 | 1,151 | - | 1,154 | |||||||||||||||
For
debt
|
60 | 1 | 276 | - | 277 | |||||||||||||||
Issuance
of shares and warrants in private offering closings in first quarter
2006:
|
||||||||||||||||||||
For
cash
|
66 | 1 | 362 | - | 363 | |||||||||||||||
For
payment of accounts
|
||||||||||||||||||||
Payable
|
3 | * - | 14 | - | 14 | |||||||||||||||
Shares
issued for services provided by officer
|
200 | 2 | 248 | - | 250 | |||||||||||||||
Issuance
of shares and warrants in a private offering that closed in September 2006
for cash
|
23 | * - | 126 | - | 126 | |||||||||||||||
Value
of options granted to employees
|
- | - | 162 | - | 162 | |||||||||||||||
Value
of warrants granted to underwriter
|
- | - | 20 | - | 20 | |||||||||||||||
Value
of shares gifted to directors, employees and service
providers
|
- | - | 147 | - | 147 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (681 | ) | - | (681 | ) | |||||||||||||
Funds
received from public offering for subscription shares:
|
||||||||||||||||||||
For
cash
|
410 | 4 | 2,867 | - | 2,871 | |||||||||||||||
For
debt
|
27 | * - | 188 | - | 188 | |||||||||||||||
Net
loss
|
- | - | - | (2,510 | ) | (2,510 | ) | |||||||||||||
Balances
December 31, 2006
|
8,747 | 87 | 16,872 | (7,340 | ) | 9,619 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common Stock
|
paid-in
|
in development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||||||||
Funds
received from public offering for subscription shares:
|
||||||||||||||||||||
For
cash
|
1,336 | 14 | 9,338 | - | 9,352 | |||||||||||||||
For
debt
|
33 | * - | 235 | - | 235 | |||||||||||||||
Compensation
in respect of shares previously issued for services provided by
officer
|
- | - | 208 | - | 208 | |||||||||||||||
Value
of options granted to employees
|
- | - | 337 | - | 337 | |||||||||||||||
Value
of warrants granted to underwriter
|
- | - | 79 | - | 79 | |||||||||||||||
Value
of shares granted to employees
|
5 | *- | 25 | - | 25 | |||||||||||||||
Value
of shares gifted to employees
|
- | - | 7 | - | 7 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (1,027 | ) | - | (1,027 | ) | |||||||||||||
Net
loss
|
- | - | - | (13,047 | ) | (13,047 | ) | |||||||||||||
Balances
December 31, 2007
|
10,121 | 101 | 26,074 | (20,387 | ) | 5,788 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common Stock
|
paid-in
|
in development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||||||||
Funds
received from Unit Offering
for subscription shares:
|
||||||||||||||||||||
For
cash
|
405 | 4 | 4,040 | - | 4,044 | |||||||||||||||
For
debt
|
12 | *- | 120 | - | 120 | |||||||||||||||
Value
of warrants granted to employees
|
- | - | 266 | - | 266 | |||||||||||||||
Value
of options granted to directors and consultants
|
- | - | 44 | - | 44 | |||||||||||||||
Value
of shares granted to employees
|
4 | *- | 25 | - | 25 | |||||||||||||||
Value
of shares gifted to employees
|
- | - | 101 | - | 101 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (815 | ) | - | (815 | ) | |||||||||||||
Net
loss
|
- | - | - | (4,018 | ) | (4,018 | ) | |||||||||||||
Balances
December 31, 2008
|
10,542 | 105 | 29,855 | (24,405 | ) | 5,555 |
Deficit
|
||||||||||||||||||||
Additional
|
accumulated
|
|||||||||||||||||||
Common Stock
|
paid-in
|
in development
|
||||||||||||||||||
Shares
|
Amounts
|
capital
|
stage
|
Total
|
||||||||||||||||
Thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||||||||
Funds
received from Unit Offering
for subscription shares:
|
||||||||||||||||||||
For
cash
|
237 | 3 | 2,370 | - | 2,373 | |||||||||||||||
For
debt
|
13 | *- | 126 | - | 126 | |||||||||||||||
Funds
received from Rights Offering
|
4,200 | 42 | 20,958 | - | 21,000 | |||||||||||||||
Funds
received from warrant exercises
|
59 | 1 | 410 | - | 411 | |||||||||||||||
Underwriter
warrants exercised in cashless exercise
|
13 | - | - | - | - | |||||||||||||||
Director
warrants and options exercised in cashless exercises
|
37 | - | - | - | - | |||||||||||||||
Value
of options granted to employees
|
- | - | 436 | - | 436 | |||||||||||||||
Value
of options granted to directors and consultants
|
- | - | 328 | - | 328 | |||||||||||||||
Value
of shares gifted to employees
|
- | - | 4 | - | 4 | |||||||||||||||
Costs
associated with the issuance of shares
|
- | - | (365 | ) | - | (365 | ) | |||||||||||||
Net
loss
|
- | - | - | (3,065 | ) | (3,065 | ) | |||||||||||||
Balances
September 30, 2009
|
15,101 | 151 | 54,122 | (27,470 | ) | 26,803 |
Period from
|
||||||||||||
April 6, 2000
|
||||||||||||
For the nine month
|
(inception) to
|
|||||||||||
period ended September 30
|
September 30
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
loss
|
(3,065 | ) | (3,061 | ) | (27,470 | ) | ||||||
Adjustments
required to reconcile net loss to net cash
|
||||||||||||
used
in operating activities:
|
||||||||||||
Depreciation
|
12 | 24 | 78 | |||||||||
Officer,
director and other fees, paid via common stock
|
4 | 25 | 2,269 | |||||||||
Value
of options and warrants issued to employees, directors &
others
|
764 | 252 | 2,048 | |||||||||
Interest
paid through issuance of common stock
|
- | - | 17 | |||||||||
Write-off
of costs associated with public offering
|
- | - | 507 | |||||||||
Loss
on disposal of equipment
|
- | - | 4 | |||||||||
Impairment
of unproved oil and gas properties
|
- | - | 9,494 | |||||||||
Change
in assets and liabilities, net:
|
||||||||||||
Decrease
in inventories
|
- | - | 150 | |||||||||
Prepaid
expenses and other
|
66 | (439 | ) | (457 | ) | |||||||
(Increase)
in prepaid offering costs
|
(22 | ) | (417 | ) | (36 | ) | ||||||
Change
in refundable value-added tax
|
(620 | ) | 41 | (646 | ) | |||||||
Severance
pay, net
|
28 | 3 | 144 | |||||||||
Accounts
payable
|
(60 | ) | (86 | ) | 700 | |||||||
Accrued
liabilities
|
920 | (41 | ) | 1,144 | ||||||||
(Decrease)Increase
in deferred officers' compensation
|
(1,231 | ) | 574 | 496 | ||||||||
Net
cash used in operating activities
|
(3,204 | ) | (3,125 | ) | (11,558 | ) | ||||||
Cash
flows from investing activities
|
||||||||||||
Acquisition
of property and equipment
|
(4 | ) | (39 | ) | (157 | ) | ||||||
Investment
in unproved oil and gas properties
|
(10,915 | ) | (975 | ) | (25,805 | ) | ||||||
Net
cash used in investing activities
|
(10,919 | ) | (1,014 | ) | (25,962 | ) | ||||||
Cash
flows from financing activities
|
||||||||||||
Deferred
financing costs on debt conversions and modification
|
- | - | 89 | |||||||||
Loan
proceeds – related party
|
- | - | 259 | |||||||||
Loan
principal repayments – related party
|
- | - | (259 | ) | ||||||||
Loan
proceeds – other
|
- | - | 500 | |||||||||
Proceeds
from sale of stock
|
23,784 | - | 51,603 | |||||||||
Costs
associated with the issuance of shares
|
(365 | ) | - | (3,650 | ) | |||||||
Net
cash provided by financing activities
|
23,419 | - | 48,542 | |||||||||
Net
increase (decrease) in cash
|
9,296 | (4,139 | ) | 11,022 | ||||||||
Cash
– beginning of period
|
1,726 | 4,590 | - | |||||||||
Cash
– end of period
|
11,022 | 451 | 11,022 |
Period from
|
||||||||||||
April 6, 2000
|
||||||||||||
For the nine month
|
(inception) to
|
|||||||||||
period ended September 30
|
September 30
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
US$ thousands
|
US$ thousands
|
US$ thousands
|
||||||||||
Supplemental
information
|
||||||||||||
Cash
paid for interest
|
4 | - | 62 | |||||||||
Cash
paid for income taxes
|
- | - | - | |||||||||
Non-cash
investing and financing activities:
|
||||||||||||
Payment
of accounts payable through issuance
of preferred and common stock
|
6 | - | 956 | |||||||||
Payment
of note payable through issuance
of common stock
|
- | - | 575 | |||||||||
Payment
of accounts payable through issuance
of note payable
|
- | - | 35 | |||||||||
Financing
costs paid through issuance of common stock
|
- | - | 25 | |||||||||
Increase
in accounts payable for financing costs
|
- | - | 382 | |||||||||
Waived
interest on debt conversions
|
- | - | 4 | |||||||||
Shares
issued for debt conversion
|
120 | 252 | 940 | |||||||||
Shares
issued for services provided by officer
|
- | - | 500 | |||||||||
Value
of warrants and options granted to employees
|
436 | - | 1,544 | |||||||||
Value
of warrants granted to directors and consultants
|
328 | - | 405 | |||||||||
Value
of warrants granted to underwriters
|
- | - | 99 | |||||||||
Value
of shares granted to employees
|
- | 25 | 50 | |||||||||
Value
of shares gifted to directors, employees and
service providers
|
4 | - | 259 | |||||||||
Deferred
financing costs
|
- | - | 85 | |||||||||
Transfer
of inventory to oil and gas properties
|
- | - | 150 |
|
A.
|
Nature
of Operations
|
|
A.
|
Nature
of Operations (cont’d)
|
|
A.
|
Nature
of Operations (cont’d)
|
|
A.
|
Nature
of Operations (cont’d)
|
|
B.
|
Management
Presentation and Liquidity
|
|
B.
|
Management
Presentation and Liquidity (cont’d)
|
|
C.
|
Basis
of Presentation
|
|
C.
|
Basis
of Presentation (cont’d)
|
|
A.
|
Oil
and Gas Properties and Impairment
|
|
A.
|
Oil
and Gas Properties and Impairment
(cont’d)
|
|
A.
|
Oil
and Gas Properties and Impairment
(cont’d)
|
September 30
2009
|
December 31
2008
|
|||||||
US$ thousands
|
US$ thousands
|
|||||||
Excluded
from amortization base:
|
||||||||
Drilling
operations, completion costs and other related costs
|
13,542 | 3,641 | ||||||
Capitalized
salary costs
|
927 | 582 | ||||||
Legal
costs and license fees
|
909 | 684 | ||||||
Other
costs
|
783 | 339 | ||||||
$ | 16,161 | $ | 5,246 |
Nine Month
Period ended
September 30
2009
|
Year
ended
December
31 2008
|
Period from
April 6, 2000
(inception) to
September 30,
2009
|
||||||||||
US$
thousands
|
US$
thousands
|
US$ thousands
|
||||||||||
Drilling
operations, completion costs and other related costs
|
- | - | 7,959 | |||||||||
Capitalized
salary costs
|
- | - | 683 | |||||||||
Legal
costs and license fees
|
- | - | 509 | |||||||||
Other
costs
|
- | - | 343 | |||||||||
- | - | 9,494 |
|
B.
|
Recently
Issued Accounting Pronouncements
|
1.
|
SFAS
166 – Accounting for Transfers of Financial Assets – an amendment of FASB
Statement No. 140 (SFAS 166)
|
2.
|
SFAS
167 – Amendments to FASB Interpretation No. 46(R) (SFAS
167)
|
|
B.
|
Recently
Issued Accounting Pronouncements
(cont’d)
|
2.
|
SFAS
167 – Amendments to FASB Interpretation No. 46(R) (SFAS 167)
(cont’d)
|
3.
|
ASU
2009-12 - Fair Value Measurements and Disclosures (820)- Investments in
Certain Entities That Calculate Net Asset Value per Share (or Its
Equivalent)
|
4.
|
ASU
2009-13 - Multiple-Deliverable Revenue
Arrangements
|
B.
|
Recently
Issued Accounting Pronouncements
(cont’d)
|
4.
|
ASU
2009-13 - Multiple-Deliverable Revenue Arrangements
(cont’d)
|
5.
|
ASU
2009-14 - Certain Revenue Arrangements that Include Software
Elements
|
B.
|
Recently
Issued Accounting Pronouncements
(cont’d)
|
5.
|
ASU
2009-14 - Certain Revenue Arrangements that Include Software Elements
(cont’d)
|
6.
|
Modernization
of Oil and Gas Reporting
|
|
In
December 2008, the SEC published authoritative guidance as the Final Rule
“Modernization of Oil and Gas Reporting.” The new rule permits
the use of new technologies to determine proved reserves if those
technologies have been demonstrated to lead to reliable conclusions about
reserves volumes. The new requirements also will allow
companies to disclose their probable and possible reserves to
investors. In addition, the new disclosure requirements require
companies to, among other things: (a) report the independence
and qualifications of its reserves preparer or auditor; (b) file reports
when a third party is relied upon to prepare reserves estimates or
conducts a reserves audit; and (c) report oil and gas reserves using an
average price based upon the prior 12-month period rather than period-end
prices. The use of the new proved reserve definitions and
average prices in developing the Company’s reserve estimates will affect
future impairment and depletion
calculations.
|
|
The
new discloser requirements are effective for annual reports on Form 10-K
for fiscal years ending on or after December 31, 2009. A
company may not apply the new rules to disclosures in quarterly reports
prior to the first annual report in which the revised disclosures are
required. The Company has not yet determined the impact of this
Final Rule on its disclosures, financial position or results of
operations; the effect of the changes will vary depending on changes in
commodity prices.
|
C.
|
Recently
Adopted Accounting
Pronouncements
|
1.
|
ASC 105-10-65-1 – Transition to the FASB Accounting Standards
Codification and
the Hierarchy of Generally Accepted Accounting Principles (ASC
105-10-65-1)
|
C.
|
Recently
Adopted Accounting Pronouncements
(cont’d)
|
2.
|
ASC
820 -10-65-4 – Fair Value Measurements and
Disclosures
|
|
ASC
820-10-65-4, Fair Value Measurements and Disclosures, required the Company
to apply its provisions to fair value measurements of non-financial assets
and non-financial liabilities that were recognized or disclosed at fair
value in the financial statements on a nonrecurring
basis.
|
|
It
also provided guidance for estimating fair value in accordance with the
guidelines of Fair Value Measurements, when the volume and level of
activity for the asset or liability have significantly
decreased. It also included guidance on identifying
circumstances that indicated a transaction was not orderly. It
also emphasized that even if there had been a significant decrease in the
volume and level of activity for the asset or liability and regardless of
the valuation technique(s) used, the objective of a fair value measurement
remained the same. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction (that is, not a forced liquidation or distressed sale) between
market participants at the measurement date under current market
conditions.
|
|
The
Company adopted ASC 820-10-65-4 during the quarter ended June 30, 2009 but
it did not have a material impact on its balance sheet or statement of
operations.
|
3.
|
ASC
320-10-65-1 Recognition and Presentation of Other-Than-Temporary
Impairments
|
|
ASC
320-10-65-1, Recognition and Presentation of Other-Than-Temporary
Impairments, provided that the objective of an other-than-temporary
impairment analysis under existing U.S. GAAP was to determine whether the
holder of an investment in a debt or equity security for which changes in
fair value were not regularly recognized in earnings (such as securities
classified as held-to-maturity or available-for-sale) should
recognize a loss in earnings when the investment was
impaired. An investment is impaired if the fair value of the
investment is less than its amortized cost basis. It also
amended the other-than-temporary impairment guidance in U.S. GAAP for debt
securities to make the guidance more operational and to improve the
presentation and disclosure of other-than-temporary impairments on debt
and equity securities in the financial statements. It did not
amend existing recognition and measurement guidance related to
other-than-temporary impairments of equity
securities.
|
C.
|
Recently
Adopted Accounting Pronouncements
(cont’d)
|
3.
|
ASC
320-10-65-1 Recognition and Presentation of Other-Than-Temporary
Impairments (cont’d)
|
|
This
guidance was effective for interim and annual reporting periods ending
after June 15, 2009.
|
|
The
Company adopted ASC 320-10-65-1 during the quarter ended June 30, 2009 but
it did not have a material impact on its balance sheet or statement of
operations.
|
4.
|
ASC
825-10-65-1 – Interim Disclosures about Fair Value of Financial
Instruments
|
|
ASC
825-10-65-1, Interim Disclosures about Fair Value of Financial
Instruments, requires disclosures about fair values of financial
instruments for interim reporting periods of publicly traded companies as
well as in annual financial statements, including requiring those
disclosures in summarized financial information at interim reporting
periods.
|
|
This
guidance was effective for interim reporting periods ending after June 15,
2009.
|
|
The
Company adopted ASC 825-10-65-1 during the quarter ended June 30, 2009 but
it did not have a material impact on its balance sheet or statement of
operations.
|
5.
|
ASC
805- Business Combinations and ASC 350 – Intangibles – Goodwill and
Other
|
|
ASC
805 requires most identifiable assets, liabilities, non-controlling
interests, and goodwill acquired in a business combination to be recorded
at “full fair value”. This guidance was effective for periods
beginning on or after December 15,
2008.
|
|
ASC
350 amended the factors that should be considered in developing renewal or
extension assumptions used to determine the useful life of a recognized
intangible asset such as Goodwill and Other Intangible
Assets. ASC 350’s intent is to improve the consistency between
the useful life of a recognized intangible asset and the period of
expected cash flows used to measure the fair value of the asset under the
Business Combination guidance. It was effective for financial
statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal
years.
|
C.
|
Recently
Adopted Accounting Pronouncements
(cont’d)
|
5.
|
ASC
805- Business Combinations and ASC 350 – Intangibles – Goodwill and Other
(cont’d)
|
6.
|
ASC
810-10-65-1 – Non-controlling Interests in Consolidated Financial
Statements
|
7.
|
ASC
815-10-65-1 – Disclosures about Derivative Instruments and Hedging
Activities
|
8.
|
ASC
855-10 – Subsequent Events
|
C.
|
Recently
Adopted Accounting Pronouncements
(cont’d)
|
8.
|
ASC
855-10 – Subsequent Events
(cont’d)
|
9.
|
ASC
470-20 – Accounting for Convertible Debt Instruments That May be Settled
in Cash upon Conversion (Including Partial Cash
Settlement)
|
10.
|
ASC
815-40-15 – Determining Whether an Instrument (or Embedded Feature) is
Indexed to an Entity’s Own
Stock
|
11.
|
ASU
2009-05, Fair Value Measurements and Disclosures - Measuring Liabilities
at Fair Value
|
C.
|
Recently
Adopted Accounting Pronouncements
(cont’d)
|
11.
|
ASU
2009-05, Fair Value Measurements and Disclosures - Measuring Liabilities
at Fair Value (cont’d)
|
12.
|
Retrospective
Accounting Changes in Financial Statements That Are Amended to Correct an
Error
|
A.
|
Private
Placement Offerings
|
A.
|
Private
Placement Offerings (cont’d)
|
B.
|
Initial
Public Offering
|
C.
|
Follow
on Public Offering
|
D.
|
Rights
Offering
|
E.
|
2005
Stock Option Plan
|
E.
|
2005
Stock Option Plan (cont’d)
|
E.
|
2005
Stock Option Plan (cont’d)
|
F.
|
Fair
Value of Warrants and Options
|
E.
|
2005
Stock Option Plan (cont’d)
|
Exercise
|
Number
of
|
Expiration
|
Warrants
or
|
||||||||
price
|
shares
|
Date
|
Options
|
||||||||
To
non-employees
|
|||||||||||
8.25 | 59,000 |
June
16, 2012
|
Options
|
||||||||
To
employees and directors
|
|||||||||||
5.00 | 25,000 |
December
31, 2009
|
Warrants
|
||||||||
5.00 | 66,667 |
December
31, 2010
|
Options
|
||||||||
8.25 | 53,000 |
June
16, 2012
|
Options
|
||||||||
5.60 | 35,000 |
December
31, 2012
|
Options
|
||||||||
7.97 | 50,000 |
December
31, 2014
|
Options
|
||||||||
0.01 | 123,882 |
December
3, 2017
|
Options
|
||||||||
To
investors
|
|||||||||||
7.00 | 607,604 |
January
31, 2012
|
Warrants
|
||||||||
6.11 | * | 1,020,153 |
Number
of
|
Weighted Average
|
|||||||
shares
|
exercise
price
|
|||||||
US$
|
||||||||
Granted
from April 6, 2000 (inception) to December 31, 2007 to:
|
||||||||
Employees,
officers and directors
|
1,884,818 | 1.76 | ||||||
Underwriters
(in connection with IPO)
|
46,621 | 8.75 | ||||||
Private
placement investors and others
|
1,105,492 | 2.84 | ||||||
Expired/Canceled
|
(641,059 | ) | 2.87 | |||||
Exercised
|
(1,984,077 | ) | 1.59 | |||||
Outstanding,
December 31, 2007
|
411,795 | 4.52 | ||||||
Granted
to:
|
||||||||
Investors
in Follow On Public Offering
|
416,404 | 7.00 | ||||||
Expired/Canceled
|
(64,625 | ) | 5.15 | |||||
Outstanding,
December 31, 2008
|
763,574 | 5.81 | ||||||
Granted
to:
|
||||||||
Employees,
officers, directors and consultants
|
202,000 | 6.55 | ||||||
Investors
in Follow On Public Offering
|
249,939 | 7.00 | ||||||
Expired/Canceled
|
(15,000 | ) | 5.60 | |||||
Exercised
|
(180,360 | ) | 6.62 | |||||
Outstanding,
September 30, 2009
|
1,020,153 | 6.11 | ||||||
Exercisable,
September 30, 2009
|
960,153 | 6.07 |
F.
|
Fair
Value of Warrants and Options
(cont’d)
|
Shares
underlying outstanding
|
Shares
underlying outstanding
|
|||||||||||||||||||||||||||||
warrants
and options (nonvested)
|
warrants
and options (all fully vested)
|
|||||||||||||||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||||||||
average
|
Weighted
|
average
|
Weighted
|
|||||||||||||||||||||||||||
remaining
|
Average
|
Range
of
|
remaining
|
Average
|
||||||||||||||||||||||||||
Range
of
|
Number
|
contractual
|
Exercise
|
exercise
|
Number
|
contractual
|
exercise
|
|||||||||||||||||||||||
exercise
price
|
outstanding
|
life
(years)
|
price
|
price
|
Outstanding
|
Life
(years)
|
price
|
|||||||||||||||||||||||
US$
|
US$
|
US$
|
US$
|
|||||||||||||||||||||||||||
0.01 | 10,000 | 8.18 | 0.01 | 0.01 | 113,882 | 8.18 | 0.01 | |||||||||||||||||||||||
- | - | - | - | 5.00 | 25,000 | 0.25 | 5.00 | |||||||||||||||||||||||
- | - | - | - | 5.00 | 66,667 | 1.25 | 5.00 | |||||||||||||||||||||||
- | - | - | - | 5.60 | 35,000 | 3.25 | 5.60 | |||||||||||||||||||||||
7.00 | 607,604 | 2.33 | 7.00 | |||||||||||||||||||||||||||
7.97 | 50,000 | 5.25 | 7.97 | 8.25 | 112,000 | 2.70 | 8.25 | |||||||||||||||||||||||
0.01-7.97 | 60,000 | 6.64 | 0.01-8.25 | 960,153 | 6.07 |
For
the nine month period
|
Period
from April 6,
|
|||||||||||
ended
September 30,
|
2000
(inception) to
|
|||||||||||
2009
|
2008
|
September
30, 2009
|
||||||||||
US$
|
US$
|
US$
|
||||||||||
Weighted-average
fair value of underlying stock at grant date
|
7.71 | - | 3.00 – 8.23 | |||||||||
Dividend
yields
|
- | - | - | |||||||||
Expected
volatility
|
59.0 – 71.0 | % | - | 28.2% - 71.0 | % | |||||||
Risk-free
interest rates
|
1.79 – 2.47 | % | - | 1.79% - 5.15 | % | |||||||
Expected
lives
|
1.5 – 4.81 | - |
1.5
– 5.31 years
|
|||||||||
Weighted-average
grant date fair market
value
|
4.93 | - | 0.76 - 6.43 |
F.
|
Fair
Value of Warrants and Options
(cont’d)
|
For
the nine month period
|
Period
from April 6,
|
|||||||||||
ended
September 30,
|
2000
(inception) to
|
|||||||||||
2009
|
2008
|
September
30, 2009
|
||||||||||
US$
|
US$
|
US$
|
||||||||||
Weighted-average
fair value of underlying stock at grant date
|
8.23 | - | 1.00 – 8.75 | |||||||||
Dividend
yields
|
- | - | - | |||||||||
Expected
volatility
|
71 | % | - | 32.2% - 99.8 | % | |||||||
Risk-free
interest rates
|
1.79 | % | - | 1.79% - 5.50 | % | |||||||
Contractual
lives
|
3.00 | - |
0.56
– 3.17 years
|
|||||||||
Weighted-average
grant date fair market value
|
3.91 | - | 0.68 – 3.91 |
For
the three month period
|
For
the nine month period
|
Period
from
April
6, 2000
(inception)
to
|
||||||||||||||||
ended
September 30
|
ended
September 30
|
September
30
|
||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
||||||||||||||
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
US$
thousands
|
||||||||||||||
$ | 82,000 | $ | 36,000 | $ | 436,000 | $ | (22,000 | ) | $ | 1,544,000 |
G.
|
Compensation
Cost for Warrant and Option Issuances to Employees
(cont’d)
|
US$
thousands
|
||||
October
1 - December 31, 2009
|
58 | |||
For
the year ended December 31, 2010
|
69 | |||
For
the year ended December 31, 2011
|
28 | |||
For
the year ended December 31, 2012
|
2 | |||
157 |
H.
|
Warrant
Descriptions
|
Period of Grant
|
US$
|
Expiration Date
|
||||
A
Warrants
|
January
2001 – December 2001
|
1.00 |
January
31, 2005
|
|||
B
Warrants
|
November
2001 – February 2003
|
1.50 |
January
31, 2005
|
|||
C
Warrants
|
July
2003 – March 2004
|
3.00 |
December
31, 2005
|
|||
$3.00
Warrants
|
June
2004 – August 2004
|
3.00 |
December
31, 2006
|
|||
D
Warrants
|
September
2004 – April 2005
|
4.00 |
December
31, 2006
|
|||
E
Warrants
|
September
2004 – June 2005
|
5.00 |
December
31, 2006
|
|||
F
and FF Warrants
|
October
2005
|
5.00 |
*
December 31, 2008
|
|||
G
Warrants
|
December
2005 – January 2006
|
5.50 |
December
31, 2008
|
|||
H
Warrants
|
December
2006 –May 2007
|
8.75 |
September
26, 2009
|
|||
Unit
Warrants
|
October
2008 – December 2008
|
7.00 |
January
31, 2012
|
I.
|
Gift
Shares
|
I.
|
Gift
Shares (cont’d)
|
A.
|
Environmental
Matters
|
B.
|
Royalty
Commitments
|
C.
|
Long-term
Incentive Plan
|
D.
|
Charitable
Foundations
|
E.
|
Payments
to executives and deferral of
compensation
|
F.
|
Underwriting
Agreement
|
F.
|
Underwriting
Agreement (cont’d)
|
G.
|
Lease
Commitments
|
US$
thousands
|
||||
2009
(October – December)
|
23 | |||
2010
|
58 | |||
2011
(partial amounts due to renewal periods)
|
47 | |||
128 |
H.
|
Contract
with Geophysical Institute of
Israel
|
I.
|
Drilling
Contract
|
J.
|
Settlement
Agreement
|
K.
|
Employment
Agreement with Executive
|
|
·
|
exploration,
development, and drilling plans;
|
|
·
|
future
general and administrative
expenses;
|
|
·
|
future
exploration;
|
|
·
|
future
geophysical and geological data;
|
|
·
|
generation
of additional properties, reserves;
|
|
·
|
new
prospects and drilling locations;
|
|
·
|
future
capital expenditures;
|
|
·
|
sufficiency
of working capital;
|
|
·
|
plans
regarding and ability to raise additional
capital;
|
|
·
|
drilling
plans;
|
|
·
|
timing
or results of any wells;
|
|
·
|
interpretation
and results of seismic surveys or seismic
data;
|
|
·
|
permit,
license and lease rights;
|
|
·
|
participation
of operating partners;
|
|
·
|
legislative
and regulatory initiatives, their potential results and effects;
and
|
|
·
|
any
other statements regarding future operations, financial results,
opportunities, growth, business plans, and
strategies.
|
ITEM
3.
|
QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
|
Not
Applicable
|
ITEM
4 (T).
|
CONTROLS AND
PROCEDURES
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
ITEM
1.A.
|
RISK
FACTORS
|
ITEM
2.
|
UNREGISTERED SALES OF
SECURITIES AND USE OF
PROCEEDS
|
In US$ (000)
|
||||
Underwriting
Commissions
|
$ | 321 | ||
Expenses
Paid to Underwriter
|
193 | |||
Other
expenses as follows:
|
||||
Accounting
Fees and Expenses
|
66 | |||
Legal
Fees and Expenses
|
50 | |||
Printing
Fees and Advertising
|
321 | |||
Listing
Fees (including SEC filing fees)
|
63 | |||
Transfer
and Escrow Agent Fees
|
14 | |||
Other
Expenses
|
6 | |||
TOTAL
EXPENSES
|
$ | 1,034 |
In US$
(000)
|
|||||||
a. |
Preparation
for and drilling of Ma'anit-Rehoboth #2 well
|
$ | 3,624 | ||||
b. |
Exploration
costs
|
$ | 178 | ||||
c. |
Deferred
compensation to officers and directors
|
$ | 361 | (1) | |||
d. |
Regular
compensation to officers
|
$ | 635 | ||||
e. |
Legal,
accounting and professional fees
|
$ | 391 | ||||
f. |
Other
|
$ | 440 | (2) |
(1)
|
Includes
$240,000 of debt conversion by two officers during the unit
offering
|
(2)
|
Includes
$6,000 debt conversion by two vendors in the offering and also includes
refundable VAT (value added tax)
|
In US$
(000)
|
||||
Accounting
Fees and Expenses
|
41 | |||
Legal
Fees and Expenses
|
10 | |||
Printing
Fees and Advertising
|
49 | |||
Listing
Fees (including SEC filing fees)
|
46 | |||
TOTAL
EXPENSES
|
$ | 146 |
In US$
(000)
|
|||||||
a. |
Drilling
of Ma'anit-Rehoboth #2 well
|
$ | 6,587 | ||||
b. |
Preparation
for and drilling of Elijah #3 well
|
$ | 250 | ||||
b. |
Exploration
costs
|
$ | 113 | ||||
c. |
Deferred
compensation to officers
|
$ | 1,436 | ||||
d. |
Temporary
investments
|
$ | 10,254 | (1) | |||
f. |
Working
capital
|
$ | 1,446 |
(1)
|
Balance
in US money market accounts at September 30,
2009
|
ITEM
3.
|
DEFAULTS UPON SENIOR
SECURITIES
|
ITEM
4.
|
SUBMISSION OF MATTERS
TO A VOTE OF SECURITY
HOLDERS
|
ITEM
5.
|
OTHER
INFORMATION
|
ITEM
6.
|
EXHIBITS
|
31.1
|
Certification
of the Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 under the Exchange Act
|
||
31.2
|
Certification
of the Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
||
32.1
|
Certification
of the Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (furnished only).
|
||
32.2
|
Certification
of the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (furnished only).
|
ZION
OIL & GAS, INC.
|
||||
(Registrant)
|
||||
By:
|
/s/
Richard J. Rinberg
|
By:
|
/s/
Sandra F. Green
|
|
Richard
J. Rinberg
Chief
Executive Officer
(Principal
Executive Officer)
|
Sandra
F. Green,
Senior
Vice-President and Chief Financial Officer
(Principal
Financial and Accounting Officer)
|
|||
Date:
|
November
13, 2009
|
Date:
|
November
13, 2009
|