At December 31, 2019, we had approximately $4,845
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Posted On: 03/28/2020 1:30:04 AM
At December 31, 2019, we had approximately $4,845,000 in cash and cash equivalents compared to $2,791,000 at December 31, 2018. Our working capital (current assets minus current liabilities) was $5,012,000 at December 31, 2019 and $537,000 at December 31, 2018. The derivative liability at December 31, 2019 was $129,000, and this non-cash liability negatively impacts the working capital figure. Our working capital balances, exclusive of the non-cash derivative liability amounts, were $5,141,000 at December 31, 2019 and $882,000 at December 31, 2018.
As of December 31, 2019, we provided bank guarantees to various governmental bodies (approximately $1,011,000) and others (approximately $87,000) in respect of our drilling operation in the aggregate amount of approximately $1,098,000. The (cash) funds backing these guarantees are held in restricted interest-bearing accounts and are reported on the Company’s balance sheets as fixed short-term bank deposits restricted, and fixed long-term bank deposits restricted.
During the year ended December 31, 2019, cash used in operating activities totalled $5,809,000. Cash provided by financing activities during the year ended December 31, 2019 was $14,228,000 and is primarily attributable to proceeds received from the Dividend Reinvestment and Stock Purchase Plan (the “DSPP” or “Plan”). Net cash used in investing activities such as unproved oil and gas properties, and other assets was $6,609,000 for the year ended December 31, 2019.
Accounting standards require management to evaluate our ability to continue as a going concern for a period of one year subsequent to the date of the filing of this Form 10-K. We expect to incur additional significant expenditures to further our exploration and development programs. While we raised approximately $5,000,000 during the period January 1, 2020 through March 3, 2020, we will need to raise additional funds in order to continue our exploration and development activities in our license area. Additionally, we estimate that, when we are not actively drilling a well, our expenditures are approximately $500,000 per month excluding exploratory operational activities. However, when we are actively drilling a well, we estimate an additional minimum expenditure of approximately $2,500,000 per month. Zion expects that during a period of active seismic data acquisition the expenditures to be approximately $1,500,000 to $2,500,000.
As of December 31, 2019, we provided bank guarantees to various governmental bodies (approximately $1,011,000) and others (approximately $87,000) in respect of our drilling operation in the aggregate amount of approximately $1,098,000. The (cash) funds backing these guarantees are held in restricted interest-bearing accounts and are reported on the Company’s balance sheets as fixed short-term bank deposits restricted, and fixed long-term bank deposits restricted.
During the year ended December 31, 2019, cash used in operating activities totalled $5,809,000. Cash provided by financing activities during the year ended December 31, 2019 was $14,228,000 and is primarily attributable to proceeds received from the Dividend Reinvestment and Stock Purchase Plan (the “DSPP” or “Plan”). Net cash used in investing activities such as unproved oil and gas properties, and other assets was $6,609,000 for the year ended December 31, 2019.
Accounting standards require management to evaluate our ability to continue as a going concern for a period of one year subsequent to the date of the filing of this Form 10-K. We expect to incur additional significant expenditures to further our exploration and development programs. While we raised approximately $5,000,000 during the period January 1, 2020 through March 3, 2020, we will need to raise additional funds in order to continue our exploration and development activities in our license area. Additionally, we estimate that, when we are not actively drilling a well, our expenditures are approximately $500,000 per month excluding exploratory operational activities. However, when we are actively drilling a well, we estimate an additional minimum expenditure of approximately $2,500,000 per month. Zion expects that during a period of active seismic data acquisition the expenditures to be approximately $1,500,000 to $2,500,000.
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