By Is Israel planning to build an oil pipeline for Zion oil and gas?
There appears to be upbeat activity and a buzz building as Zion oil and gas prepares to test their MJ-02 well for potential oil production.
All the big shots are visiting the M2-02 well, and drill site. Zion’s technical staff are arriving from the U.S. and Canada. Inspections, and a downhole run will take place for the final completion phase.
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There seems to exist a lot of positivity despite the low share price. However, since the last update on Thursday 07 April 2022, the ZNOG share price rose from 11 cents to 13 cents (U.S. [$] dollar)
Zion’s CEO will meet with Israeli government and local municipalities.
Zion always believed that there was oil in the area they had drilled MJ-01, but that it was/is down a lot deeper. After conducting 3D scanning, Zion bought a rig that could drill deeper as well as sideways. Though Zion have not released any information regarding sideways drilling or about ‘the zones of interest’.
No information was released as to the results of the 3D, but Zion have always seemed confident about discovering oil in good enough numbers for production.
It’s easy to state that Zion oil and gas is, a waste of time and, a penny stock that investors should steer well clear of.
The company has been around for 20 plus years and have not produced a saleable drop of oil.
Most of Zion’s investors are bible belt, Israel supporting Christians. Zion’s Chairman, John Brown has been instrumental in beating the drums of Zion oil and gas to raise funds for oil exploration.
Nevertheless, whether there is oil or not (so far not: so far as investors are aware) Brown and his mates have done very well (money wise) thank you very much.
They have all become rich, very rich and their salaries have continued to increase even though the share price has been falling from over $5 to lows of 10 cents. It is one massive share price crash, albeit over the 3 years it has taken to reach rock bottom.
Whether Zion oil and gas actually encounter oil or not, and enough oil for production will not really bother the likes of Brown, the CEO nor all of the BOD and senior management.
Whatever happens, they are getting rich from the funds investors pump into Zion oil and gas in hope that Zion will deliver some decent reliable news. And thus far big investors have kept away. The share price is a good indicator concerning any oil encounter and in what quantities.
In the unlikely event that Zion do discover enough oil to put into production from their MJ-02 well, no doubt they will want to drill more wells in the area. And this is what they have been hinting at since their last AGM.
But to raise enough money to drill further wells will require extremely excellent news relating to their MJ-02 well. Without such news, the game could be up for Zion oil and gas by the end of 2022.
Given road tankers can carry around 200 barrels of oil, and a healthy well could produce 10,000 barrels of oil per day, it thus makes sense to build an oil pipeline from the drilling site (and general area where Zion may drill further wells) to the oil refinery.
Maybe the meetings Zion CEO is going to have with the Israeli government involves a proposed oil pipeline?
An oil pipeline will mean x50 road tanker trips will not be needed per well each day. If Zion are planning to drill more wells, then an oil pipeline will save hundreds of daily road trips by road oil tankers.
It’s only about 20 miles from MJ-02 to the Bazan oil refinery. If there is oil from the MJ-02 well in large quantities, i.e. 5,000 to 10,000 barrels of oil per day, and Zion plan to drill more wells in the area, then an oil pipeline will be needed.
I do not have information that there are plans for an oil pipeline to be built to serve oil Zion might produce to the refinery in Bazan. It’s just a hunch I have.
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