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New Well license sign of 3D success for Zion Oil & Gas in 2022
This TabStocks Article explores the reasons why a new oil Well license could be a good sign for Zion’s success of producing oil.
With oil testing news anticipated in the first week of August from Zion Oil & Gas, all eyes are on the PR section of Zion’s website.
One of the major expected Press Releases from Zion relates to their application to drill another Well in Israel on their license area.
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This was hinted a few months back by the Zion Oil & Gas CEO, who said they would be looking to explore in other areas for oil.
This is not to say that the current Well Zion are testing (MJ02) does not have oil. In fact, on balance, you can take it that the new drilling application is a positive sign in relation to its current oil testing program.
Zion Oil & Gas have not updated the market much about what – if anything – they discovered at the deeper levels of their drilling operations on its MJ02 Well.
Yet the testing operations appear to be big.
Zion Oil & Gas are bringing in (has already brought in) some expert oil players, from other countries including the US and Canada.
Zion Oil & Gas have a number of zones of interest within the deeper area level they completed the drilling of.
Of these zones, Zion will have a main, ‘major target zone’, that relates to a layer of rock that could very well be rich in oil.
Zion were optimistic enough to buy a rig that could drill deeper and conducted extensive 3D testing on much of their license area, as well of course over their current site.
The other zones of interest point to a good sign that Zion could be on to a winner with this MJ02 Well.
It would be a bold bluff to apply for another permit to drill another Well, at this early stage of its current testing, if it turned out that there was no oil from the MJ02 Well.
John Brown, Zion Oil & Gas founder had hinted on a number of occasions, recently too, that he believes we would see oil soon!
Whether Zion Oil & Gas can end up producing oil from MJ02, that would no doubt resurrect the ZNOG share price remains to be seen.
In my mind, at this stage, there has to be oil in order to justify a further drilling license and the key to oil discovery is within the 3D data that gives a higher probability of oil discovery and of a commercially viable oil Well.
At the time of writing the ZNOG share price was trading $0.22 down about 9% from its 25 cents high seen in early trading. (update: has since recovered)
It is a big crash in one day given it climbed from 22 cents from 27 cents. Not sure the reason for the crash; maybe a tree shake given no news from Zion. 22 cents is in my view a good entry if you believe good news will follow.
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