This article investigates the top 5 possible outcomes for Zion and Gas. And how each could affect the ZNOG share price
Our range of writers, who have been following Zion Oil and Gas stock have teamed up to share their views on the possible near or distant future of Zion Oil and Gas.
TabStocks have selected the best and most diverse views about Zion Oil and Gas. Some views are pessimistic and some optimistic.
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Thus the focus of this article concentrates on facts before any views expressed by the private investors of Zion Oil and Gas.
Zion Oil and Gas are in the process of developing an oil field
For this to be so, investors would need more details from Zion Oil and Gas. For Zion to be set on the path of trying to make a number of oil wells commercial, there needs to be proven oil reserves.
It is a big move to release news, as Zion has, that it already intends to seek permission to drill another well on its license area. It is likely that Zion will drill its next well in an area of high potential oil reserves.
It maybe the case that Zion conducts further 3D testing. Though I am sure that the data Zion gathered thus far from their 3D testing has shown high potential of oil resources.
Drilling another well shortly following testing for oil at Zion’s MJ-02 well, will require funding for sure. The current testing program (currently being set up) is likely to take a few months to complete.
At some point from now, Zion needs to tempt investors into digging deep into their pockets to keep their dreams alive. Now, it maybe that Zion have already encountered oil in a number of zones that had been of interest.
But to fulfil John Brown’s vision and him claiming to hear from God, Zion needs to produce oil. If it can’t then Zion’s investor base will be let down.
Zion needs to release some big news that will not leave doubts in the minds of its investors. If Zion cannot do this at the next 2022 AGM, then ZNOG investors are unlikely to put up the money.
Given the timescales, no testing results are likely before the AGM. Items are still on the way to the site in Israel. It would be pushing it to think that Zion good set up testing so fast and produce some first good news.
Rather any news of oil production or oil finds are likely to follow around 8 weeks from now. Begs the question thus, what can Zion give its investors that would lead them to regain confidence in Zion Oil and Gas?
In my view, the only conceivable good news Zion Oil and Gas could deliver is news of oil encounters in their zones of interest. Zion have already reported that the testing is in relation to oil production and not to test for oil encounters.
This leads be to believe oil has already been encountered. Zion may have not needed to report any oil discoveries at the time of finding oil.
Zion Oil and Gas is trading on the OTC market. The rules of making reports are different on the OTC to that which is expected on the NASDAQ.
On top of this, their could be political reasons why Zion could not announce oil encounters. Notwithstanding, Zion already said that they want to be sure of any oil encounters by testing first before reporting news to investors.
Also, in holding back information Zion avoids possible lawsuits related to misleading information. Indeed Zion was plagued with this following releasing news of its MJ-01 well. This means that Zion’s investors are unlikely to be fed news about MJ-02 oil encounters, unless Zion are preparing to release big news on the day of the AGM.
As I wrote, with no big news at this stage, Zion will struggle to raise funds. But it might be banking on releasing news following testing that would then secure its future. Zion are after all unlikely to begin drilling another well before the end of testing MJ-02.
The most realistic scenario would be that Zion release news about oil encounters and oil production at the end of testing MJ-02. And then raise funds.
After which, Zion will then put MJ-02 into oil and or gas production while another team set off to drill a second well with its rig that can drill deeper.
Though regarding its oil rig, if Zion intends on drilling further wells beyond the one they are planning to drill which they announced this week, they are going to need another rig. I thus suspect, Zion plans to buy another rig.
If Zion Oil and Gas turns out to be a success and exceeds the expectations of most of its private investors (even its most sceptical investors), it will have to be making big plans and this may include drilling multiple wells.
The final results will unfold if Zion has Oil and or Gas, and this narrative could see Zion acting swiftly to put each of their wells into commercial production.
Zion Oil and Gas are taken over by a bigger oil player
This would follow genuine good news probably during the process of outcome #1.
Zion oil and gas are keeping the Ponzi going
There is no oil but Zion Oil and Gas will continue drilling other wells to give hope to its investors while profiting from the management of its futile efforts.
If Zion can raise funds, they could reverse split the stock, but they would need to somehow release some vague, yet believable news investor’s would buy.
I can’t think of what such news could be save that; at best, that they encountered oil, but their 3D suggests more oil in another location?
Though investors would then argue that Zion should have drilled in that better potential location first, before drilling MJ-02.
However, Zion may then go on to argue that Zion did not have that 3D data before deciding to drill MJ-02.
Yet MJ-02 was based on the 3D data and signs from MJ-01 that Zion Oil and Gas decided to go ahead and buy a rig that could drill deeper.
And Zion wasted no time in doing that.
But Ponzi schemes normally create situations to give hope to investors. Because if the activities fade so too does interest and hope in future riches.
MJ-O2 has some oil but not enough to be commercially viable
This could be the reason Zion Oil and Gas have announced the drilling of another well. Because they know MJ-02 will end in failure.
This could lead to the end of Zion Oil and Gas even before another well is drilled. And unless Zion shows proper, genuine reason to have hope, investors are likely to steer clear of ZNOG.
There is oil but Zion are withholding information to wind-up the company
In this outcome, another oil player buys the leftovers including all equipment and later discovers oil. If Zion winds down instead of winding up, the share price on the OTC is likely to fall to sub 1 cent.
Therefore new players will be able to pick up tonnes of cheap shares. For Zion to pull this off, they would have to be totally corrupt and of course fully in on it.
Outcomes #1 and #5 are good for investors, i.e. there is oil, but investors might end up losing out if #5 occurred.
On the other hand, if the shares continued trading, only the bravest and or the most faithful Zion Oil and Gas investors may buy more shares in a sub 1 cent territory.
Outcome #2 is a great outcome and would follow outcome #1 at some stage.
Outcome #3 is a bad outcome, save that if Zion can deliver enough hope, it might be able to raise enough money to continue with it’s operations.
And there is always the hope of a high rising pump at some point, fuelled by well-known penny stock pumpers and dumpers, who have many loyal followers.
Though this is not guaranteed to occur. And the pump and dump merchant would need to have many thousands of fellow string along pumper and dumpers.
Timothy Sykes has over 310,000 followers on Twitter, and he has tweeted about ZNOG in the past which led to a pump to $1.74 which in turn led to a slow dump to 10 cents. Search Tim’s twitter account tweets, and you’ll discover the correlation reason for the share price rise.
The buying of a rig and it being on its way to Israel contributed to the share price rise. But studying the dates of the $1.74 rise the timeframes connected to this driven spike, was closely related to a pump.
Outcome #4 would feel like outcome #3 but hope would be kept alive for the fact the Zion have been honestly trying to discover oil enough for production.
Still, with outcome #4, Zion would still need further funding, and raising it may prove difficult which could lead to closure for all parties, including Zion’s BOD and its operational arm.
If you analyse the possible outcomes and follow developments closely you might be able to gauge what outcome is becoming the dominant one.
In this respect, you will be able to invest at the right time or avoid investing at all. And then there are those of you who are day traders and swing traders.
Traders may stand to make the most out of the share price actions that are subject to the unfolding direction of Zion Oil and Gas.
It is of course likely that short-sellers have had their fair share of profits trading ZNOG based on clever observations.
Certainly, at this present time, the share price of Zion Oil and Gas is rising and this seems to be based on the optimism of its private investors.
There has been some big buys from the big boys, but at this stage, not in the numbers you would expect, if the big boys had wind of some major news before the rest of us found out.
So far, Zion Oil and Gas has turned out to be a company about the discovery of its management and operational moves rather than about discovery of oil and or of gas.
Some of our Zion Oil and Gas writers have some long positions in ZNOG. And plan to hold onto their shares. I’m informed their buy-ins range from 12 cents to 67 cents.
Their target sell price for some of their Zion shares range between $2 to $10.
Some of this may seem difficult to understand, some of it not, but these areas have to be explored given the nature of this OTC penny stock.
As for the ultimate outcome, only time will tell.
The ZNOG share price closed 25 cents 12 May 2022.
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