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Will oil reserves and production news arrive for the $ZNOG faithful?

Will oil reserves and production news arrive for the $ZNOG faithful?

Will oil reserves and production news arrive for the $ZNOG faithful?

Zion oil and gas an American based company drilling in Israel are in the testing stages following months of drilling their MJ2 well.

The company suffered covid-19 related delays and a long delay due to drilling issues and the waiting on parts to arrive from outside of Israel.

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The share price has suffered because of these delays as well as funding issues and the lack of news from the company which has upset many of the long term faithful investors.

On top of all the aforementioned issues, Israel’s new government stated that it would not be granting new onshore drilling and production permits due to environmental concerns related to the climate change agenda.

But it seems this did not effect current licence holders since an extension to drill was granted to Zion oil and gas.

After many years of drilling, and conducting 2D, 3D seismic and lots of drum beating emails from John Brown, the purchase of a new rig that can drill deeper and horizontal, is the long wait for breakthrough news almost over?

The company suffered a major confidence set back during the MJ2 drilling and testing when the news it released was thought by some investors to be misleading.

This led to legal action by some investors, but their case was dismissed by a U.S. court.

However following this, while the new rig was on the way to Israel, Zion ticker $ZN gave up the ghost of easy money and took on the OTC wild west.

The share price stood at a stable 20 cents prior to the OTC move and before drilling commenced on the MJ2 well – which is located on the same site as the MJ1 well – the stock price spiked over a number of days to around $1.74.

In the many months since, the stock price has plummeted to an unstable 15 cents range and finds lows of 13 cents and lower at times.

It’s noteworthy that following completion of the 3D in Israel, on part of its license area, Zion oil and gas sort to purchase a more capable rig which they shipped from Romania along with a crew to help set the new rig up and to drill and also to train less experienced local based Israeli crew.

Of course all the equipment and drilling has cost many millions and with no hopeful signals from Zion save emails from Brown, the core of Zion’s investors based in the bible belt in the U.S. have all but given up hope of a valid meaningful oil encounter let alone reserves or production news.

But could Zion be sitting on some big news it wants to have properly confirmed before releasing?

If so how will the share price react on the OTC given the spreads can be wide and the ride wild moreover if the reddit community Game Stop and weed stock wall street killers join in to pump it.

But this is unlikely given you need to do some homework in order to get to buy this penny stock.

Investors in the UK and based elsewhere using the Trading 212 website and app are restricted in how many shares they can buy.

Currently this is just 1,000 shares and the website advises a sell only.

Some UK based investors have resorted to using Hargreaves Lansdown to buy this OTC stock.

However this broker charge phone call fees to buy and sell as well as other transaction fees.

Last time I checked you could buy $ZNOG through U.S. broker Trade Station.

The bottom line is, Zion need to encounter oil, or have encountered oil and the testing results needs to confirm worthwhile oil reserves and decent production numbers.

Otherwise I find it difficult to see how Zion oil and gas could justify drilling another well or conduct further 3D testing on other areas of its licence.

Ultimately, Zion needs to pull a rabbit soaked in crude out of its 20 year old hopeful hat.

Otherwise it’s in danger of a bitter ending investors may need a decent vacation to recover from all the drama over the many months and for some years.

The share price of ZNOG closed down 4.01% at $0.13 (Thursday 20 January 2022).

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