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Something about Zion and Gas
Zion Oil and Gas is an exploration company in Israel and is currently based in the US. The company, whose shares are listed on the OTCQX Market ( trading symbol ZNOG ) and licensed to explore for oil and gas on the Megiddo-Jezreel onshore petroleum.
With the vision of John M. Brown – Founder And Executive Board Chairman: “ the calling to render assistance to the Jewish people and Nation of Israel, and to aid them in the Restoration of the Land by providing the oil and gas necessary to help the People of Israel maintain their political and economic independence. “
And a very promising company !!
Information with many BENEFITS
As updated by Zion oil and gas: ” Megiddo-Jezreel license has been extended for another eight months.” Information has been updated on 31st November 2021. This is a good thing for Zion while Israel’s Energy Minister Karin Elharrar announced that it will stop licensing onshore and offshore oil and gas prospecting and exploration until at least the end of 2022.
Therefore, the fact that Zion’s competitors in oil and gas exploration do not appear made Zion possess a huge potential in oil and gas exploration and production in the Megiddo-Jezreel area.
Besides, The Middle East region is the place to store 61.5% of the world’s oil reserves, which contain 742 billion barrels of oil (proven) combined with the completion of 4 phases of drilling by Zion Company in the area MJ2 (Megiddo-Jezreel #2) and has been moving towards with testing immediate based on encouraging hydrocarbon shows. If oil can be discovered, this will definitely be a big step for Zion in exploring oil and gas in the MJ2 area.
According to IEA (International Energy Agency) statistics, the fact that OPEC, OPEC + and Russia groups are currently producing 400,000 barrels/month makes oil and gas supply dripping. Especially now that countries around the world are in a phase ” The new normal “started an economic recovery causing the demand for oil and gas to skyrocket. And when supply is weaker than demand, it will push oil prices higher. Extremely profitable for Zion’s revenue.
Another good news, the recent tension between Russia and Western countries over Ukraine may disrupt oil and gas supplies to the European region, which will have a significant impact on oil prices, in the next few months if the tension is not eased. Up to this point, most oil and gas stocks have generally benefited from higher oil prices due to concerns about oil and gas supplies, and this has been extremely beneficial for Zion’s stock price.
Zion’s DISADVANTAGE !!
Of course, Zion’s downsides are also many, the thing that concerns me most about Zion’s prospects is: “Can they find the oil yet? “ or ” have they found the oil? “. Perhaps not only me but also many other shareholders or maybe even the board of directors expect it.
After going through 4 stages of drilling in well MJ2 ( Megiddo-Jezreel #2 ) according to official sources from Zion, it seems that they have not found oil in the MJ2 area. And they also announced: ” After reviewing these logs, our third-party engineering group has recommended bringing in specialized completion liners for the next steps and for the indicated zones of potential production.” They also added pipelines and ancillary items and are in the process of being transported to serve the research and exploration of the entire MJ2 well area.
This is quite possibly the very sad news of Zion…
However, the geology of the MJ2 area has always been expected by gas prospectors to be rich in oil and gas, but Megiddo-Jezreel is the place to a lot of deep-seated rocks. So The Zion company still hasn’t been able to find oil, which is understandable. Although the potential oil and gas production is abundant, drilling and exploration in a place with rocky geology is also a big challenge.
Proof of that is that Zion had to purchase a lot of additional auxiliary items, tools for the exploration of the MJ2 well. And they themselves drilled the MJ2 well to a depth of 5000m (17,141 feet appx ) with a six-inch (6″) opening in the middle of that depth.
For the same reasons, there was a time when Zion’s stock price dropped to a low of $0.1147 on 3rd November 2021, but there was a strong recovery when the stock price peaked at $0.32 on 10th December 202. Until now the stock price is at 0.1330 dollars on the 28th January 2022 trading session.
Moreover, the company’s profit was also seriously affected when it had to spend a lot of money to buy additional accessories. At one point they had a temporary loss of $7.5 million, although the company’s annual revenue typically averages between $1 million – $5 million.
Expectations about Zion Oil and Gas company
The key question: “Will they produce oil and find oil in the MJ2 area?? “
A very important question at this time for Zion when the expectation of one of the companies licensed to explore oil and gas in the area of Israel nation when the country is in the process of focusing on energy regenerative.
If they can find oil and gas under the hard rock layers of the Megiddo-Jezreel area and produce it, this will be a huge TURNING POINT for both Zion and Israel.
According to statistics on imported commodities from Israel. Fuel, energy, and petroleum products reached $3.29 billion, behind only investment groups, raw materials, and consumer commodities. This proves that although Israel will focus its resources on renewable energy, perhaps oil and gas energy will still be the main source of energy. I forecast at least oil and gas energy will remain an important source of energy for at least another 3-5 years.
So, right now, the expectations of long-term investors and shareholders are high, but the question is often asked: “If they find oil and exploit it, produce it, will there be enough oil and gas energy for Israel? “
I would expect Zion to be able to produce and capture 5% of the Israeli oil and gas market as a big step forward. Especially when the demand for transportation has increased recently and the reopening of the visitors to welcome tourists from the border as long as they have had enough vaccines and do not come from “red” epidemic areas. Everything is going in Zion’s favor, from the eight-month extension to fully explore the MJ2 field to the useful information on oil prices and the still-evolving demand for oil and gas. Zion let’s break out !!
But, we can’t just keep expecting, we also have to prepare for the case: “ if they can’t produce because they did not find oil or did find oil but not enough or another reason why they can’t produce then what is the future for Zion? “
They NEED to find the oil or they could have an undesirable outcome. Or they MUST move to other areas within the Megiddo-Jezreel region in search of better oil reserves.
Zion stock price analysis
Is an established company in the OTCQX Market with a market capitalization (as of now) of $51.41 million. In the past, the company has reached as high as 17.46 dollars per share. But now the value of the stock has plummeted, at times reaching a record low of only $ 0.11 per share. Although there are also recovery sessions from the market, in general, the price of Zion is moving sideways in the price range of 0.16 – 0.13 dollars per share.
But even though the stock price is undervalued, the stock’s volume is still good when the average trading volume in 3 months reaches 4,116,443 shares.
According to technical analysis data from Yahoo. Finance, Zion stocks have all reached a volume of more than 2 million shares per day in recent times, while in past time the volume was extremely low. I predict that Zion stock will go higher than it is now. It will probably return to the price range of $0.75 to $1 per share.
So I suggest you buy Zion stock right now before the stock returns to the $0.75 to $1 range or beyond reaching the true value of the stock.
Conclusion about Zion
With a lot of positive news from the world such as: rising oil and gas prices, increasing demand for oil and gas and energy… and then the company’s own prospects for exploitation and exploration sources. oil and gas in the area of MJ2 (Megiddo-Jezreel) where there is potential for huge oil and gas reserves.
The company’s position will be greatly enhanced if they can find oil and produce it, but it will happen soon and I believe it will.
But we still need to watch out in case it doesn’t happen this year. You can buy at the current price range around 50% of your bankroll (the amount in total you intend to set aside to buy Zion) but you should keep 50% cash in case of situations becomes worse and the price drops further.
But, ultimately the decision is still up to you, the right time to buy or not to buy is yours.
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