By Zion Oil And Gas Company – Testing Oil Well In Israel $ZNOG
About The Company
Zion Oil & Gas, Inc is an gas and oil onshore exploration company.
The Company holds a license for petroleum exploration in Israel, the Megiddo-Jezreel License (MJL), comprising approximately more than 90,000 acres.
The MJL is onshore, west and south of the Sea of Galilee.
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The Company has not generated any positive revenues despite huge cash and positive potential for growth which makes this an extremely undervalued stock.
Its subsidiaries include Zion Drilling, Inc., which is focused on drilling rig and its related equipment with spare parts and Zion Drilling Services, Inc., which act as the provider for drilling services on contract basis.
Key People
It is important to know the key people as their attitude determines the overall success of the company.
The following information is taken from the most reliable source and should be present as it is.
John Brown
Executive Chairman of the Board
Robert Dunn
Chief Executive Officer, Chief Operating Officer, Director of Operations
William Avery J.D.
President, General Counsel, Director
Michael Croswell Jr., CPA
Chief Financial Officer
Martin van Brauman
Executive Vice President, Senior Vice President, Treasurer, Corporate Secretary, Director
Address
12655 North Central Expressway
Suite 1000
Dallas, TX
75243
United States
Recent Investors View On This $ZNOG
Zion Oil & Gas saw a massive drop in short term in the month of December alone.
As of the last trading day in December, there was short interest totaling of more than 32,000 shares, a drop of nearly 18% from the December 14th total of 40,300 shares.
Based on an average trading volume of 6,970,900 shares, the shorting of this stock is due to the covid-19 pandemic along with oversold levels in technical indicators.
$ZNOG Recent Earnings And Competitors
Zion Oil & Gas, Inc. (OTCMKTS:ZNOG) announced its quarterly earnings results on November, 10th.
The company reported nearly ($0.01) earnings per share (EPS) for the quarter.
Some companies that are competitors to Zion Oil & Gas include GeoPetro Resources (GEOR), Terra Energy & Resource Technologies (TEGR) and Tidelands Oil & Gas (TIDE).
Zion Oil & Gas has a market capitalization of $50 million. The company earns $1 to $5 million in net income (profit) each year on average or ($0.05) on an earnings per share basis.
However recently they had a temporary loss of -$7.5 million.
Recent Stock Movement Analysis
The Zion Oil & Gas Inc stock price fell by more than -0.40% on the last day (Friday, 21st Jan 2022) to $0.13 and has now fallen a week in a row.
During the day the stock fluctuated 12.75% from a day low at $0.12 to a day high of $0.131.
The price has fallen in 9 of the last 12 days and is down by -22.28% for this period.
Volume fell on the last three days along with the stock, which is actually a good sign as volume should follow the stock.
On the last day, the trading volume fell by more than -500 thousand shares and in total, 3.9 million shares were bought and sold for approximately $542.40 thousand.
Given the current short-term trend, the stock is expected to rise 10.12% during the next one month period and, with a 95% probability, hold a price between $0.15 and $0.32 at the end of a two-month period.
Signals From Technical Side
Furthermore, there is a strong buy signal from the 90 day Moving Average Convergence Divergence (MACD).
There’s a little bit of noisy negative signals discovered that may have some influence on the near-term development.
The Zion Oil & Gas Inc stock holds sell signals from a short term basis but long-term moving averages give a more positive forecast for the stock.
Also, there is strong support below and considering the stock is extremely undervalued, I think the stock should rebound soon.
On corrections to the upside, there will be strong immediate resistance from the lines at $0.15 and $0.18. A clear break-up above any of these levels will issue strong buy signals.
A further fall is limited to downside as the bottom pivot is already more or less been found.
Volume fell short along during the last trading day, which technically gives positive signal.
I see this as a best buy at this price given the upside potential will exceed even 1000% in two or three years.
$ZNOG Risk To Reward Ratio
Zion Oil & Gas Inc finds support from an accumulated share of volume at $0.12 and this level is a strong buy and hold opportunity as an upwards spike can be expected from here.
Due to huge reward and less risk for this stock, a stop loss should not be placed in my view.
Profit will be set to at least 3 times the capital as the plan is to 1st take profit and 10 times the capital for maximum take profit.
Our recommended stop-loss: We hold an positive evaluation for this stock. No stop-loss is set.
Analysis Recommendation For $ZNOG
The Zion Oil & Gas Inc stock holds several positive signals from the fundamental side with the company itself having drilling operations in Israel whose site is said to have more oil underground and despite the positive news.
I believe Zion Oil & Gas Inc will perform exceedingly well and maybe a multi-bagger stock.
Therefore, I recommend a strong buy and hold given risk is very low in my view.
Insider Action On This Stock
In the last 150 trades there were 6.2 million shares bought and 520 thousand shares sold.
The last trade was more than 70 days ago by Avery William H who sold nearly five thousand shares.
The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside.
In some cases even big investors from banks might also take some buy positions.
Recent Statement From Zion’s Side (Must Read For Fundamental Analysis)
Statements in this passage that are historical fact including, statements regarding Zion’s operations and the results including testing as well as completion.
Zion’s ability to discover new oil fields and produce oil in commercial method;
Zion’s ability to continue as a going power horse;
Low operational risks in ongoing exploration efforts due to science based backing for the operations; the timing and completion of the Oil production with processing.
The 3-D seismic survey; regulatory approvals already signed for the rig’s operation, and liquidity for shareholders on OTCQX are forward-looking bullish statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995.
These positive statements are based on concrete evidence that are subject to significant known, uncertainties, and other unexplained criteria, many of which are beyond Zion’s control.
These risks could cause Zion’s negative performance in near term but overall Zions operation will continue to function and there is sold growth potential.
Zion can give no promise that the expectations reflected in these recent times will prove to be correct and assumes no responsibility to bullish investors in short-term.
Recently, Zion CEO said “We are thankful for the successful completion of our drilling phase,” “We are eager to move forward with testing immediately based on encouraging hydrocarbon shows.”
This shows there is positivity from CEO which is crucial for company’s profit and this is a great sign to buy shares in this company.
Zion has completed the drilling of the MJ-02 well to a total depth of more than 5000 meters (17,141 feet appx) with a six-inch (6”) open hole in the middle at that depth.
The primary zone of interest contains lots of hydrocarbons
“A full set of detailed and comprehensive tests including neutron-density, sonic, gamma, and resistivity logs, paired with well testing, will commence during the coming weeks.
Based on these logs and analysis, additional zones of interest may be identified and tested” says one spokesman from the company.
They also said that all testing equipment and workers are in Israel, and Zion is working on the required equipment at the well site for the rigorous testing.
Positives
ZNOG has high profile CEO and administration team who are keen to make the most of this energy sector.
The company is worth more than $40 million and also has a good hold of possible oil fields in Israel and an office in USA which makes it a solid company.
The shares are trading at all time low and it seems the price can’t fall further than this.
This is great buying opportunity as shares can skyrocket to at least 1,000% in just 1 or 2 years.
Since the Middle East has more oil reserves and Israel is a country where few companies are investing in this sector, Zion don’t have much competition.
Conclusion
I personally think the Zion Oil and Gas company has only upside potential from now and buying share is the only course of action I would take.
But you should do your own research and seek proper legal and financial advice.
Since this stock has potential to deliver more than a 1,000% return, I see it as true multi bagger penny stock that is likely to perform well in next few years.
I would buy a medium position in this stock and increase the position further in a buy and hold situation.
Keep your eyes on news from $ZNOG and Israeli media sites. Even one positive update will skyrocket this stock to the moon.
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