Zion oil and gas encountered hydrocarbons in Israel

Zion oil and gas encountered hydrocarbons in Israel

But how real of a chance is there that Zion can produce oil from its MJ-02 well?

(OTCQX: ZNOG)

Zion Oil & Gas, a public company traded on OTCQX Best Market, explores for oil and gas onshore in Israel on their 99,000-acre Megiddo-Jezreel license area.

Takeaway of points below:

• Hydrocarbons have been encountered
• Zion have plans to conduct further drilling (Zion didn’t state in what location/s)
• Potential production has been indicated
• Zion struggles to raise funds
• Zion preparing to test MJ-02 well.
• Zion planning to meet with Israeli government and local municipalities.

Handy main points in the timeline of relevant Zion oil and gas events: (author’s comments in bold)

Megiddo-Jezreel #2 well (MJ-02)

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01 February 2021 PR

• Zion completes first drilling section;
• 22-inch diameter hole;
• 3,000 feet
• Unit program; Zion “still need investor support”;
• 01 Feb to 17 March, $250 of shares with x25 $1 warrants;
• (share price on 01 February 2021 was around 70 cents)
• At the time investors complained that the $1 warrant price was too high given they could buy shares at 70 cents;
• Share price rose to around 84 cents on 15 February 2021, and to date (24 March 2022 that was the highest the share price reached, as it fell to around 10/11 cents in February 2022)
• exercisable for two years (May 16, 2021, to May 16, 2023)

12 April 2021 PR

• completed drilling of second section;
• at halfway point
• 17 ½ inch section drilled
• lateral drilling planned
• new Unit Program to help fund Zion’s 2021 exploration program;
• 12 April to 12 May unit program; to raise $2.5M;
• each unit $250 of shares with x50 / 25 cents warrants;
• (share price on 12 April was around 59 cents)
• It’s worth noting, Zion doubled the number of warrants and more than halved the price from the then current share price, as if they knew the share price was going to tank due to their struggle to raise funds and no big investors buying. See Article for more information.
• warrants exercisable for two years (June 11, 2021, to June 12, 2023)

11 November 2021 UPDATE

• drilling continues;
• will be drilling MJ-02 well a lot deeper than MJ-01 was drilled
• currently drilling fourth and final section of well;
• the section contains multiple areas of potential interest
• well testing equipment on location;
• testing crew’s visas issued by the authorities
• testing program submitted to Energy Ministry;
• testing should commence this quarter

23 November 2021 UPDATE & [PR]

• drilling completed
• total depth 18,141 feet
• [six-inch (6”) open hole at that depth]
• hydrocarbons encountered; in primary zone of interest; and
• additional zones of interest maybe identified and tested
• Testing equipment in the process of being assembled

30 November 2021 UPDATE

• Megiddo-Jezreel license extended for eight months; to test MJ-02 well

10 January 2022 UPDATE

• Zion completed logging operations
• specialized completion liners ordered; due to;
• there being zones of potential production
• testing equipment and testing crew on the way

16 February 2022 UPDATE

• Zion preparing to continue developing and testing the MJ-02 well
• services for completing the well, along with enhancement and reservoir testing, have been secured
• Zion using leading Petro physicists and stimulation experts in the United States to plan the next phase of the operation
• Zion has manufacturing and logistical delays;
• Zion plans to resume operations in quarter one; first step is to;
• gain re-certifications and inspection of the rig;
• Zion will upgrade critical systems;
• Zion plans to conduct enhanced drilling operations in the future.
• enhancement and reservoir testing phase will be conducted by Zion’s crew.

07 APRIL 2022 UPDATE

• Zion oil and gas are preparing to test MJ-02 well for oil production.
• Technical staff arriving from U.S.A and Canada.
• Inspections and a downhole run will take place for the final completion phase.
• Zion CEO will meet with Israeli government and local municipalities.

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