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Zion oil and gas: huge oil discovery and reserves: oil field in the making?

Zion oil and gas: huge oil discovery and reserves: oil field in the making?
London - Canary Wharf; 15:06, 22 May 2022 | Ⓒ Copyright

This TabStocks article takes an in-depth look at the Zion oil and gas share price and what kind of news might be released in the 2022 AGM

So, the end of another week as a Zion oil and gas shareholder and things are looking up!

The Zion oil and gas stock closed 35 cents, today Friday 03 June 2022, up just over 12% on the previous trading day.

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Momentum is building as we approach the Zion oil and gas AGM next week 08 June 2022.

Zion oil and gas news

There’s three possible stages Zion oil and gas could release news around this time; in this season of its AGM.

If Zion has some big news to deliver to its supporters and shareholders, they are likely to release it the day before the AGM or on the day of the AGM.

The other possibility is that they release news on the day after the AGM, if they even have news. I will come on to this.

But assuming they have some news to release, it would create a bigger buzz; that could have a bigger impact on its share price, if they were to publish news the day before the AGM, or shortly before the AGM.

If the market is still open after the AGM, then this would be a good time too.

What kind of news could Zion oil and gas release?

If you’ve read our previous Zion oil and gas articles on TabStocks, you would have a fuller picture about this. You can find that content here.

Given Zion oil and gas are planning to drill another well, it’s clear to me that they are therefore planning to create an oil field.

If I’m correct (and by the way I did call it right regarding Zion wanting to drill another well before they broke the news) then I’m pretty sure they full well know they are onto a winner with MJ-02.

The only thing is, Zion oil and gas did say they would inform the market if they encountered oil; which they didn’t.

However to properly assess an oil encounter, the truth of oil proper is through testing.

Zion wants to avoid a repeat of the lawsuit brought against it a few years ago. This too is one of the reasons I believe they decided to allow the share price to tank on the OTC.

In moving off of the Nasdaq onto the OTC market, Zion is free from the strict regulations on reporting material information.

Being an OTC listed company, Zion oil and gas can concentrate on its operations and not be too worried either about the share price.

The share price in and of itself doesn’t give Zion the funds to use for its project. Unless of course they profit from a rising ZNOG stock price.

What helps Zion’s operations is when loyal investors invest directly through Zion oil and gas. This allows Zion the flexibility to put funds to use for drilling, testing and 3D etc.

The testing is about to begin, therefore at this early stage, Zion are unlikely to announce about oil flow rates etc.

Zion oil and gas are likely to announce in a press release that testing has started; or is about to begin.

But it’s still possible Zion could release news in relation to an oil encounter in one or more zones that have interested them.

As well as this, Zion oil and gas could inform investors if they had drilled sideways and if so, how deep (at what levels: zones) and in how many directions.

The biggest news however is going to concern the reason why Zion oil and gas want to at this pre-testing stage, drill another well.

If there wasn’t any oil in MJ-02, Zion oil and gas wouldn’t be bothering testing its MJ-02 well.

And given that testing is going ahead, clearly and logically there’s oil.

In my view Zion oil and gas have discovered oil in one or more zones of interest within its MJ-02 well.

I believe, Zion oil and gas has had to keep this news top secret with only senior officials being aware within the Israeli Ministry of Energy.

There may also be political reasons why Zion have remained hush hush.

And not just to do with Israeli politics, but politics within the Zion oil and gas company.

Remember, that Zion has to deal with the transition of a new Israeli government whose Energy Minister went along with and adopted the climate change agender.

Zion oil and gas ultimately had its license extended, but for a time its future looked uncertain.

This was a big factor that saw its share price crash to around 10c.

With oil back on the agender post global lockdowns as a needed resource, you don’t hear much about climate change these days.

On top of this, the price of crude oil reached over $120 and is predicted to reach $200 within just a few years.

If Israel can produce as much oil as it does gas then this will be a gamechanger for Israel’s geo-political power in the region and globally.

A huge oil discovery with proven reserves will put Israel on the black gold map; if not at the centre of it.

But for that to happen, Zion oil and gas will have to confirm its finds by drilling another well on its licence which correlates with the 3D data to that of MJ-02.

Of course I’m jumping ahead of myself. We must not get carried away by news of Zion oil and gas wanting to drill another well.

However, I believe they had these intentions long before drilling had completed on its MJ-02 well.

And we’re not even sure whether Zion drilled MJ-01 deeper when they set up their new rig over it. For if they had, they might have encountered oil deeper at MJ-01.

But I’ll suspend belief in such theories at this stage.

Therefore, Zion oil and gas could be way ahead of what they know about their zones of interests, the 3D data etc. Remember that not long after completing 3D testing, Zion sourced a new rig that could drill deeper.

These are the possible types of issues Zion oil and gas could release around its 2022 AGM.

Investors have not had news about any 3D data results, oil encounters, testing of oil samples etc, only that Zion oil and gas intends to drill another well.

If Zion do intend to create an oil field then they would need to put MJ-02 into production before they drill another well in my view.

But for sure, Zion oil and gas knows something most of us don’t about MJ-02, which gives them the confidence to set about getting ready to drill another well.

I did write in my other article that they would be drilling another well before Zion released this news. (All Zion oil and gas articles on TabStocks)

I’m certain Zion oil and gas will be looking to buy another rig too. And by the way, there’s a shortish of rigs post pandemic due to oil supply issues.

Zion oil and gas stock price prediction over 2022 AGM news

We have a Zion oil and gas stock price prediction article you can read.

But around the AGM, if Zion releases some news regarding oil encounter $2 is not off the table.

And depending upon how much information Zion oil and gas release and the manner in which they do so, we could be seeing a $5 ZNOG share price.

Also read our Zion oil and gas top 5 possible outcomes article.

You could watch Coach’s Financial Channel on YouTube, for his latest Zion Oil & Gas (ZNOG) Technical Analysis 06-03-2022

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