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Zion Oil & Gas 1,641 feet is all to play for after hydrocarbon shows

Zion Oil & Gas 1,641 feet is all to play for after hydrocarbon shows
Picture obtained from the Zion Oil & Gas website.

Zion Oil & Gas 1,641 feet is all to play for after hydrocarbon shows

Zion Oil & Gas are keen to test its Megiddo-Jezreel #2 Well In Israel following hydrocarbon shows within a 1,641 feet area.

Within this area Zion Oil & Gas have one main zone of interest and other smaller zones of interest.

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The size of the testing equipment being set up by Zion Oil & Gas leads ZNOG investors to speculate.

Though Zion Oil & Gas say shareholders and those interested in investing in Zion (ZNOG) shares shouldn’t speculate.

Zion’s MJ-01 Well failed after Zion released similar news relating to hydrocarbon shows and following testing.

What is all to play for now is within an area of just over half a kilometre (1,641 feet). Each zone of interest; or layers within this whole area can be around 4 to 15 feet.

The hydrocarbon shows or direct indications of hydrocarbons from Zion’s MJ-02 Well would have been discovered in one or more of the: drilling fluids, cuttings or the cores.

Signs of oil in Zion Oil & Gas share price

There appears to be a correlation of signs in the Zion share price which confirms this discovery.

Zion Oil & Gas released news of their hydrocarbon shows on 23 November 2021.

The ZNOG share price was in decline from the end of October 2020 when it saw highs of $1.74; in some respects due largely to penny stock pumpers.

It’s interesting to note that by and on 03 November 2021 the ZNOG share price was trading at around 13 cents.

It however jumped to 19 cents by 08 November 2021 which was a Monday.

On 09 November 2021 (before any updates from Zion Oil & Gas) the ZNOG share price had risen to an average 25 cents.

From that unusual peak, the ZNOG share price had given back those gains and fell to around 14 cents.

On 23 November 2021 the ZNOG share price was back to 19 cents; the day Zion released news of hydrocarbon shows.

From 08 November 2021 investors had been buying Zion shares; clearly in the knowledge of Zion’s discoveries.

The ZNOG share price rose again and peaked at around 32 cents on 09 December 2021.

In their 23 November 2021 update, Zion Oil & Gas shows a picture (taken on 22 November 2021) with a black sky, bight beams of light from spot lamps on their drilling rig and an Israeli flag.

The black sky; taking a picture at night is unusual for Zion Oil & Gas who normally take pictures during daylight. This could be a sign that showing black represents oil.

Zion Oil & Gas 1,641 feet is all to play for after hydrocarbon shows

Picture obtained from the Zion Oil & Gas website.

In their 11 May 2022 update Zion Oil & Gas used the same picture. I’ve taken the liberty to use that picture in this TabStocks article.

Zion Oil & Gas stated:

“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.”

They discovered other zones of interest other than their main zone of interest.

I’m assuming that Zion’s main zone of interest was as a result of their 3D seismic data which led them to buy a rig that could drill deeper.

In their 11 May 2022 update Zion Oil & Gas stated the following:

“Ongoing operations include well stimulation and DST testing.”

Zion Oil & Gas may know more than they are letting investors know with regards to what they have already discovered.

And there was interesting trading activity pre Zion’s 23 November 2021 update which clearly began some 12 trading days prior to this date.

We are not even sure when the drilling ended proper.

But clearly a few investors were excited enough to have moved the ZNOG share price.

And there is no penny stock pump correlation during this period (that I’m aware of) which is an encouraging sign.

This tells me that only a few investors got in on the action with the knowledge of what Zion Oil & Gas discovered.

That said, the ZNOG share price has not reacted too well since, given that the share price lost most of those gains to 32 cents, falling to around 10 cents since.

However, this was to be expected if most of Zion Oil & Gas investors had not been privy to the news.

Though I’m minded of the fact that around this time, John Brown emailed Zion Oil & Gas investors that we would see oil soon!

The Zion share price recently rose to around 42 cents in early June 2022, but has since traded an average of about 25 cents, with a low dip of 19 cents on 07 June 2022; pre AGM which was held on 08 June 2022.

Since the AGM, the Zion Oil & Gas share price ZNOG (formally ZN) has been positive, peaking at just over 29 cents on 22 June 2022. This is a 10 cents gain since the Zion AGM.

Zion Oil & Gas are yet to confirm that testing has started proper since their last updates: 11 May 2022 and during their 08 June 2022 AGM.

It’s been over 6 weeks and I would expect an update from Zion Oil & Gas by 08 July 2022.

If Zion Oil & Gas are to put their MJ-02 Well into production, in my view they would need to make commercial a minimum of 500 barrels of oil per day.

At todays oil prices, this would mean Zion Oil & Gas could raise about 20 million dollars per year from one oil Well.

Though a high percentage of oil production profits would go directly to the Israeli government.

Nevertheless, if Zion Oil & Gas could tap into a productive layer rich in oil, a few producing oil Wells could raise many millions of dollars annually for the company.

Zion Oil & Gas is applying for a new exploration permit and you can take this one of two ways;

  • Either they are playing for more time if MJ-02 turns out to be dry.
  • Or Zion seek to capitalise on what they already know will turn out to be a winner.

One thing for certain, the ZNOG share price waits for no one.

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