Zion Oil & Gas, Inc ZNOG the true reason why they are waiting

Zion Oil & Gas, Inc ZNOG the true reason why they are waiting

Zion Oil & Gas, Inc ZNOG the true reason why they are waiting to declare what they discovered is political.

Why did  Zion Oil & Gas buy a better rig, one that could drill deeper if there was no oil to produce in MJ02. Investors and traders in Zion had hedge their bets on the hope that 3D results indicated large reserves.

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But upon completion of the MJ02 well (which was drilled on the same site as the failed MJ01) Zion Oil & Gas declared it not viable.

Then they returned to MJ01 stating that they want to revisit upper levels again in case they had missed something.

Zion Oil & Gas already had declared that their findings, the samples taken from MJ01 was negative for oil production. So this has left ZNOG investors and traders baffled.

We know that during the period Zion Oil & Gas bought the rig and drilled the well there was a new anti onshore oil and gas government put in place.

If Zion Oil & Gas declared a major find in its MJ02 well, there was no guarantee that they would have been granted a production permit.

Once again the government in Israel has changed though there is still uncertainty whether Israel is still anti onshore oil and gas production or whether it is pro onshore oil production.

A number of western governments have reduced or stopped onshore oil and gas production because of the green agenda which is backed by the big banks.

The big banks call the shots and have caused energy and food prices to rise. At the same time they are making billions of dollars from arms exports.

Zion Oil & Gas are navigating tricky seas with Israeli politics and geo political policies that affect many countries.

There is no doubt that there is oil in Israel. Indeed oil is produced onshore in small quantities. Whether there is large amounts of oil at deeper or higher levels onshore is yet to be known proper.

I believe Zion Oil & Gas know more than they are letting on and their strange behaviour leads me to believe they are playing for time.

I believe Zion are waiting on the green lights to produce proper. If I am correct then I would expect Zion to announce some major news. When? I do not know.

Zion Oil & Gas, Inc ZNOG the true reason why they are waiting to declare what they discovered is political.

If it was not politics interfering in Zion’s quest for onshore oil then I do not see any other reason.

Zion Oil & Gas, Inc ZNOG have a really large area in which to explore for onshore oil but has chosen to stick to one site. They have explored the upper levels from two wells now as well as deeper levels.

I did notice a sharp rise in the ZNOG share price when they were drilling through the upper levels of MJ02 and not so much at the deeper levels. This might be a telling sign that there is oil at the upper levels.

They did also spend a considerable amount of time at the upper levels. And had during this period begun to install the mother of all onshore valves. This would indicate huge reserves which they tried to keep secret.

Judging from the ZNOG share price crash to 5 cents they certainly succeeded.

Zion Oil & Gas, Inc ZNOG revisiting MJ01 might be to cross reference their MJO2 finding at the upper levels. Zion’s investors and traders are none the wiser as to whether Zion are drilling sideways at the upper levels.

Their new rig has the power in which to do so, and as a guess I would say this is what they are up to.

When you look at the geology of the area, considering the finds some 20 miles to the north at higher ground, you can conclude that where Zion Oil & Gas are located it makes sense that oil should be at upper levels and not deeper.

Zion Oil & Gas are too far away from the sea (which is in the west) where large gas reserves have been discovered to justify there being oil at deeper levels where they are exploring for oil in the east of the country.

It thus makes sense that closer to the sea, onshore drilling at deeper levels would likely encounter large amounts of oil and the further east you go, oil reserves would be discovered at higher levels.

It’s fair to say that if there is onshore oil where Zion are based now, that they pretty much screwed up the drilling and testing of MJ01. Therefore if I am correct then all is not lost.

My best guess at this stage is that their plan is to drill sideways MJ01 and may revisit MJ02 to link up the creation of an oil field proper.

If Zion Oil & Gas did come across a lot of oil at upper levels of MJ02 and are keeping their cards close to their chest due to political reasons.

Then only time will tell if they can get it right from now on in respect of further exploration at their current site.

Beyond this, I cannot speculate further because I do not know what Zion Oil & Gas know and what their plans are for the future oil and gas exploration and possible oil production.

Is now the time to raid the penny jar and buy more ZNOG stock?

Some will say stay well away. Others might say if you do not speculate you can’t accumulate.

At this stage Zion Oil & Gas stock seems like a shot in the dark of a gamble. At just below 10 cents (at the time of writing) those looking to lower their average might well be considering to increase their holdings in ZNOG stock.

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