By Zion Oil & Gas (ZNOG) Water over OIL but will Zion pull it off?
Following the last Zion update 3rd October 2022 TabStocks investigates
So, the Zion Oil & Gas share price crashed from 18 cents to 14 cents on the 3rd of October 2022 following Zion’s operational update.
The bottom line is that Zion need to bypass the water above the zone of interest where they believe the Oil is.
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I’m pretty certain this is not the first time Oil Wells have encountered such issues.
In their update Zion state, they sort advice regarding the issue. This does not surprise me because clearly Zion are not experts when it comes to Oil Well drilling.
In fact, most of their board members do not appear to be Oil experts, not even their CEO.
One little problem and they make a big issue of it. And their updates scare the market of Zion Oil & Gas investors.
On the upside, the update stated the following:
we are encouraged by the results of our recent testing operations
However, no further information was included other than:
particularly with respect to the lower of two prospective zones we perforated near the final drilled depth of the well.
It is pretty clear that Zion’s main zone of interest contains a lot of oil, and they need to bypass the water at higher levels so that max pressure can be gained.
As Zion state:
This lower zone, which is approximately twenty (20) meters in thickness, is our primary zone of interest.
This means that the area is large, some 65 feet. Is there is oil and the pressure strong, the Well could produce at least 10,000 barrels of oil per day.
Zion Oil & Gas are making a mountain out of a molehill with respect to the water issue.
we plan to isolate and neutralize the heavy water influx by procuring a 4 1/2 inch packer and installing it below the heavy water zone and above our primary zone, but we have no assurance this procedure will be successful.
And there is the scare mongering:
but we have no assurance this procedure will be successful.
And also, in their update they state:
and we have no assurance the zone will produce hydrocarbons in commercial quantities or whether the well ultimately will prove to be successful.
probably sowing seeds of doubts to cause the share price to crash so that their friends, the big boys can load up on cheap shares.
You will note that the last PR Zion made was in May 2022 and since then no information as to their new licence application to drill another Well in Israel.
In their 3rd of October 2022 update Zion Oil & Gas state:
We will continue to provide updates in accordance with good corporate practices and all legal requirements when we have definitive, material news.
I get the impression that Zion are planning a return to the NASDAQ next year after they declare MJ02 commercial. Zion’s primary zone of interest clearly is rich in crude petroleum.
Zion Oil & Gas (ZNOG) Water over OIL but will Zion pull it off?
Well, Zion Oil & Gas should be able to, given they brought in experts from overseas to help them conduct testing and that the issue they face now is common in Oil testing.
We should be reading a Zion Oil & Gas PR around the first week of November 2022 in my view.
At the time of writing, the Zion Oil & Gas share price (ZNOG) was $0.14
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