Zion Oil & Gas Inc (ZNOG)

[geopressure]

A merger would HURT shareholders... & is not a reasonable scenario...

As we have discussed earlier, ZN's share price & market-cap are significantly inflated due to promotion & the nature of the shareholders targeted by these promotions.

During a merger deal, ZN would receive a fair valuation for their assets from the acquiring company...

The current fair value for ZN's assets are less than 5% of the current market-cap / share price...

--
Zion probably intends to give back-channel 'signals' that they have found oil, but will not disclose any reserve volumes so that they are in compliance with the SEC. This will enable ZN to "Test" the well & continue generating cash through share offerings for quite some time - milking the shareholders for all they are worth & for as long as possible before admitting the well is not economical.

(This is what ZN did on their last well, so this idea is based on history)

This scheme will not work if you have a JV partner or have merged...

--
Mergers &/or JV Partners are (1) would kill the share price & (2) would kill ZN's management's share selling scheme...