Zion Oil & Gas Inc (ZNOG)

[tisdal]

Transportation to Haifa Refinery is a concern

This is the same concern all oil sites in Israel have (i.e. Afek/Genie, etc.). How to transport oil from the well site.

So lets come up with some solutions.

Haifa is 40 miles from the MJ#1 well site.

40 miles of pipe line should not be too much of a challenge; however, Pipeline is probably not something that will happen easily due to the surrounding areas being agricultural. It could be possible if the Israeli government gets involved and decides to implement eminent domain based on the security of the country.

So, let's look at Railway. It would not be too much trouble laying 40 miles of rail from the site to Haifa. A rail car tanker carries 700 barrels. Israel uses 270,000 barrels a day. To supply Israel's need for oil would require a dedicated railway system running back and forth between the refinery and the well site. If a single track is laid, then a 50 tanker train could make 8 runs a day to transport 280,000 barrels a day. Of course, this could be reduced to 4 runs if two trains are put into play.

Hey wait a second, the railway already exists

Jezreel Valley railway

All speculation of course, but there are immediate options.