Zion Oil & Gas Inc (ZNOG)

[geopressure]

It takes a LOT of oil to justify pipelines, & no significant commercial discoveries have ever been made in the area that Zion is looking for oil in... If oil is found, it will probably be transported via trucks to market.

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There is an operator who produces oil from the formation that Zion is targeting, but they have only drilled 3 wells since 2011 with minimal success... My research suggest that their production has a very high water-cut which makes them costly to produce...

1 of these wells was a dry-hole. 2 of these wells have been in "Extended Production Testing" since they were drilled - since 2011 & 2015. The wells required very costly completions (fracking) & the use of offset well-bores to dispose of produced salt-water via re-injection.

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Zion has no old, offset well-bores that can be utilized to dispose of produced saltwater & reinject to maintain reservoir pressure...

This means that if Zion does find oil, & it is comparable to the only offset production data that is available; then Zion will have to drill a 2nd well to dispose of / re-inject the produced saltwater & maintain maintain reservoir pressure...

So in the event that Zion announces an oil discovery, you an expect additional Share Offerings to follow, because they are probably going to need a Saltwater Injection Well...