Zion Oil & Gas Inc (ZNOG)

[JRyan]

Enough....


Ok some do not like Zion and by all means I am ok with that. Do NOT buy it. These games being played are getting old, but it does not fit the given agenda. So I will say openly what my agenda contains.

I want Israel to have a local source for their own Oil. If they get it and it is somewhere near 300k barrels a day then they are not reliant on anyone for their energy as we all know they have NatGas. If they get more, then they are LESS reliant on US tax dollars and therefore more independent. That is the meat of it for me anyway.

What is important here is that MANY believe their is considerable oil in the Levant Basin. My monies happen to be with Zion as they have been at it for a while, 2007 in my case. I also own Givot (Small but some). I have been following this for a LONG time. Those that do not like Zion are perfectly in their right to not like them. I am ok with that as well. That be as it may, there are many that think there is commercial oil there whether it be conventional or not. I am one of those people and I am FAR from alone in those thoughts.

What has changed is that the 'others' are now getting more in the game. Something that Zion has tried and Givot has already done seems to be on others minds as well.

So lets forget Zion Oil for a minute and look out with bigger glasses.Let me introduce what Delek is up to. Take it for what you may, it is not Zion Oil but it IS related to Zion Oil if not by proximity alone.

Delek - Who & What. Here are the reports:

Reserves/Resources Volumetric Reports

Ofek License – Permian
https://mayafiles.tase.co.il/rpdf/1169001-1170000/P1169244-00.pdf

Ofek License – Triassic
http://https://mayafiles.tase.co.il/rpdf/1169001-1170000/P1169245-00.pdf

Yahel License
http://https://mayafiles.tase.co.il/rpdf/1169001-1170000/P1169243-00.pdf

New Yahel 406

Promising New Region - In this project – New Yahel license, GOE expect to find hydrocarbons in both Triassic and Permian exploration targets. GOE’s experts believe that the rock section in northern Israel may have considerably better porosity and permeability and may be in a regionally higher structural position than those in central Israel (New Ofek)

Surprisingly! No well was ever drilled before in this region neither reaching Triassic nor Permian Formations not to mention testing these formations.License area was carefully selected based on the premise that the relative porosity/permeability of the Triassic and Permian formations would improve with the more northerly location. This is based on analogy of the lithological characteristics trend in other areas around the Arabian Massif (see figure).

Geophysical interpretation of seismic data acquired in the New Yahel license suggests three NE-SW fold structures. These structure could even be interconnected (!)
Estimated area of the Eastern Structure is about 30 sq. km near the Top Triassic level.The two other structures are near Haifa Bay and the Tiv’on area.Their estimated areas near the Top Triassic level are 16 sq. km and 27 sq. km respectively.
Volumetric Report of Prospective Resources



*Report by PeTech Enterprises, Inc. (TX,USA), Dec 2012.
36.6% is the Geological Probability of Success in the Permian target (Gas) case there is a discovery in the “Haifa Bay” structure, otherwise 9%.
29.6% is the Geological Probability of Success in the Triassic target (Oil) case there is a discovery in the “Haifa Bay” structure, otherwise 7.7%.
Best Estimate refer to 100% of working interests. GOE share 20%.
The planned well in the license will be named Yahel-1 and shall be drilled in the Haifa Bay structure to a total depth of 5,500 m.
The primary target is gas in the Upper Permian carbonate beds of the Arqov Formation at the lower section of the well at depth of 5,200-5,500 m.
The secondary target is oil in the Middle Triassic carbonate beds of the Saharonim Formation, expected at depth of about 3,900 m.

New Ofek 405

Permian & Triassic: Catching two birds with one rig
In this promising New Ofek license, we can find both GOE’s exploration targets.

Permian; In the 1990’s, after drilling of David 1 well, a few kilometers south of the Ben-Gurion Airport, it became to be a known fact that hydrocarbon bearing deep-lying Triassic and Permian formations exists in this area.

Triassic; In addition to David 1 as mentioned hereto, the New Ofek license is located south east to a Triassic producing oil field – Meged oil Field.

Unfortunately, David 1, which was drilled by a previous operator, had challenging wellbore geometry and casing design which prevented, in return, to perform any production tests.

Ofek2ST was effectively drilled by GOE to a total depth of 5,950m as a re-entry and a side track along David 1 well and is currently the northernmost exploration well in Israel ever penetrated successfully all the way down the Upper Permian Formations.

The outcome included strong hydrocarbons indications by gas detectors and electric logs both in the Permian and the Triassic formations.Limited Permian open hole test that were carried out under pressure of time in limited budget and with severe technical constraints, couldn’t be concluded nor conclusive.

Pending Extensive Production tests. The Ofek2ST well needs to go through conclusive production tests using acid frac’ stimulation in both prospective zones. Considering the nature of the reservoir rock, GOE’s experts are looking forward to revealing the promising immense potential.

Prospective Resources of New Ofek license
1 Probability of geological success.
2 For 100% of the license.

Now I do not know about anyone else but this is serious business. Something is going on and it doesn't fit the story we are all being told. Note the depths and the Geology in these. The one is right near Givots Meged finds.

Is it just gas they are looking for? I doubt it but that certainly is the main target, and most is yes offshore as expected. Here is something else I found:

Energy Minister Yuval Steinitz, who is currently in a round of meetings in the United States to help international energy companies come to invest in Israel, is doing so through an up-to-date report by the French research company Beicip-Franlab, according to which Israel's offshore reserves are now waiting to be discovered in reservoirs containing 6.6 billion barrels of oil And another 75 TCF of natural gas. Steinitz wrote in a booklet with Steinitz that the Ministry of Energy is planning to conduct a licensing tender in the near future.

We will recall that Tamar and Leviathan together contain a little more than 30 TCF, which means that there is still a lot of gas left in the site, and the question is whether after years of no attempt to find additional gas or oil in Israel, Which is still waiting for the approval of the High Court of Justice for the development of Leviathan to start the exploration market, and the beicip-franlab assessment is based on a reexamination of existing seismic maps using new models, with the potential for another 17 TCF in the deep layers And the potential of TCF 58 in the shallow layers. "It is interesting to note that in the booklet presented to potential investors, it is noted that the volume of gas that can be exported from new reservoirs is 50% to 100%. This is a figure like those things, certainly taking Limited.

We note that the potential of another 75 TCF of this natural gas is not far from Naton, which we have already encountered. At the beginning of the decade, a geological report by the US government showed that the potential for gas in the Middle East (not just Israel) was 122 TCF. Which means that for the oil in the current report the potential is much higher.

The following picture, which is part of the French company's analysis, shows that the gas and oil potential lies in four different layers, with a significant portion of the same potential under the Leviathan and Tamar gas layers.

Can anyone tell me these formations do NOT go East?

A Proven Target - Triassic dolomite contains and produces oil in Israel in the Meged oil field about 15 km away from the New Ofek License. The production is out of similar formations to the oil producing Palmyra formations in Syria.

Oil produced from Triassic dolomite is of high gravity 42 API and with associated gas. Common production mechanism is gas-lift.

Extensive and thick Triassic beds in center/northern Israel typically result encouraging petro-physical calculations estimates.

Based on recent regional basin analysis, the Triassic rock section in northern Israel may have considerably better porosity and permeability and may be in a regionally higher structural position than the structures in central Israel. These conditions provide potentially greater chances for successful exploration in the Northern Israel Triassic.

Exploration Target – The Permian

Persian Gulf Geological Neighborhood
Deep Permian Formation in Israel is similar in all aspects, namely – age, lithology, reservoir rock, porosity type (micro fracture, intergranular), environment of deposition, kerogen type, etc., to the Arabian Gulf Khuff Formation in which several super giant gas fields have been found, including the world’s biggest marine gas field, the North Field in Qatar.

The North-Western Israel area is most promising and may contain thick Permian layers and several extensive structures.

The present interest in deep Permian rocks is based on Dr. Derin’s work and the hydrocarbon shows discovered in the deep Permian-aged Arqov Formation in central Israel

Energy Transportation Infrastructure
Israel natural gas lines network transmission begins at the receiving terminals. The natural gas is transmitted under pressure through large diameter pipelines to “major intersections” where it enters a Pressure Reduction and Metering System (PRMS).

Then the gas is transmitted to customers and consumers using a distribution grid comprised of smaller diameter pipelines.

The natural gas transmission network in Israel currently includes four main trunklines serving the western, central, northern and southern regions of Israel.

Expanding Distribution Grid

According to the existing plans for network development, the transmission network will be able to transmit between 10 and 15 billion cubic meters (BCM) of natural gas (from the receiving terminals to the customers) per year, and approximately 1.8 million cubic meters per hour.

Crude Oil Pipelines System consists of 3 separate pipelines: A 41?, 254 km long line links the Red Sea Port of Eilat with the Mediterranean Port of Ashkelon. Two other lines feed the Oil Refineries in Haifa (13 km from Yahel-1) and Ashdod (30Km from Ofek-2ST).

The company operates two oil ports and two oil terminals with a total storage capacity of 3.6 million cubic meters for crude oil and oil products in Eilat and Ashkelon (15 km from Ofek-2ST).

On-Shore Prospective
Israel is located in the East Mediterranean domain which comprises the Levant basin. It is bounded on the west by the Eratosthenes sea mount and to the east by the Dead Sea Transform fault. The domain is an “oil and gas province”, with various targets both off shore and on shore.

Following Dr. Derin work, it is increasingly commonly agreed these days that there are possible several major on-shore oil and gas fields in Israel yet to be discovered in deep-lying old structures with geological resemblance to the Triassic oil bearing of the Palmira trough in Syria and the huge Upper Permian gas fields of the Khuff Formation in the Persian Gulf.

In the last 50 years over 450 oil and gas wells were drilled on-shore Israel, most such wells targeted shallow formations in young structures, and were drilled in the southern coastal plain, the Negev and the Dead Sea area.

GOE focuses on the Permian and Triassic deep-lying strata in old structures which were minimally investigated in central (New Ofek) and non drilled in northern Israel (New Yahel).

GOE’s licenses, which are in the center and northern parts of Israel, are expected to maximize the hydrocarbons potential of these deep strata in Israel.

So here we are, many companies thinking there IS oil, onshore, in Israel.

I happen to believe they are correct and Zion Oil for whatever reason has not been able to 'find' it. I say lets go DEEP just as the Russians did in the Gulf of Tonkin after the United States left.