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Correction: 2011 was the incentive stock plan. In 2002 the stockholders approved of a long term equity plan as quoted below:
“Long-Term Incentive Plan
At our 2002 Annual Meeting of Stockholders, the stockholders approved the establishment of a long-term key employee and consultant incentive plan, which may be structured as an employees’ royalty pool, to be funded by the equivalent of a 1.5% overriding royalty interest. The Company may, but has not yet, established a long-term management incentive plan for key employees and consultants whereby a 1.5% overriding royalty or equivalent interest in the all current and future oil and gas exploration and development rights would be assigned to key employees and consultants. As this plan has not been established as of December 31, 2021, the Company did not have any outstanding obligation in respect of the plan.”
The Equity Awards or stock options plan allows another 18,000,000 options (only if voted by shareholders and if brought up this June) for future compensation on top of the 23,015,115 options already approved as of the 14A this April 14th (Not sure how many of the 23,015,115 have been used already). So this week we had 6,000,015 shares awarded out of the 23,015,115 approved by shareholders.
“Equity Awards
Our equity-based incentive program for the entire company, including executive officers, currently consists of stock option grants. As is the case with base salary, option grants are typically governed by each officer’s employment agreement.
Nonetheless, the Compensation Committee will from time to time grant options outside of the executive’s personal employment agreement. In determining the number of options to be granted to executive officers, the Compensation Committee takes into account the market data discussed above, internal pay fairness, the individual’s position and scope of responsibility, the executive’s ability to affect profitability and stockholder value, the individual’s historic and recent job performance and the value of stock options in relation to other elements of total compensation.
In 2022 and in the future, the Compensation Committee believes it is appropriate to place a heavier emphasis on long-term equity incentives in our executive officer compensation, as opposed to cash compensation. The Compensation Committee’s intent is to more closely align our stockholders’ interest to create long-term value with that of our executive officers through equity incentives, and to preserve cash for our exploration programs.”
The shareholders in 2011 voted in the affirmative for the longterm equity options. You should ask them.
At 82 years old he’s got nothing to lose but his legacy and his interpretation of Scripture. I’m apt to believe he is subtly saying something about discovery while not openly saying it for he cannot divulge a commercial discovery legally. He can legally say, “When oil is discovered” even if it already has been.
Excellent translation. Thanks KyOil.
Free options. They are not floated shares until 4/14/2023 passes and then they can get the get the shares at .1451.
This is very good because this shows confidence in ongoing operations, probable commercial discovery, and bullishness of management. What would be ideal is if management bought shares on the open market out of pocket but of course there is a restriction in buying such as of just after the 3D seismic interpretation ( somehwere around that time).
Which one? Back during the mudlogging stage Pars Anatolian and Production Solutions International did coil tubing nitrogen flush and wireline logging of the open hole.
The reservoir testing will be performed by a yet unknown petrophysicists team from USA and/or Canada. We don’t know who that is just yet but it should be a multinational outfit skilled in well completions, reservoir testing, drill stem testing, and dealing with challenging deep high temp and high pressure wells.
Here, here. May the blessings from the land, the seas, and even better, the heavenlies be with all.
Great analysis and research
At about a $2.5 million burn rate per month they said they would be good until December 2022. Depending on cost inflation and changes in testing this could increase substantially cutting the outlook short by months. It could also be right on target with the warrants in the money and DSPP each month.
Here’s the facts as of the 10-K
“A full set of detailed and comprehensive tests including neutron-density, sonic, gamma, and resistivity logs were acquired in December 2021, as a result of which we identified an encouraging zone of interest. Zion is presently in the planning and procurement phases of extensive well testing, and this is expected to take several months.”
I won’t be offended. We need to be frank and genuine in our analysis and speculation. So many unknowns exists right now.
I surely hope they are not stringing us along. So far I believe the team to be truthful.
P50 is a statistical median estimate of oil/gas reservoir size probability. Since oil and gas reservoirs are extremely difficult to size and accurately determine life and barrels per day a statistical approach is used.
Proved (P90): The lowest figure. It means that 90% of the calculated estimates will be equal or exceed P90 estimate.
Median (P50): This is the median.
Possible (P10): The highest figure, it means that 10% of the calculated estimates will be equal or exceed P10 estimate.
For example, if a geologists’ calculation estimates that there is a 90% chance that an oil field contains 50 million barrels and another estimate says there is a 10% chance of producing another 20 million barrels in addition to the 50 million barrels. So, we would refer to:
P10 as the highest figure – it is possible that we can produce up to 70 million barrels.
P90, the lowest figure – is it proved that we can produce up to 50 million barrels.
Great points micro and I agree. It has been a very challenging go since the pandemic for MJ02 to get this far. It’s actually fairly admirable that they are at this stage in my eyes.
The equipment on the ground tells me of a much greater probability of commercial success. KyOil and I agree. I believe the pictures that were presented in the latest update are key in showing what is happening and it does confirm the Feb update with particulars of enhancement, upgrades, and stimulation.
Why MJ01 did not receive such advanced novelties I do not know. Was it short on funds? As with any resource explorer we must as investors understand there are never any revenues, there are never any assets unless discovery is made, and they always burn cash. With cost push inflation going on resource exploration companies face a dire scenario of higher energy costs and dried up financing. This is a death knell for all of them. I hope Zion get to the proven and probable stage. Have they confirmed P50? Not sure. The BOP being removed says the completion liners are in, the well bore is secured and ready for perforation and stimulation once the xmas tree is installed on the wellhead. What was confirmed during mud logging must have presented such compelling evidence that this well needed to be completed. Acid fracturing or water flooding enhancements are an added benefit if used. Anyways why deviate the drill but 6 degrees and aim for a target 2k feet deeper if the 3D didn’t say, “There it is”.
The challenge of completing such a deep well with high temps and pressures is truly daunting. Those who’ve worked in an oil patch can appreciate this matter. It takes on average at least a year or more for such a well to be completed and tested. I see projects all over the earth seeing major setbacks due to supply chain issues, sticky inflation, and worker shortages. It’s no surprise to me. Just a little longer snd we may be surprised either way.
I only post that which is public fodder or my own speculation. I have alot more info than I allude to hold.
They sure do and I know Dunn is being very specific with his wording. We’ve already broken down that email and pics into fine grains.
Of course not.
Lol
Maybe a few cordials of gladness!
I don’t believe alternative 2 of an extension to drill another hole would be approved if MJ02 is not commercially viable. Then again political winds change direction quite often and the Knesset could swing hard right with a new coalition government. After August 1st it’s anyone’s guess depending on MJ02 outcomes.
Best case scenario
1. Environmental concerns and quality of life for the valley residents with aquifer water quality and fertile agricultural land due to infrastructure build out, production field design, and massive traffic with more equipment and tankers. Long term planning.
Worst case scenario
2. Preparing to discuss P&A if tests prove non-commercial EROI. Mitigation issues.
Glad we got that detail ironed out KyOil. The rail cart with the loose bolts and welded flange to receive the BOP “most likely” is being placed for removal of the BOP stack.
I never saw that xmas tree before in drill site pictures or videos. It’s position appears to be newly placed in anticipation of installation on the wellhead for production testing as of April 5.
Thanks KyOil
Not even on Edgar yet. Javier has his options package now.
https://newsfilter.io/a/00024435a98f3cd756bb92bdf0986ff0
Gazprom just cutoff the main pipeline to Germany and Europe by reversing flow. Let’s see how this chess game progresses.
Thanks brother! Very cogent post and one I completely agree with.
It’s not Israel restricting info. It’s ZNOG.
At least we can all get a coffee and a donut if we can afford it. Maybe we can all meet at the local kibbutz market in Jezreel and just chill.
Lol!
Exactly and at depths below the gas window…….gas is destroyed.
Yup, sweet light crude @ 60,000 BOE per day.
If you like Peruvian assets Hannan Metals HANNF is a risky exploration copper/silver/gold play with a very large land package. Derisked with soil sampling, local support, and high grade soil samples of copper at 2%. That’s super high grade and very clean. By the end of 2022 they will have began their drilling program. Could be huge if drill results confirm copper soil samples. Silver is an addendum on that target. They also have copper gold porphry target as well. Perform your DD. I may be taking a position soon.
Thanks KyOil. That’s a good explanation.
Can anyone here explain why? I’m at a loss.
To be accurate we filled a vacancy but I get what you’re saying lol
Looks to be similar to the Nickel squeeze. This time though it may not be short lived.
I’d love a seat at that table lol
If only this would converge with a PR on oil discovery.
https://www.zerohedge.com/commodities/april-2020-reverse-one-bank-warns-we-are-about-witness-historic-short-squeeze-eruption
That’s my thoughts after looking him up.
It makes me wonder if
1. Mr. Mazon would join a company like Zion if it didn’t have a discovery.
2. Mr. Mazon was brought on for another purpose that we’ve no clue about.
Boggles the mind…..Another director? They better be sitting on a light sour crude reservoir that puts the Aramco find to shame.
I’m not missing any point. The connection between Dunn and Viking has long been established and we don’t have MJ03 nor will we unless it’s an appraisal well.
In the resource sector it’s very very common for CEO’s to be on the board of multiple companies, for board members to also do the same, and for industry pros to move from company to company. It shouldn’t shock you or anyone else.