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zn wants to focus on determining the commercial find they are looking for
that would then support the statements they made and make the defamation much more obvious
and its obvious they'd rather put those funds first towards finding the commercial field since they are potentially so close now
and john brown has contributed 20m of his own money towards the goal
i havent seen this posted yet so dont know whether it has been
https://www.otcmarkets.com/filing/html?id=12929459&guid=kkVEUqbNqZtMp3h
to simplify for those who dont know- zn doesnt receive 1c from our market trading-the brokers are enriched
the money from dssp purchases goes directly to zn-sometimes called an issuance of treasury stock
btw, as reported many times john brown has paid 20 million of his own money to support zn- other officers have done so by buying stock at market price etc also
STRAIGHT UP
i thought the ff was very interesting when it was 1st posted -they are obviously planning on infrastructure build out following a commercial find
Zion Oil & Gas, Inc. (“Zion” or “Company”) has appointed John T. Seery to its Board of Directors (“Board”) as an independent director, effective September 1, 2018.
Mr. Seery has over forty years’ experience in the project management and DESIGN OF OIL AND GAS FACILITIES. Projects have included refining, gas processing, compressor stations, terminals, production and construction facilities. His scope has ranged from feasibility and conceptual design and studies, including cost estimating, detail design, procurement, startup and project and construction management.
the adversary believes theres a commercial find also which is the reason for all the games
again u are misleading -i never shorted the stock and i had enough cash in the account to buy back the stock i spoke of years ago the next day- so after just 1 day trade they wouldnt allow me to trade period the next day
if they delayed their report zn would have been jumped all over for delaying-it was artificial pressure tactics that partly moved zn to issue an op update
then the very same interests who pressured the interim update portrays what the update says in a grossly false light nonstop despite the truth relayed to them
some get paid when u respond to them
the acid stimulation temporarily creates salt and water-a temporary condition-so there is absolutely no purpose to test the salt and water temporarily created
the purpose is to dissolve impediments to oil flow
once the teporsrily induced fluids have been removed the purpose is to test to see whether a natural flow is induced
once a natural flow is induced,only then is it the purpose to determine the water cut
those who dont know this standard procedure and are making an issue out of it are at best showing great ignorance, especially as this has been explained to them many times!!!
BRIEFING PAPER I Page 1 Acidizing
Treatment in Oil and Gas Operators
Background
Oil and gas operators have used acid treatment (acidizing) to improve
well productivity for almost 120 years. Acidizing predates all other well
stimulation techniques, including hydraulic fracturing which was not
developed until the late 1940s. However, until the early 1930’s, acidizing
use was limited by the lack of effective acid corrosion inhibitors to protect
the steel tubulars in the wells. With the development of effective corrosion
inhibitors, the use and further development of acid treatment (acidizing)
of oil and gas wells proliferated, leading to the establishment of the well
stimulation services industry. Today, acidizing is one of the most widely
used and effective means available to oil and gas operators for improving
productivity (stimulation) of wells. Acidizing is commonly performed on
new wells to maximize their initial productivity and on aging wells to restore
productivity and maximize the recovery of the energy resources.
Acidizing Basics
Acidizing involves pumping acid into a wellbore or geologic formation that
is capable of producing oil and/or gas. The purpose of any acidizing is to
improve a well’s productivity or injectivity. There are three general categories
of acid treatments: acid washing; matrix acidizing; fracture acidizing.
In acid washing, the objective is simply tubular and wellbore cleaning.
Treatment of the formation is not intended. Acid washing is most commonly
performed with hydrochloric acid (HCl) mixtures to clean out scale (such
as calcium carbonate), rust, and other debris restricting flow in the well.
Matrix and fracture acidizing are both formation treatments.
In matrix acidizing, the acid treatment is injected below the formation
fracturing pressure. In fracture acidizing, acid is pumped above the
formation fracturing pressure.
The purpose of matrix or fracture acidizing is to restore or improve an oil
or gas well’s productivity by dissolving material in the productive formation
that is restricting flow, or to dissolve formation rock itself to enhance existing,
or to create new flow paths to the wellbore. Two key factors dominate
the treatment selection and design process when planning an acid job;
formation type – carbonate, sandstone, or shale, and formation permeability
– the ability of fluid to flow through the formation in its natural state.
Formation type determines the type(s) of acid necessary and formation
permeability determines the pressure required for pumping the acid into the
formation.
Briefing Paper
Learn more at www.api.org © Copyright 2014 – American Petroleum Institute (API), all rights reserved. Digital Media | DM2014-113 | 05.14 | PDF
BRIEFING PAPER I Page 2
Formation Type
Knowing the type of formation being acidized and details
of its composition (mineralogy) is critical to achieving
positive results. In carbonate formations, the acid job
design is typically based on the use of hydrochloric acid
(HCl). The objective when acidizing carbonate formations
is to dissolve carbonate based materials to create new
or clean existing pathways or channels that allow the
formation fluids (oil, gas, and water) to flow more freely
into the well. In sandstone formations, the acid job design
is typically based on the use of hydrofluoric acid (HF), also
known as mud acid, in combination with HCl. Sandstone
minerals are not appreciably soluble in HCl alone but are
much more so in mixtures containing HF. The objective
when acidizing sandstone formations is to dissolve fine
sand (quartz), feldspar, and clay particles that are blocking
or restricting flow through pore spaces, thereby allowing
the formation fluids to move more freely into the well. If
a sandstone formation contains appreciable carbonate
minerals, then HCl may be added to the treatment.
Geologic formations are rarely completely homogeneous.
They contain impurities and can be highly variable in their
composition. As a result, designing an effective acid job
can be complex. Most simple acid job designs use blends
of HCl and HF to respond to the heterogeneous nature
of geologic formations. The strengths of the acids and
their volumetric ratios (HCl:HF) are based on the detailed
mineralogy of the formation being treated. Other additives
that are commonly used in an acid job include a corrosion
inhibitor to protect the well tubulars and related equipment
that is exposed to the acid, an emulsion blocker
(surfactant) to prevent formation of oil-water emulsions,
and an “iron-control agent” to retain any dissolved iron
(e.g., rust) in solution. Other more specialized additives
and different types of acids may also be used based on
the case specific conditions or needs.
Formation Permeability
Formation permeability determines the pumping pressure
required to place the acid into the formation. In general,
the lower the permeability, the higher the pumping
pressure. In high permeability formations the acid can be
pumped into the matrix of the formation at relatively low
pumping pressures. If the pumping pressure is below the
formation fracture pressure, the treatment is called “matrix
acidizing.”
Hydrochloric Acid (HCI) Molecule
ACID
Dissolve carbonate materials; which creates new
or clean existing pathways or channels that allow
the formation fluids (oil, gas, and water) to flow
more freely into the well.
BRIEFING PAPER I Page 3
In lower permeability formations the acid cannot be
pumped into the formation matrix as readily, but is
pumped through existing or induced fractures at higher
pumping pressures. If the pumping pressure is above
that which will part or fracture the formation, the treatment
is called “fracture acidizing” (or “acid fracturing”).
There is not an absolute value of formation permeability
that separates matrix and fracture acidizing, however the
range of values where this may typically occur is between
0.1 millidarcies and 10 millidarcies, depending on the
case specific situation. There are two subsets of fracture
acidizing. The first type is performed as a preliminary
step in a hydraulic fracturing operation, such as in shale
or extremely low permeability sandstone or carbonate
formations. In this case, acid (HCl or HCl/HF blend) is
pumped ahead of the fluid carrying the proppant that
will hold the fractures open once the pump pressure is
released. The purpose of the acid job in this case is to
provide the cleanest possible formation face to enable
easier fracture creation and maximize the performance
of the proppant once it is placed. The second type is
a fracture acid job, primarily applicable in carbonate
formations, where the acid is pumped alone or following
a fracturing fluid stage – with the intent of creating new
or opening existing fractures, and dissolving formation
material to create irregular facture surfaces that create
new flow paths or enhance existing flow paths into the
wellbore when the fractures close.
Operational Considerations
As mentioned above, acidizing oil and gas wells is a
routine practice that has been used for a very long
time. As a result, oil and gas operators and their service
providers have considerable expertise and experience
in safely and effectively conducting this work. Similarly,
regulators that steward oil and gas operations have
developed a well-founded regulatory framework to
manage this work, protect the environment, and protect
public health and safety.
The volume of acid used in an acid job is generally
determined by the length of the formation (footage)
being treated in the well. Acid volumes used per foot of
formation can vary depending on the design objectives
and the characteristics of the specific formation. Typical
acid volume ranges are between 10 and 500 gallons per
foot. While a volume of 500 gallons per foot may appear
BRIEFING PAPER I Page 4
to be large, in a matrix acid job, assuming 25% porosity,
the acid would be displaced less than 20 feet from the
wellbore. In fracture acid jobs, the acid will be displaced
further, but is still limited by the fracture length. Fracture
lengths are usually a few hundred feet at most.
When acidizing, the acid is chemically consumed
and neutralized as the target material is dissolved. In
carbonate formations the reaction is relatively simple
and occurs in a single step. The hydrochloric acid
(HCl) reacts with the carbonate to form a salt, carbon
dioxide, and water. When acidizing sandstones with
HF the reactions are more complex, occurring in three
stages. In the primary stage, the mud acid reacts with
the sand, feldspar and clays to form silicon fluorides and
aluminum fluorides. In the secondary stage the silicon
fluorides can react with clay and feldspar to release
aluminum and silicon precipitates, however with proper
design, formation of these damaging precipitates, which
can restrict flow of oil or gas through the formation, can
be avoided. In the final stage the remaining aluminum
fluorides react until all the remaining acid is consumed.
Geologic formations are rarely homogeneous (pure
carbonate, sandstone, or shale) but will be a blend of
carbonate, sandstone, and clay minerals. As a result,
most acid jobs are composed of both hydrochloric and
hydrofluoric acid, with the ratios and strengths depending
on the mineralogy and temperature of the formation
being treated. Other types of acids can be used in more
specialized situations (e.g., organic acids such as acetic
and formic acid as alternatives to hydrochloric acid).
Additionally, specialized additives can be included in cases
where specific chemical reactions are anticipated to
be particularly severe and require control or mitigation.
A challenge in performing acid jobs is ensuring the acid goes
where it can do the most good. To facilitate placement of the
acid across the entire target interval in the well, operators often
use coiled tubing units. A coiled tubing unit is a specialized
piece of equipment that utilizes a reel mounted tubing string
that can be run concentrically inside the well’s production
tubing to the point directly across the interval that is targeted
for treatment. The acid is pumped through the coiled tubing
and into the productive formation. This equipment allows
precise placement and pumping of the acid. It also provides
the added benefit of not exposing the production tubing to
the acid.
When pumping any fluid into a well it will have a natural
tendency to follow the path of least resistance and flow into
those parts of the formation with the highest permeability.
In an acid job, this is not the most desired result since the
objective of an acid job is to improve the permeability of a
well by dissolving material from lower permeability or plugged
areas. To direct acid to the lower permeability parts of the
formation, either chemical or physical flow diverters can
be used. Use of diverters forces the acid into those lower
permeability sections and thereby provides the potential for
the most positive results.
In all cases, once the acid job has been pumped the well is
brought on production. When this is done, the spent acid is
produced along with the oil, gas, and water in the formation.
Since the acid is chemically consumed when it contacts the
formation, the recovered fluid is relatively benign.
BRIEFING PAPER I Page 5
Environmental Management
Conclusions
• Oil and gas operators have safely and successfully
used acid to improve productivity of oil and gas wells
for nearly 120 years. Today, acidizing is one of the
most widely used processes for stimulating oil and gas
wells.
• Two types of acids are most commonly used;
hydrochloric acid in all formation types and hydrofluoric
acid in sandstones and certain shales. Other types
of acids, such as organic acids, may also be used in
specialized situations.
• Since geologic formations are never homogeneous,
blends (particularly for sandstone formations) of HCl
and HF are usually pumped with the blend ratios
based on the formation mineralogy.
• All aspects of the regulatory framework surrounding
the use of acid in oil and gas wells are well developed
and mature as are the operational and safety practices
employed by operators and service providers.
• When the acid reacts with formation materials it is
largely consumed and neutralized.
• Spent acid that is recovered when a treated well is
brought on production is treated and safely disposed
of in essentially the same way as produced water.
References
1. Halliburton, Effective Sandstone Acidizing, Best Practices Series
2. Halliburton, Carbonate Matrix Acidizing Treatments, Best Practices Series
3. Halliburton, Fracture Acidizing, Best Practices Series
4. Kalfayan, L.J. Production Enhancement with Acid Stimulation (Second Edition).
2008. PennWell.
5. Schlumberger, Reservoir Stimulation (Third Edition). 2000. John Wiley & Sons.
6. Schlumberger, Trends in Matrix Acidizing
Considerations
As already mentioned, the oil and gas industry has been
using acids for well treatment for well over 100 years.
As a result, the industry has a great deal of experience
with the safe and environmentally sound handling and
management of these fluids both before and after their
use. Operator, service companies, and regulatory
agencies have sound procedures in place that protect
both workers and the public.
Acids must be transported and used with proper
precautions, safety procedures, and equipment.
Transportation of the acid and related materials must
be done in USDOT (or equivalent) approved equipment
and containers, properly labeled, and follow approved
routes to the work site. Personnel working directly with
the acids must utilize the personal protective equipment
(PPE) specified in the Safety Data Sheet (or equivalent)
and be properly trained and experienced in the use of
these materials.
All equipment used in pumping the acid should be well
maintained and all equipment components that will be
exposed to pressure during the acid job should be tested
to pressures equal to the maximum anticipated pumping
pressure plus an adequate safety margin prior to the
start of pumping operations, in accordance with industry
standards and pressure pumping service provider
operating guidelines. The operator should consider the
use of barricades to limit access to areas near acid and
additive containers, mixing and pumping equipment, and
pressure piping.
After the acid job is successfully pumped and the well
is brought to production, the operator should consider
using separate tanks or containers to isolate the initial
produced fluids (spent acid and produced water). The
fluids that are initially recovered will contain the spent
acid (acid that is largely chemically reacted, neutralized,
and converted to inert materials) and it will typically
have a pH of 2-3 or greater, approaching neutral pH.
These fluids can be further neutralized to a pH>4.5
prior to introduction into the produced water treatment
equipment, if necessary. Once neutralized, the spent
acid and produced water can be handled with other
produced water at the production site. Most produced
water, including spent acid, is treated as needed and then
injected via deep injection wells that are permitted by the
jurisdictional regulatory authority.
those who make an issue of this show their ignnorance
agree -its a non-issue brought up by those who specialize in non issues-and the question has been answered many times already
acid stimulating areas of low permeability is a normal practice- the resulting fluid is temporary and a result of acid stimulation
the purpose is not to identify the water cut of the completion fluid but to see what happens after the stimulation is over -to see whether it induces a natural flow- i alone have explained this several times and others have also
1. We encountered oil at a depth of between 16,415 ft and 16,500 ft during drilling operations, when we circulated bottoms up. The oil was separated and tested internally and externally through our mudlogging company’s chromatograph, indicating “Light Oil” based on the chemical composition of the analyzed stream.
2. Third party petrophysical analysis of our open hole logs continues to suggest that oil is located in this zone as well as other zones of interest.
3. While testing the zone between 16,415 ft and 16,500 ft, we perforated the casing and performed a small acid stimulation job. Upon circulation of the acid out of the wellbore, minor amounts of oil were observed while taking small samples of the fluid being circulated out of the wellbore.
4. Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered. However, we can say with reasonable confidence that the formation is tight with low permeability and has few natural fractures. This is not uncommon, and often times requires advanced stimulation techniques to help determine the well’s commercial potential.
1
i dont flip but when i tried it once years ago,my account, having fallen below 25k due to broker mm dtcc etc fraud, my broker warned i could not do another day trade in the period-and not only that- they wouldnt even allow me to buy the stock back the next day-during which time the stock rose 85%,so i lost a lot due to that fraud alone
tender offers are require to be reported -and its part of the duty to keep holders informed
yes- and based on defamation -and reckless disregard for the truth does not even have to be shown bc zn and stock holders are not public figures
plus tortious interference w zn's business
those are a real basis for a suit -not the frivolous shareholder suit filed-which tries to create a new legal right which would destroy many many companies and change rules of notice retroactively
zn 1st announced oil in the hole feb 13,
and 6 days later mt sinabung- the volcano taylor said he was referring to as the sign of israel and the usa becoming energy independent- erupted
very interesting
https://gizmodo.com/indonesias-mt-sinabung-volcano-erupted-today-and-the-p-1823135796
you are right
video or translation of such was falsified
sec investigation should not amount to much
shareholder lawsuit is frivolous
many other games have been discredited
but discrediting these attacks doesnt have the same effect as the false stories to begin with
welcome to the world of "me me me non now now" rebellion motivated by fear and ready to believe any lie
the big question- the adversary knows whether the well is dry or not -if the well were dry -why all the games?? -just let it die a natural death, not an artificial artillery barrage,instead of wasting resources to attack
"Be careful on flipping don't get skunked and there rules on how many flips you can do in 5 business days without having a minimum of $25k in your acct."
yes can only day trade once per 5 business days unless have 25k in account-and if do such day trade will be admonished/warned
if bob had not reported he would've been attacked on various grounds-its easy to bash -much harder to build
yes and by law he was required to report this to stockholders even though bob had no intention of accepting the offer
for technical reasons described on this board and for other reasons i think they have a commercial field somewhere
it does not make sense to assume -as many did -that there was no commercial oil
when,due to logistical and mechanical delays,only a short period of flow testing,the 3rd level of testing,had been partially performed and only in 1.5% of the well!!!
"Zion has only tested approximately 220 feet of a well that was drilled to a total depth of over 16,600 feet, or less than 1.5% of the total measured depth."
Zion Oil & Gas Launches a New Unit Program to Support Additional Testing Required to Evaluate Reservoir Potential
Zion Oil & Gas Administrative Update
DALLAS and CAESAREA, Israel, August 21, 2018 – Zion Oil & Gas, Inc. (NASDAQ: ZN) gives further guidance of operational and administrative plans as it announces a new Unit Program under its ongoing Direct Stock Purchase Plan (DSPP).
“Following up on the detailed operational update that was released on August 16th, we reiterate the fact that there is a lot of work left to be done to determine the commerciality of the Megiddo-Jezreel #1 (MJ #1) well,” says Dustin L. Guinn, Zion’s President and Chief Operations Officer.
Zion has only tested approximately 220 feet of a well that was drilled to a total depth of over 16,600 feet, or less than 1.5% of the total measured depth. Zion emphasizes that there are multiple zones that may be capable of yielding material amounts of hydrocarbons over the 16,000 feet of geologic column not yet tested. We believe it is imperative to further explore the well’s potential based upon independent 3rd party petrophysical analysis that suggests the existence of hydrocarbons within MJ #1.
very true
and if the sec actually goes after shorters to protect longs for once it would be a good sign the swamp era is over
somebody said there was not one word about oil in todays update
which obviously is not true,as seen below
Zion Oil & Gas Launches a New Unit Program to Support Additional Testing Required to Evaluate Reservoir Potential
Zion Oil & Gas Administrative Update
DALLAS and CAESAREA, Israel, August 21, 2018 – Zion Oil & Gas, Inc. (NASDAQ: ZN) gives further guidance of operational and administrative plans as it announces a new Unit Program under its ongoing Direct Stock Purchase Plan (DSPP).
“Following up on the detailed operational update that was released on August 16th, we reiterate the fact that there is a lot of work left to be done to determine the commerciality of the Megiddo-Jezreel #1 (MJ #1) well,” says Dustin L. Guinn, Zion’s President and Chief Operations Officer.
Zion has only tested approximately 220 feet of a well that was drilled to a total depth of over 16,600 feet, or less than 1.5% of the total measured depth. Zion emphasizes that there are multiple zones that may be capable of yielding material amounts of hydrocarbons over the 16,000 feet of geologic column not yet tested. We believe it is imperative to further explore the well’s potential based upon independent 3rd party petrophysical analysis that suggests the existence of hydrocarbons within MJ #1.
thank you for staying the course-grace and peace to you
somebody said the officers should take a pay cut- i assume pay is set by an independent committee
but at any rate, as already reported by tisdal, john brown has donated 20 million of his own money -which is a good portion of his pay
and other officers have also paid into the treasury by buying options at market and no doubt other contributions
in almost any company raising funds bc they dont have net income yet, the warrants are priced below market as an inducement to buy bc such purchase goes directly to a companies treasury,whereas companies dont receive a cent off of our market trading
previous warrants, except for the feb rights offering, were all 1 and 2 dollars- presumably below market
if the company has a commercial find, the pps can weather the exercise of a number of warrants
STRAIGHT UP
still testing as i deduced
re legal,i agree the shareholder suits re these claims are frivolous and without merit-
such suit is trying to create a new right AND change the rules of notice re an investigation. The Court cant do either and even if it could it would not be retroactive to znbc it was not law at the time of the events that transpired
ion’s Administrative Update:
As we previously disclosed, the Securities and Exchange Commission (“SEC”) first informed Zion of a non-public, fact-finding inquiry by subpoena for production of documents received on June 21, 2018, before which Zion had no formal or informal communication with the SEC regarding this matter.
The SEC has asserted no accusation of wrongdoing nor have they expressed any negative opinion of any person within Zion. Zion continues to fully cooperate with and work with the SEC in the provision of requested information.
Following Zion’s disclosure of the SEC investigation, Zion became aware of a number of law firms who allege they are investigating Zion’s compliance with federal securities laws and are soliciting clients. To our knowledge, only one lawsuit has been actually filed in federal district court, but to date, Zion has not been served with formal notice of litigation. We believe these claims are frivolous and without merit, and we will wage a vigorous defense.
that would require onsite investigators - perhaps 2.21 million dollars left- but u can start w the following:
to summarize ZN recently has had an excellent current assets(CA) to current liabilities(CL) ratio(CR),esp when u realize that over 50% of CL is a
Derivative or contingent liability (see Note 6) that will not come into play once ZN finds commercial oil
so just as their previous funds run out estimate was conservative so is their estimate now- legal sec docs like 10q's require putting your worst foot forward
remember the previous qtr they stated would run out of funds jul 31 -but they didnt, did they
so funds, esp if dssp continues to provide funds, could allow them to finish testing
microcaps1 monday, 08/06/18 11:38:38 PM
Re: KyOil post# 24780 0
Post # of 27171
I never understood funds available to july 31 date
they had 7.1 M current assets as of Mar 31 10Q
3.28 M from rights offering
1 M??? from warrants
xxx from direct stock holder purchase program
so 11 plus million available from 3-31
while drilling expenses are as high as 2.5 m /month during drilling, expenses are far lower than when not drilling,right! well workers not working except for skeletal testing crew right?
if expenses are only 1/2 when not drilling 11M would last 8.8 months(at expenses of 1.25M/month)and that 1.25M normally includes expenses for current liabilities,which other than non cash payouts like derivatives were only ca 2.9M,of which only a portion would be paid since since 3-31,and includable in the 1.25 M expenses /month,unless they paid cash for BOP after 3-31
I have no idea whether ZN would do this but in many companies on these boards officers/directors defer salary at times or make a loan to the company
10q from 1st qtr
https://www.otcmarkets.com/filing/html?id=12738084&guid=c6dEU6Qfb4uuW3h
bold is as of mar31 of this yr- ignore the non- bolded previous yr
ideally current assets-ca- should exceed current liabilities- cl- so the current ratio-cr- of ca over cl is greater than one-a rather rare event for co's with no income, who often have negative working capital (cl's exceeding ca's)-in fact thousands of otc stocks have cr of .0001 to .1 etc
so zn has kept relatively very good current ratios-even blue chips like walmart have cl's exceeding ca's
Current assets
Cash and cash equivalents 4,770 6,892
Fixed short-term bank deposits – restricted 584 1,197
Prepaid expenses and other 432 434
Other deposits 533 540
Deferred offering costs 79 -
Governmental receivables 562 1,237
Other receivables 154 133
Total current assets 7,114 10,433
Unproved oil and gas properties, full cost method (see Note 4)
25,934
21,695
Property and equipment at cost
Net of accumulated depreciation of $467 and $442 190 196
Other assets
Fixed long-term bank deposits – restricted 991 990
Assets held for severance benefits 244 234
Total other assets 1,235 1,224
Total assets
34,473
33,548
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable 1,890 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6)
5,400
1,866
Accrued liabilities 956 1,701
Total current liabilities 8,716 6,787
based on this 10q they est funds only to july 31 but finds didnt run out july 31,did they
2nd qtr 10q =period ending june 30 follows
June 30,
2018 December 31,
2017
US$
thousands US$
thousands
Current assets
Cash and cash equivalents 5,937 6,892
Fixed short-term bank deposits – restricted 521 1,197
Prepaid expenses and other 325 434
Other deposits 337 540
Governmental receivables (see Note 8) 568 1,237
Other receivables 154 133
Total current assets 7,842 10,433
Unproved oil and gas properties, full cost method (see Note 4) 30,339 21,695
Property and equipment at cost
Net of accumulated depreciation of $430 and $453 172 196
Other assets
Fixed long-term bank deposits – restricted 930 990
Assets held for severance benefits 258 234
Total other assets 1,188 1,224
Total assets 39,541 33,548
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable 2,288 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6) 4,432 1,866
Accrued liabilities 1,834 1,701
Total current liabilities 9,024 6,787
the derivative liability is a contingent liability which will not rear its head if pps rises based on further info re oil or the field
estimates have not been taking into account dssp funds from what i've seen
logistical and mechanical delays have limited well employee work time/costs though costs exist to replace non working israeli charges etc
so funds likely would continue beyond sept 30 -remember the 10q's are strictly conservative legal templates-the opposite of PR's
but it is only logical that they raise funds BEFORE they run out so the testing is not interrupted
if they have high enough confidence testing will show a commercial well or field they could get a relatively short term bridge loan while pps is low bc warrants and pp's usually hold future pps down and there have been enough attacks against the pps already
or partner or give royalty- those avenues can be time consuming and costly bc grey/black knights (never seen a white knight) are almost always voracious
july dssp raised 400k dollars- august-a hard time for fundraising-would probably raise less-people/fund managers come back into the market in sept after the dog days of summer are over-so sept could raise more than 400k-hard to say after recent events
will banks make regular loans based on the capitalization of exploration costs? if so, interest rate would probably be higher than normal due to risk involved and thus at best be a hybrid bridge loan
zn is far closer to a commercial well than previous wells- given all the miracles which enabled them to finish the well and test for millions of dollars and more than 1 year it would seem those millions and miracles and the dream team etc would give rise to a reward-a reward the adversary has worked very hard to stop in zn 's life and our personal lives via hindering delaying obstructing interfering (even interfering w lower well bore and flow and rocks-i've seen things happen growing up in a cult) causing confusion etc
those adversarial blocking efforts are often successful for a season but, given the proper continued seeking/fulfillment of zions 2 purposes,should give way at the hab 2:3 appointed kairos time. After struggling through the summer months-historically a time of punishment in israel -as in the 9th of av -deliverance and turning the tide against their enemies often came at the former (early) rains associated with the high holy days of rosh hashanah and yom kippur (though significant rains usually delay to october, which sometimes host both high holy days noted above).
from the last PR:
Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered
The MJ #1 has successfully demonstrated the existence of an active petroleum system. Oil has been encountered which we believe confirms that mature source rocks have expelled hydrocarbons that have migrated into a trap which was drilled by MJ #1; and
c. There are multiple identifiable targets and objectives that have been observed based on drilling, testing and petrophysical analysis, which we have yet to test.
Have we swabbed enough completion fluid and formation fluid from zones 16,415-16,500 ft and 16,080 – 16,215 ft to effectively allow for the formation to naturally flow, and will the encouragement of that natural flow, if established, allow for commercial amounts of oil to flow?
b. Drilling analysis and petrophysical analysis suggest that there may be more potential oil-bearing zones above the Triassic boundary, which was internally picked at approximately 15,175 ft. Zion chose to focus on the Triassic because of the regional success in Givot Olam’s Meged Field. Subject to raising adequate financial resources, of which no assurance can be provided, we plan to continue with testing of the multiple zones of interest higher in the well.
c. We know that the primary zones located within the Triassic-aged formations have proven to have low permeability and few natural fractures. If the questions above continue to provide answers that suggest producible oil, advanced stimulation techniques could be used to help create an environment of higher permeability and a fracture regime more conducive to commercial flow rates.
2. If answers to the foregoing questions above are positive, and we raise the needed financial resources, we plan to acquire additional focused seismic data to help guide potential field development and continue with Zion’s vision to help make Israel energy independent.
end of selected PR portions
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it is now common to drill as many as 25 wells from the same pad w long laterals- i think thats what he was referencing
#3 -in a post xtian society they may not want to bc its onshore israel- those companies spent their entire life times trying to incur favor from saudi arabia, which, at the earliest possible moment that it was able to, imposed the oil embargo on the usa bc we supported israel's right to exist
most of this u already know but for others
it is more efficient to keep testing below 16000 feet until such testing is done- although kyoil suggested they move to jurassic he also indicated that to do so and then go back to the deep would take an extra step and more work in the long term
low permeability -low flow -so standard to stimulate w acid etc to see if flow can be induced-saw same in the twilight in the desert book we discussed here
at time of pr they were still swabbing and then have to wait to see if the stimulation was effective to induce natural flow- and may rinse and repeat on a larger basis-1st stimulation was a small job-and yet yielded 90-110 barrels of fluid /day
it is not clear whether they had tested the 2nd combined deep zone of 16080-16210?-if not they could be testing that zone also
"We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered" in the deep zones
1. We encountered oil at a depth of between 16,415 ft and 16,500 ft during drilling operations, when we circulated bottoms up. The oil was separated and tested internally and externally through our mudlogging company’s chromatograph, indicating “Light Oil” based on the chemical composition of the analyzed stream.
2. Third party petrophysical analysis of our open hole logs continues to suggest that oil is located in this zone as well as other zones of interest.
3. While testing the zone between 16,415 ft and 16,500 ft, we perforated the casing and performed a small acid stimulation job. Upon circulation of the acid out of the wellbore, minor amounts of oil were observed while taking small samples of the fluid being circulated out of the wellbore.
4. Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered. However, we can say with reasonable confidence that the formation is tight with low permeability and has few natural fractures. This is not uncommon, and often times requires advanced stimulation techniques to help determine the well’s commercial potential.
nice analysis -chairman john brown in his july 31 update reaffirmed from the heb11 hall that number 4 is not an option
i believe they will continue to fund internally unless they can get a decent bridge loan at least until they have finished testing-to hopefully obtain at least a 5000 bopd to fund further exploration-to find the commercial field that is out there
zn is not planning on failure as we see from the new director below(already reported)
https://www.otcmarkets.com/filing/html?id=12920330&guid=FJYEUnz3_s3lw3h
rosh hashanah and yom kippur are historically turnaround days
be blessed today and tomorrow! brother
probably not it either-original interview expired
pr newswire search function is not working for me
https://markets.businessinsider.com/news/stocks/genie-energy-ceo-discusses-business-outlook-723657
also not it but emphasizing geopolitical
http://www.atimes.com/partition-syria-us-israel-eye-golan-heights-oil/
i dont know what the total short interest is in millions of shares but the short volume /% for yesterday was probably the lowest i've seen for quite some time
usually at a low pps like this shorters will go relatively quiet and allow pps to rise before shorting again but if big boys want to continue buying cheap etc noise would continue
http://www.volumebot.com/?s=zn
pps almost doubled the day zn announced oil in the drilling mud feb 13
such an event apparently triggered a standard finra questionnaire
plus caused panda ect to complain to sec-as noted in the pr
so sec would investigate -i've found nothing misleading in zn's statements since feb 13 -but other co's have said sec uses a fine toothed comb so it takes time-there is no fraud- its a civil investigation- july 11 8k says sec has not accused anybody of wrong doing
and in the other stock i was in where sec investigated thoroughly a judge cleared the co of fraud-the co was cleared of all charges-so yes the sec is not always right-
and no charges have yet been brought by sec and imo would not be-if theres some technical issue where they made an honest mistake they might be fined if the sec is legalistic but thats about it
they stimulate w acid-which creates apparently what they are calling a completion fluid-whatever-name is not important
the induced fluid is apparently a mixture of the acid they stimulated with- the water produced by that acid-and oil
some of those ingredients may be difficult to separate due to the acids- or they simply didnt want to separate such bc doing so wasnt the point-the point was to stimulate a low permeabilty low fracture zone to see how such could be improved
or they didnt have time to separate before pr-pr was a rush job due to exigent game circumstances and they were in the middle of that process when they wrote the pr
once this temporary condition is over: "We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be."
they will be able to determine the natural flow rate and the amount of water vs the amount of oil
dont listen to the adversary or they will confuse and capture you,as they did re this temporary testing condition
"Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered"
The MJ #1 has successfully demonstrated the existence of an active petroleum system. Oil has been encountered which we believe confirms that mature source rocks have expelled hydrocarbons that have migrated into a trap which was drilled by MJ #1; and
c. There are multiple identifiable targets and objectives that have been observed based on drilling, testing and petrophysical analysis, which we have yet to test.
Have we swabbed enough completion fluid and formation fluid from zones 16,415-16,500 ft and 16,080 – 16,215 ft to effectively allow for the formation to naturally flow, and will the encouragement of that natural flow, if established, allow for commercial amounts of oil to flow?
b. Drilling analysis and petrophysical analysis suggest that there may be more potential oil-bearing zones above the Triassic boundary, which was internally picked at approximately 15,175 ft. Zion chose to focus on the Triassic because of the regional success in Givot Olam’s Meged Field. Subject to raising adequate financial resources, of which no assurance can be provided, we plan to continue with testing of the multiple zones of interest higher in the well.
c. We know that the primary zones located within the Triassic-aged formations have proven to have low permeability and few natural fractures. If the questions above continue to provide answers that suggest producible oil, advanced stimulation techniques could be used to help create an environment of higher permeability and a fracture regime more conducive to commercial flow rates.
2. If answers to the foregoing questions above are positive, and we raise the needed financial resources, we plan to acquire additional focused seismic data to help guide potential field development and continue with Zion’s vision to help make Israel energy independent.
to summarize zn recently has had an excellent current assets (ca) to current liabilities(CL) ratio(CR),esp when u realize that over 50% of cl is a
Derivative or contingent liability (see Note 6) that will not come into play once zn finds commercial oil
so just as thier previous funds run out was conservative so is their estimate now- legla sec docs like 10q's require putting your worst foot forward
so funds, esp if dssp continues to provide funds, could allow them to finish testing
microcaps1 monday, 08/06/18 11:38:38 PM
Re: KyOil post# 24780 0
Post # of 27171
I never understood funds available to july 31 date
they had 7.1 M current assets as of Mar 31 10Q
3.28 M from rights offering
1 M??? from warrants
xxx from direct stock holder purchase program
so 11 plus million available from 3-31
while drilling expenses are as high as 2.5 m /month during drilling, expenses are far lower than when not drilling,right! well workers not working except for skeletal testing crew right?
if expenses are only 1/2 when not drilling 11M would last 8.8 months(at expenses of 1.25M/month)and that 1.25M normally includes expenses for current liabilities,which other than non cash payouts like derivatives were only ca 2.9M,of which only a portion would be paid since since 3-31,and includable in the 1.25 M expenses /month,unless they paid cash for BOP after 3-31
I have no idea whether ZN would do this but in many companies on these boards officers/directors defer salary at times or make a loan to the company
10q from 1st qtr
https://www.otcmarkets.com/filing/html?id=12738084&guid=c6dEU6Qfb4uuW3h
bold is as of mar31 of this yr- ignore the non- bolded previous yr
ideally current assets-ca- should exceed current liabilities- cl- so the current ratio-cr- of ca over cl is greater than one-a rather rare event for co's with no income, who often have negative working capital (cl's exceeding ca's)-in fact thousands of otc stocks have cr of .0001 to .1 etc
so zn has kept relatively very good current ratios-even blue chips like walmart have cl's exceeding ca's
Current assets
Cash and cash equivalents 4,770 6,892
Fixed short-term bank deposits – restricted 584 1,197
Prepaid expenses and other 432 434
Other deposits 533 540
Deferred offering costs 79 -
Governmental receivables 562 1,237
Other receivables 154 133
Total current assets 7,114 10,433
Unproved oil and gas properties, full cost method (see Note 4)
25,934
21,695
Property and equipment at cost
Net of accumulated depreciation of $467 and $442 190 196
Other assets
Fixed long-term bank deposits – restricted 991 990
Assets held for severance benefits 244 234
Total other assets 1,235 1,224
Total assets
34,473
33,548
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable 1,890 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6)
5,400
1,866
Accrued liabilities 956 1,701
Total current liabilities 8,716 6,787
based on this 10q they est funds only to july 31 but finds didnt run out july 31,did they
2nd qtr 10q =period ending june 30 follows
June 30,
2018 December 31,
2017
US$
thousands US$
thousands
Current assets
Cash and cash equivalents 5,937 6,892
Fixed short-term bank deposits – restricted 521 1,197
Prepaid expenses and other 325 434
Other deposits 337 540
Governmental receivables (see Note 8) 568 1,237
Other receivables 154 133
Total current assets 7,842 10,433
Unproved oil and gas properties, full cost method (see Note 4) 30,339 21,695
Property and equipment at cost
Net of accumulated depreciation of $430 and $453 172 196
Other assets
Fixed long-term bank deposits – restricted 930 990
Assets held for severance benefits 258 234
Total other assets 1,188 1,224
Total assets 39,541 33,548
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable 2,288 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6) 4,432 1,866
Accrued liabilities 1,834 1,701
Total current liabilities 9,024 6,787
the derivative liability is a contingent liability which will not rear its head if pps rises based on further info re oil or the field
estimates have not been taking into account dssp funds from what i've seen
logistical and mechanical delays have limited well employee work time/costs though costs exist to replace non working israeli charges etc
so funds likely would continue beyond sept 30 -remember the 10q's are strictly conservative legal templates-the opposite of PR's
but it is only logical that they raise funds BEFORE they run out so the testing is not interrupted
if they have high enough confidence testing will show a commercial well or field they could get a relatively short term bridge loan while pps is low bc warrants and pp's usually hold future pps down and there have been enough attacks against the pps already
or partner or give royalty- those avenues can be time consuming and costly bc grey/black knights (never seen a white knight) are almost always voracious
july dssp raised 400k dollars- august-a hard time for fundraising-would probably raise less-people/fund managers come back into the market in sept after the dog days of summer are over-so sept could raise more than 400k-hard to say after recent events
will banks make regular loans based on the capitalization of exploration costs? if so, interest rate would probably be higher than normal due to risk involved and thus at best be a hybrid bridge loan
zn is far closer to a commercial well than previous wells- given all the miracles which enabled them to finish the well and test for millions of dollars and more than 1 year it would seem those millions and miracles and the dream team etc would give rise to a reward-a reward the adversary has worked very hard to stop in zn 's life and our personal lives via hindering delaying obstructing interfering (even interfering w lower well bore and flow and rocks-i've seen things happen growing up in a cult) causing confusion etc
those adversarial blocking efforts are often successful for a season but, given the proper continued seeking/fulfillment of zions 2 purposes,should give way at the hab 2:3 appointed kairos time. After struggling through the summer months-historically a time of punishment in israel -as in the 9th of av -deliverance and turning the tide against their enemies often came at the former (early) rains associated with the high holy days of rosh hashanah and yom kippur (though significant rains usually delay to october, which sometimes host both high holy days noted above).
from the last PR:
Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.
5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered
The MJ #1 has successfully demonstrated the existence of an active petroleum system. Oil has been encountered which we believe confirms that mature source rocks have expelled hydrocarbons that have migrated into a trap which was drilled by MJ #1; and
c. There are multiple identifiable targets and objectives that have been observed based on drilling, testing and petrophysical analysis, which we have yet to test.
Have we swabbed enough completion fluid and formation fluid from zones 16,415-16,500 ft and 16,080 – 16,215 ft to effectively allow for the formation to naturally flow, and will the encouragement of that natural flow, if established, allow for commercial amounts of oil to flow?
b. Drilling analysis and petrophysical analysis suggest that there may be more potential oil-bearing zones above the Triassic boundary, which was internally picked at approximately 15,175 ft. Zion chose to focus on the Triassic because of the regional success in Givot Olam’s Meged Field. Subject to raising adequate financial resources, of which no assurance can be provided, we plan to continue with testing of the multiple zones of interest higher in the well.
c. We know that the primary zones located within the Triassic-aged formations have proven to have low permeability and few natural fractures. If the questions above continue to provide answers that suggest producible oil, advanced stimulation techniques could be used to help create an environment of higher permeability and a fracture regime more conducive to commercial flow rates.
2. If answers to the foregoing questions above are positive, and we raise the needed financial resources, we plan to acquire additional focused seismic data to help guide potential field development and continue with Zion’s vision to help make Israel energy independent.
end of selected PR portions
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they stimulated the well w acid-which creates or causes the rocks to produce and or expel water- a temporary water condition-which is why they cant say going forward what the water cut is
i would copy the later 2 parts of pr agian but my mouse cant shake the last thing i copied
?
many people play the market like an atm or lottery-if the immediate profit doesnt come they bail
many cannot evaluate news and thus flee w tail between thier legs
the most reliable thing about the market is overreaction
i believe theres a commercial find somewhere,but the adversary can even manipulate conditions underground to confuse,so that can be made a focus of prayer
hopefully people will get their bearings and realize this is just a delay and more targets in the upper 16000 foot of well bore can provide what we are looking-years of petro analysis have gone into this
i think they did the 1st 2 levels of testing kyoil delineated in a long post in previous months-which is why they know its a target for flow testing-= before but the 3rd level- flow testing -will be done shortly
Thanks- i didnt realize the combined zones 2 and 3 were 16,080 - 16,210-they've not given us such detail before.
sorry -some more questions- dont mean to add more to the pressure you have as our resident oil guru -but i assume others may have such questions also
was the Nov 2017 time period when they acquired that huge orange BOP then?
are they able to acquire packers which can handle hotter temps so the packers last longer than 5 days at depth
what causes such high temps that packers -which are supposedly created for such an environment-only survive 5 days
do you know at what depth the jurassic and cretaceous are? it would probably take only 2 days for a roundtrip out of the jurassic?
so the 2 secondary zones are not necessarily limited to the jurassic
i've seen a graphic before but dont want to search thousands of posts
I couldnt determine from the PR whether the 16,080 - 16,210 triassic zone was tested-all the testing info seemed to relate to the very bottom zone.
do you think they will continue testing 16,415 - 16,500 zone to see if a natural flow occurs -and if not stimulate it one more time? before moving to the upper zones
https://www.otcmarkets.com/filing/html?id=12923779&guid=vsJEUK2lyL1dn3h
in estimating funds run out time-to keep a good current ratio-zn is being conservative as in the past
but hopefully next PR will be able to announce commercial
since the word does not return void and 18 years of effort plus all the miracles which occurred to get total depth despite all the adversaries hindering delaying interfering blocking obstacles
it would be odd not to achieve success
today is the 7th of the month of repentance/Elul leading to the days of judgment Rosh Hashanah and Yom Kippur,sept 9 and 18-ca 4 weeks time