Here’s the transcript of the approval for the 8 month extension of which we are currently in.
————————
To:
Mr. Jeffrey Moskowitz
Managing Director Zion Oil & Gas Inc.
Industrial Park Caesarea

Re: Approval Extension License New Megiddo 428
Reference: Your request from 17 November 2021 for an Extension

After consultation with the Advisory Council pursuant to the Petroleum Law and in accordance with the reasoning set forth in your referenced letter I hereby approve the extension of the “New Megiddo” / 428 license to August 1, 2022 for the purpose only of completing the activities regarding MJ2 drilling and in accordance with the schedule as set forth in the above mentioned request .

Another application for an extension shall be considered if and inasmuch as it shall be proven that you have encountered extraordinary circumstances and after consultation with the Advisory Council pursuant to the Petroleum Law.

Sincerely,

Chen Bar- Yoseph,
Substitute Petroleum Commissioner.

CC.
Mr. Lior Shilat Managing Director Ministry of Energy
Members of the Professional Staff, Natural Resources Authority, Ministry of Energy
Mr. Elad Golan, Head of Regulatory Section, Ministry of Energy
Advocate Yonit Vannu Shrem Legal Department, Ministry of Energy

———————-

The phrase “extraordinary circumstances” is important to note. I expect a license announcement only, coupled with the 10Q to follow a week or so later.

So confusing….

As related in the May 11 PR:

“Simultaneously with the new exploration license filing, Zion has submitted a petition seeking administrative approval of a term of three-years for the #428 exploration license under Israel’s petroleum law.”

Talked to Zion today and they confirmed that they are asking for an “additional 3 years for 428”. They still couldn’t tell me why they are asking for 2 licenses on one exiting petroleum right of 99k acres.

Regulation 16(d)

“Where two or more pending applications relate in whole or in part to the same lands, such applications shall be dealt with together and disposed of in one decision.”


What can we glean from this if the former idea about there only being 16 months left for 428 based on a discovery is incorrect?

We read in Regulation 18

a) The original term of a licence is three years.
(b) The term of a licence is, upon application being made therefor, liable to extension as follows:
(1) so long as the licencee has not made a discovery in the licenced area, the Commissioner may extend the term
of the licence if it appears to him that there is good and satisfactory cause for doing so; and he shall do so if no discovery has as yet been made in that licenced area and the licencee is doing test drilling with due diligence and in accordance with the time-table set out in the conditions of the licence or the extensions given by the Commissioner, provided that the total term of the licence shall not exceed seven years from the date of the grant thereof.
(2) Where the licencee has made a discovery in the licenced area, the
Commissioner shall extend the term of the licence for such time as will give the licencee a sufficient period, not exceeding two years, within which to define the petroleum field.

So we are still not clear whether Zion has either (A) made a discovery and is asking for this 3 year additional term as an extension to define a petroleum field to make 5 years at that point or (B) not made a discovery yet and is asking for 3 additional years simply for more exploration.

Then we have the new license “on” the same 99k acres. Is this demarcated license request in a certain key regional spot for another drill rig? Have they ordered another rig already? Remember it takes some times many rigs to define a petroleum field! Those are not wildcat or exploration wells. They are productions well. Lot’s to digest….

http://www.rigcentre.com/News_Show.asp?NewsID=114

So the BOP was sourced from Singapore.

Yes. Not much info on why or what model or who owns what but it seems the large blue one belonged to Halliburton or Weatherford and was used for the initial surface casing or intermediate casing stages while the large red one was used for the latter stage up to completion with a closed hole.

Nice post micro

When has Zion ever applied for a new license AND a full 3 year term before?

It is a complete mystery. I doubt any Form 13’s would be released at all. If you bypassed the SEC regs 2 years in a row why start now?

This is an agency or government entity no doubt. At least that’s my opinion.

Can anyone name another company that is funded like Zion? I don’t see any bank rolling of even Energean or Delek. Especially not on the order of 85%!

I think they know the size already as an estimate but an appraisal well or 3 will be needed to fully delineate the borders of the reservoir.

Wrt the full term of #428 and new license #4** I think we most likely will find out late July if we consider historically the announcements before previous extensions expired.

Good morning folks. Y’all awake yet?

Go Znog!

According to Israeli petroleum laws any oil discoveries will be first and foremost for domestic supply and use. I doubt with current and future global birthpangs that an onshore oil discovery and production will be exported for but maybe cutting off Europe after the fact could very well yield less than ideal relationships.

Good point. ZNOG is the day trader’s and shorter’s dream stock. Until commercial oil is found the spikes are extremely short lived.

Nice try Bruce. MJ02 is a well drilled off trajectory of 6 degrees.

So where is this 2000 ft deep adapter that gives the ability to drill in 8 directions????

Why is this a sticky Porgie??

In late September 2017 they installed a liner hanger with which to hang the packers for isolating the zones for testing. It was a Halliburton Versa-flex. This was one of the very few types of equipment left downhole. It is not an “adaptor”.

https://cdn.brandfolder.io/IQ55YUSL/as/q5afrs-6c8ir4-d46don/VersaFlex_ELH_System_-_H09972-DS.pdf

Nope. He just made something up out of thin air. Standard plug and abandonment where cement plugs are placed at the surface, barriers placed at potential zones of flow, and at the level of the reservoir. They installed a simple xmas tree on the wellhead and the cement plugs can easily be drilled through to reopen the borehole.

Provide a source please as I see nothing that indicates an “adaptor” is installed.

Fidelity is zero commission with an individual brokerage account.

Meh…..

The days of 1:1 oil are far over. Ancient even.

It will only cost more to draw out of the earth. 100:1 EROI per barrel coming soon.

Nice Dallas. I didn’t know this was used back then. What are your thoughts of my suspicions it would be used on MJ01/2?

Ok one more before I turn in. Talk about saving “carbon credits”.


“Part of the CO2 injected into the KOC reservoirs will remain safely and securely stored within the geologic formation. This process of capturing the CO2 and utilising it in the oilfield reinforces the perception of carbon capturing and utilization storage (CCUS) and enhanced oil recovery (EOR).”

http://tradearabia.com/touch/article/OGN/387642

Very interesting article but I don’t know the results as of yet.

“In its 2013 annual review, Saudi Aramco acknowledged the fresh water conundrum and reported that the company was developing new hydraulic fracturing technologies to enhance recovery rates and increase cost efficiency, including “a CO2-based fracturing fluid as one of the technologies that may meet the water supply challenge.” Saudi Aramco already produces large volumes of desalinated water to inject into maturing oil fields to maintain reservoir pressure”

https://thearabweekly.com/saudi-aramco-looks-expand-shale-gas-production

Well color me surprised here is a video from 2014 with Halliburton performing a CO2 fracking in the Permian. Wow.

Yes. Present a technology that satisfies the green new dealists and they’ll go mad. I can see El-Harrar hearing about this while sealing the deal with gas supplies to the EU and her head exploding with pride for bringing not only massive capital inflows but also a new source of domestic oil from the Jezreel valley. ;)

And while CO2 Fracking is still in the experimental stage it could have been put to use already. Technology is moving very fast.

Abstract
Hydraulic fracturing and horizontal drilling has led to a shale gas energy boom in the United States. In addition to decreasing domestic energy costs, shale gas production has substantially reduced domestic CO2 emissions, largely due to natural gas displacing coal-fired electricity generation. Water is the principal component of working fluids used for commercial hydraulic fracturing, along with other constituent chemicals and substances to enhance fracture propagation/longevity and propping agent (e.g., sand) transport. Industry, policy makers, and other stakeholders are aware of potential disadvantages of aqueous fracturing fluids, including water scarcity, environmental impact from constituent chemicals, and poor fracture performance. To address these problems we are undertaking a study using supercritical CO2 as a replacement working fluid. Supercritical CO2 has many potential benefits and drawbacks compared with water as a fracturing fluid; it may increase gas production through several coupled processes including enhanced fracturing, reduced flow blocking, and miscibility with in-place hydrocarbons, as well as challenges such as economics, resource availability, and assurances that the CO2 is safely sequestered in the target formation. Through a combination of basic experiments, modelling, and historical research, we formally address these issues.

https://mobile.engineering.com/amp/19203.html

My base case is Israel would be very interesting in utilizing these technologies.

Nitrogen Fracking

https://www.nikkisoceig.com/frostbyte/wp-content/uploads/2014/08/2014-Summer-Cryoquip-Fracking-with-Nitrogen.pdf

Abstract

Many arid and semi-arid regions are rich in shale gas or coalbed methane. However, hydraulic-fracturing, commonly used for reservoir stimulation, has serious environmental impacts such as the consumption of large quantities of water, damage of residual organic compounds and the disposal of process water. This paper presents liquid nitrogen (LN2) as an environmentally friendly, waterless fracking technology, which could potentially replace hydraulic fracturing. Laboratory experiments on LN2 fracturing were conducted on coal samples, and high-resolution micro X-ray computed tomography was used for 3D visualization and evaluation of fracture evolution characteristics, including liquid nitrogen cyclic quenching, effect of initial fracture size (IFS) and coal saturation. The findings of this study testify to the effectiveness of fracturing by LN2 quenching on coalbed methane reservoirs. This technique would help protect water resources and alleviate other environmental concerns in arid districts during unconventional resource recovery.

And Production Solutions International performing a Nitrogen Fracking in Thrace, Turkey:

https://www.linkedin.com/posts/production-solutions-international_productionsolutions-psi-onephonecall-activity-6937988882323898368-D3zS?utm_source=linkedin_share&utm_medium=ios_app

Nitrogen and/CO2 fracking.

The deal is signed. Israel will supply the EU with lots of natural gas.

BM’s latest DD

“Remember Zion Oil using an Iranian as the computer scientist that reduced the 3D data for MJ#2? Perhaps the grid line was fudged by a thousand feet and Zion Oil missed the APS (Active Petroleum System) reservoir by that amount?
Most dismissed the idea back when the 3D seismic report was finished. But here we are, the 3D in the hands of Zion Oil, and having drilled into the target, to apparently find... no gusher. They apparently missed the reservoir. It either is just another case of bad luck? Or another reason to drill MJ#3, and to get it right the third time? Take your choice.”

Thanks for the reveal JRyan.

I was not seeing any other outfit that was actively drilling besides them.

“This is not West Texas”. If only we add access to such services and equipment.

The fracking thing is difficult to ascertain. Fracking can be similarly known as Stimulation. Fracking afaik is totally legal in Israel. I’ve not seen any evidence that MJ01 was not allowed to frack. They used a small acid stimulation as you know. There are different techniques that can be used such as water, chemical, and nitrogen. If nitrogen were to be used a sensitive region like Jezreel would be a candidate due to it being an inert liquid gas. What is still not proved up on a larger scale is study of how it might cause formation damage which is of great concern to operators.

What evidence or info do you have that fracking was a no go? I’ve heard that MJ01 had something……shh

Wrt infrastructure costs Dunn did mention the great cost, permitting, and challenges to even think of building another pad which could add 2-3 years. Using the same pad was both sound economically and technically feasible based on the wildcat MJ01 drill data.

I’m still researching mobile shale formations to better understand the methodology of how they hurt or help a drilling campaign. These were probably mud volcanics.

Being that Kness called the formations “horizontals” tells me they can and will, based on the rig’s capabilities, drill multilaterals and frack. That’s with my speculation cap on.

A funny realization was the amount of standard equipment and infrastructure utilized with an exploration well that caused such amazement and controversy. Namely the BOP stack, xmas tree, and powerlines all which are normal equipment and infrastructure on such a site. I still smh at the bears that are ruffled by it so.

The equally large bright blue BOP stack in place on the wellhead during the first stage of drilling around Q1 ‘21 while the large red one pictured to the north side of the rig on pallets and then being installed during the picture from the 4/7 PR strikes me as very odd. A mystery.

Also, anyone know who the other onshore explorer is who was having trouble with the same mobile shale formation that Zion was and that they were dealing with it for about 1.5-2 years already with no solution?

Definitely gold.

Crypto taking a beating. More than a halvening happening. Possibly a three quartering for BTC on the horizon.

The leverage in all markets is insane and the Fed just stopped purchasing MBS’s too.

I don’t believe they will be able to fit in anymore than 2 more rate hikes and with the 10yr inverting the 30yr at almost 3.367% today there is a magic number with that benchmark and the S&P whereby rate hikes will stop, QE infinity will begin, stimulus comes back, and the dollar will crater. The strength in the dollar is only temporary.

Thanks for that detail KyOil.

Kness’s comments during the ASM at around 00:45:50

He makes that statement about completion.

I will add I could not find the size of TD for MJ01. I remember it being something smaller like 5” or less. MJ02 is definitely 6” TD as of 11/23 PR.

KyOil

MJ02 was plugged at the bottom of the hole and the final casing was cemented in place. The bond log and cement log were submitted to the Ministry of Energy for the fulfillment of a completed well.

MJ01 had an open hole, a temporary completion with liner hanger, packers, and well testing but was plugged and abandoned.

Big difference between the two I wanted to point out.

Yes. No possible way this is a scam. It’s folly to consider it when provided with such facts.

Absolutely. The only fetter is the amount of cash on hand or financing to do so.

I believe they will reopen MJ01 if things for MJ02 pan out.

From 8/18 PR
“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.”

They only tapped into the upper subsurface horizons. Multi laterals after 3D and MJ02 data/production would warrant that. Tie the 2 together for a smaller footprint above surface and larger footprint below surface.

Very good work on the ideas and thoughts concerning pps, future work plans, and production guys. Tisdal, micro, mrbojangles, and KyOil. You guys are some forward thinkers!