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as a post i just posted indicates its just a normal business method of supplementing officers and or directors salary while Zn conserves cash-completely normal widespread practice
since directors etc have not done so since a may 2017 self imposed limit intended to take the wind out of speculators sails(something that probably didnt really work as intended) and thus support a stable pps,now would be a good time to supplement their income - the purpose of director/officer options
most if not all directors maintain a stock position-they may also be wary of the quicksand of the swamp and thus reinforce their financial position while they can-before a commercial field is discovered-especially as the derivative lawsuits supposedly filed on behalf of ZN seek to cause directors etc to regurgitate income etc to zn
a swamp will always try to find dirt -even where there is none- so individual directors cannot be guaranteed that they wont have to regurgitate for some supposed civil violation
as of sept 30 the CR is better than 2:1, which is good- with CA of 5.789M vs CL of 2.802M
dont know what 3d interpretation will cost- not easily discoverable via the internet-though remember one rumbling re xxx /sq mile for the 3d itself?
as just noted they say they have funds through mar 2020- 10q portion i posted-
again, macros have for the most part still been the controlling factor imo in pps fluctuations, as they have for most oil and gas companies this year-irregardless of progress on the ground-w zn's pps chart for the last year very similar to some other oil and gas stocks i now follow- co's whose pps has similarly dived despite improving real life conditions
sufficient funds are posited to last through march 2020,though i remember the 10q mentioning additional fundraising may be needed for the analysis of the 3d data-but such analysis is expected to be finished i believe by ca jan 2- a timetable suggested by all the impressively fast activity since june 30 designed as i said to show value before a r/s is required to stay on the nasdaq
since the subsequent sec showed 1.658M raised in October,that may void the need for additional fundraising before the data analysis is done
https://www.otcmarkets.com/filing/html?id=13720955&guid=cWWSUFsEBNDpy3h
was the well location too low on the structures and deeper than the potential hydrocarbons within those traps?
maybe i dont understand -wouldnt a shallower oil structure pierced by the well be discovered as such?
since the leviathon fields are productive in the 5-7km depth and meged at over 4 km and since depth of zn's well was limited by downhole considerations to 5060 meters(just over 5 km) i and i assume others have thought the oil might lie deeper especially as the oil shows occurred in the deep portions of the well over 15000 ft deep
the 3d was impressively finished in a very short time- much faster than initially predicted-but all of the actively has been impressively fast since the official last fundraising period ended ca june 30
previous estimates have been 3 months for interpretation of the 3d data-but no timeline for such was noted in the 10q on my quick perusal-but they obviously have moved things fast since june 30 to find a productive field to show value to raise pps to min bid price of one dollar by ca jan 4-6 rather than having to r/s to achieve such by jan 4-6
institutional investors would rather pps was higher
zn's motion for summary judgment in the main {non derivative} lawsuit as per the 10q has oddly neither been rejected or approved as per the 10q- havent followed court filings in tx but i assume the 10q accurately has summarized such
it is surprising that they raised over 1.6M in October without a fundraising rally
from the 10q released Nov 5,2019:
"As of September 30, 2019, we had approximately $3,380,000 in cash and cash equivalents compared to $2,791,000 at December 31, 2018, which does not include any restricted funds. Our working capital (current assets minus current liabilities) was $2,987,000 at September 30, 2019 and $537,000 at December 31, 2018. The derivative liability at September 30, 2019 was $173,000 and $345,000 at December 31, 2018, and this non-cash liability negatively impacts the working capital figure. Our working capital balances, exclusive of the non-cash derivative liability amounts, were $3,160,000 at September 30, 2019 and $882,000 at December 31, 2018.
As of September 30, 2019, we provided bank guarantees to various governmental bodies (approximately $1,183,000) and others (approximately $87,000) in respect of our drilling operation and seismic program in the aggregate amount of approximately $1,270,000. The (cash) funds backing these guarantees and additional amounts added to support currency fluctuations as required by the bank are held in restricted interest-bearing accounts and are reported on the Company’s balance sheets as fixed short-term bank deposits – restricted.
During the nine months ended September 30, 2019, cash used in operating activities totaled $4,429,000. Cash provided by financing activities during the nine months ended September 30, 2019 was $8,890,000 and is primarily attributable to proceeds received from the DSPP. Net cash used in investing activities, primarily related to the 3-D seismic shoot in the MJL, and other assets was $3,944,000 for the nine months ended September 30, 2019.
During the nine months ended September 30, 2018, cash used in operating activities totaled $4,174,000. Cash provided by financing activities during the nine months ended September 30, 2018 was $15,659,000 and is primarily attributable to proceeds received from the DSPP and Subscription Rights Offering. Net cash used in investing activities, primarily for oil and gas exploration and testing on the MJL #1 well, and other assets was $13,908,000 for the nine months ended September 30, 2018.
We expect to incur additional significant expenditures to further our exploration and development programs. While we raised approximately $8,900,000 during the nine months ended September 30, 2019, we will need to raise additional funds in order to interpret and analyze new 3-D seismic data in our license area. Additionally, we estimate that, when we are not actively drilling a well, our expenditures are approximately $500,000 per month excluding exploratory operational activities. However, when we are actively drilling a well, we estimate an additional minimum expenditure of approximately $2,500,000 per month. Zion expects that during a period of active seismic data acquisition the expenditures to be approximately $1,500,000 to $2,500,000. The above estimates are subject to change. Management believes that our existing cash balance, coupled with anticipated proceeds under the DSPP, will be sufficient to finance our plan of operations through March 2020. In addition, reference is also made to the legal proceedings referred to in Item 1 of this report relating to lawsuits filed against us following the disclosure of the SEC investigation. While we paid an advanced deposit in the amount of $500,000, any unforeseen or unexpected outlays in this regard may adversely affect our available funds or additional amounts that we may need to raise.
No assurance can be provided that we will be able to raise the needed operating capital on commercially acceptable terms or at all.
41
Even if we raise the needed funds, there are factors that can nevertheless adversely impact our ability to fund our operating needs, including (without limitation), unexpected or unforeseen cost overruns in planned non-drilling exploratory work (e.g., seismic acquisition costs, permitting and surface damages and importation of equipment into Israel, etc.) in existing license areas, the costs associated with extended delays in undertaking the required exploratory work, and plugging and abandonment activities which is typical of what we have experienced in the past.
Reference is made to the discussion above under Capital Resources Highlights for information relating to working capital that we raised through September 30, 2019. Additionally, reference is made to Footnote 9 (Subsequent Events) with respect to an additional estimated amount of $1,658,000 raised during October 2019.
https://www.zionoil.com/updates/video-data-ac...1-78065829
pps continues to defy events on the ground as it has for many oil and gas companies this year with macro-eco and macro political events controlling
https://www.otcmarkets.com/filing/html?id=13727506&guid=cWWSUFsEBNDpy3h
may 2017- before the last well was spud- a 10q noted b/d had agreed to not make stock transactions as one method of supporting a stable market in zn stock and not encouraging speculators
so, for the 1st time 2 or more - i have not looked at all the form 4's and 3 yet- directors are selling stock acquired by option- such options are a regularly recognized way of conserving an organizations cash position by reducing cash salary in part due to the granting of options ,which directors can use to supplement their income
the exercise and or selling of such option acquired stock at this time tells me that at present there is no nonpublic material info known to the insiders.
in other words, the 3d data acquisition does NOT reveal whether there's commercial oil or not until the texas specialty analysis firm to which zn passed such info analyzes the data over probably a 2 month period or longer- much sophisticated computer analysis of the data is required for a 3d survey
for the last year oil companies have been hit by a perfect storm of macro events.
Some of these events -like the many threats to safe passage of oil thru the strait of hormuz,should have caused oil to rise, as commentators have noted, but did just the opposite,causing investors to flee uncertainty
one of those threats to the strait of hormuz is irans agreement w russia for a russian military base near such- russia and iran both crazily want war,knowing they cant win a conventional war,which shows the depth of their delusion,as russia has actually planned on a first strike nuclear war for a long time now-
chinas also very aggressive game is to continue building their military via the trade imbalance with the usa until they can openly win a conventional military war-everybody wants a bigger piece of a shrinking pie and false narcistic glory of empire past-
this should also cause oil prices to rise but instead investors have fled uncertainty and lower oil prices in their unending obsessive search for the market version of the lottery,which will bring them back to zn if the survey discovers a commercial deposit
those macro events are controlling the pps of the oil companies i follow
thus,pps ignores the progress on the ground
this is the rather common illogic of a market saturated with fraud near term
until the apparently successful fundraising period ended june 26,zn had not planned on starting the survey til april 2020- which delay i thought would be disastrous
but since the fundraising period ended zn has impressively moved things forward,and even completed 30 square km of the survey(the most rural part?)by sept 25
this rush to completion by dec 31 is obviously intended to show value(and thus raise pps above one dollar) prior to the january time frame when zn has to meet the nasdaq min bid price of one dollar to stay on the nasdaq,without invoking a r/s
the game-since humans reduce everything to a game- is to guess when facts on the ground recapture control of the pps
and you would have to be a specialized oil geophysicist or similar oil field experience to intelligently guess when that would be-to what extent does data acquisition reveal whats underground before what was originally planned as 3 months of after data acquisition analysis?
exactly
https://www.otcmarkets.com/filing/html?id=12923779&guid=Fl8fUW7ZRhQyS3h
for those who question zn's methods
zn used every geophysical survey available in targeting the test well- but all such surveys etc were 2d,including their own 2d,and independent analysis estimating the possiblity of significant finds
since zn found oil, though not enough to be commercial, there was enough geologic success to suggest a 3d survey before drilling another hole
so they are using a 3d survey before drilling another hole, which is standard practice in the states in wildcatting- zn is a pioneer in using such on this scale onshore israel
everybody knows leviathon field has massive amounts of gas and some oil in the 5000-7000 meter depths
due to downhole considerations/limitations zn was limited to 5060 meters(16600 ft) -and it was in the deep section of the hole that they had oil shows
delek-a major partner in leviathon and tamar gas/oil fields,bought into the concession immediately adjacent to zn's concession on the west
given these facts and many others concerning the palmyira rift system to the northeast and meged oil fields at depths over 4000 meters to zn's southwest,the facts give promise to zn's further search via the 3d survey
theres enough info to suggest the likelihood of commercial oil somewhere on zn's license area
there are no facts to contradict the above
zn was belittled for not using 3d -and now that zn is using 3d zn is belittled for using 3d
logic indicates such belittling -since it is contradictory -is not fact based but contains an anti-zion bias
some of the reasons for continued volatility
https://internationalbanker.com/brokerage/iron-ore-prices-hit-five-year-highs-whats-behind-the-rally/
https://www.zionoil.com/updates/
yes, indeed, they have arrived!!
-all ca 5 of them-
if the survey reveals where the oil is hiding- it is the pleasure of kings to hide treasures for our education and our job to search them out-then raising money,either via debt or equity, should not be a problem
happy hunting boys
and zn has not been given credit for doing its very 1st 3d survey, a survey believed to be the largest such 3d survey ever in onshore Israel.
it still remains that delek,owner of ca 25% of leviathon, bought into the concession immediately adjacent to Zions west,and that the oil seeps zn encountered were approaching the 5-7km depth of leviathons productive fields,with ZN's TD depth of 5060 meters or 16600 feet
and that ZN is in the general intersection of the palmyira(sp?) oil fields, leviathon and meged fields
https://www.fool.com/investing/2019/08/23/heres-why-oil-and-gas-stocks-are-getting-crushed-t.aspx
an example of macros currently pummeling most oil stocks, creating a perfect storm that is disconnected from the value companies are creating on the ground-a typical example of situations that draw contrarian investors.
Mr Dunn was brought "into" ZN long before he was officially awarded the title of coo
besides, coo's dont make the contracts - the board of directors of viking and zn approve contracts which may be officially signed by the chairman or the ceo- Robert Dunn to my knowlede was not on either co's board nor was Mr Dunn ceo or chairman or President of either company
ZN's previous CEO(who stayed on board til May 10 to guide the coo transition process) brought his longtime viking acquaintance Mr Dunn on board
its totally believable that Dunn resigned from any official viking position before officially being appointed ZN COO
Even now any ZN titles Dunn hold are operational and do not entitle him to make contracts.
Again, contracts are approved by the B/D !!!!- who give either the chairman or the ceo or sometimes the Pres the authority to sign on behalf of the company a contract that is already approved by the B/D!!!
so its ridiculous and shows a great deal of ignorance to posit that Dunn awarded the contract to himself
cant believe that issue is still being bandied
viking is a private company -not a public company- so its not surprising if they dont update their website-they are not beholden to the sec-its normal to have difficulty in finding public info about a private company
one of the main purposes of being a private co is the freedom to not disclose info to the public nor be subject to the non-stop headache of scrutiny by outsiders
as the ZN's filings you posted make clear, they are executing a 3d survey precisely because they found an active petroleum system
its illogical for some to expect a wildcat(despite lots of interpretation of 2d surveys) exploration well to also be a producing well-the job of the exploration well is to find a system-and the well did that, as you've noted
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it would appear ZN is counting on geologic activity to bring pps and market value into compliance
In the vast reaches of the largest oil producing nation-the USA- specialized survey companies commonly execute surveys of 50-100 sq miles, sometimes in time periods of 45-60 days,so its possible ZN could do the same with their ca 26 sq mile survey(72 sq km)- dont remember but have posted ZN's timeline chart from their filings- the time ZN estimates for the survey itself.
The survey could be done with fewer trucks but I am guessing that the speedy 3d survey preparation activity we've learned of since the fundraising period ended June 26 is part of a plan to show value before ca Jan 9 and thus bring ZN into pps compliance
Their filings estimate 3 months for a full interpretation of the 3d survey but I'm guessing they and perhaps we will have an idea of the results before that full 3 month period is over.
ZN pps fall is similar to the pps fall of many oil and gas companies in the last year due to
1) macro economic factors(e.g fear of global recession with economies of some countries contracting and trade wars
2)macro political factors-including trade wars and russias agreement with iran to build a russian base on irans coast which could back up iran in the strait of hormuz-w king putin seeming to want to fight until what he has sowed comes back to bite him
-this should cause oil prices to rise - russia backing up irans threat to close the strait of hormuz- but instead has done the opposite- because of uncertainty
3)many of which create uncertainty
analysts have pointed out that many macrofactors which may otherwise benefit oil co's has instead done just the opposite-causing investors to flee the uncertainty instead of invest in it
so even though ZN and other oil companies are making progress,pps of many oil co's has fallen dramatically over the least year- I gave the example of an oil co with a pps of ca 5.50 a year ago -recommended by an oil specialist analyst-which has fallen to under 30c pps(despite improving its resources and balance sheet) almost exactly ZN's pps
however, when pps falls, some groups always blame the co's instead recognizing the macro factors which presently disfavor oil co's
those macro factors on balance will reverse someday and then as investors look back they will see such a time was a good time to invest
remember(I dont say this to you cowboyeee bc its obvious you remember) who is in control and the laws of sowing and reaping
one other factor which may affect ZN pps-big companies,other than hedge funds,often dont like to invest in a stock with such low pps-but when ZN finds oil- some of those co's will find ZN
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one pic implies at least 5 of these vibrator trucks were loaded onto the ship in koper,slovenia.
good viewing and good formatting-sometimes when things are posted in a solid block- no formatting- they suffer _______ but if you format them those posts would otherwise be fine-and good viewing
from last 10q,p.9-looks like the survey was planned to take ca 3 months,with this survey starting only a little more than a month after the original intention of aug 1
Zion Oil & Gas, Inc.
Condensed Notes to Financial Statements (Unaudited)
Note 1 - Nature of Operations, Basis of Presentation and Going Concern (cont’d)
On February 28, 2019 Israel’s Petroleum Commissioner officially approved the revised and updated Work Program on the Megiddo-Jezreel License No. 401 as shown below:
Number Activity description Execution by:
1 Submission of seismic survey plan to the Commissioner and execution of an agreement with a contractor to perform 30 April 2019
2 Commence 3D seismic survey in an area of approximately 50 square kilometers 1 August 2019
3 Transfer of field material configuration and processed material to the Ministry pursuant to Ministry guidelines 15 December 2019
4 Submit interpretation report 20 February 2020
On February 24, 2019 Zion submitted a request to the Commissioner to extend the Megiddo-Jezreel License No. 401 up to December 2, 2020.
On February 28, 2019 the Commissioner approved the extension of the Megiddo-Jezreel License No. 401 up to December 2, 2020.
On April 30, 2019 Zion submitted its Application for Extension of Continued Work Program Due Date on the Megiddo-Jezreel License No. 401 . The additional time is necessary for Zion to conduct a 3D survey in an area of approximately 72 square kilometers. This requires, among other things, extensive permitting activities with relevant local landowners, the Israel Land Authority (“ILA”), certain authorities and others throughout the seismic survey area and may not conclude prior to the beginning of the Jewish holidays in October and rainy season. This in turn would result in additional delays, as rain and mud are not conducive to the performance of a seismic survey which includes extensive use of vibrators.
Zion’s proposed new timelines and activity descriptions are shown below:
Number Activity description Execution by:
1 Submission of seismic survey plan to the Commissioner and execution of an agreement with a contractor to perform 30 November 2019
2 Commence 3D seismic survey in an area of approximately 72 square kilometers 1 April 2020
3 Transfer of field material configuration and processed material to the Ministry pursuant to Ministry guidelines 15 August 2020
4 Submit interpretation report 15 November, 2020
On May 1, 2019, Israel’s Petroleum Commissioner granted Zion’s work program report extension.
the sec is very very very specialized -but if there were major ongoing violations they could always and probably could and may be required to get an injunction
as i said before,anything they find would likely be civil, not criminal, resulting merely in a smallish fine limited to perhaps one officers oversight,not zn ;unintentional, not intentional
in the many articles i've read on 3d surveys,the larger the area of the survey, the deeper they will see below ground,probably one reason ZN increased the survey area to ca 70-72 sq km
and such surveys are also in a squarish pattern- apparently the most efficient way to see deep
one very big square 3d survey i saw covering a whole valley peered i think 40km deep- i was surprised -at any rate such survey peered deeper than zn would have to do- since leviathon is only 5-7km deep and meged ca 4000-4700 meters
zn already drilled to 5060 meters-16600 feet- presumably they sized the survey to see deeper than that
i've been in companies searching for minerals which even use airplane overflight sensors to estimate,plus induced polarization
so i assume a 3d survey which directly sends signals underground could estimate size- size plus the type of rock substrate and porosity should give some good ideas
i imagine most institutional investors who sold qtr 1 and 2 did so bc zn at that time had signaled the 3d wouldnt start til april 2020
I dont know what happened to move up the schedule of the survey from the expected april 2020 start date, but the early start sure is good news-
if the good news didnt collide with several macro economic factors hitting the energy and oil industry,i would've expected pps to respond accordingly
however 3d activity began shortly after the fundraising period ended june 26, with activity beginning in early july
and with the actual survey beginning in september things will get exciting again
the news re the 3d survey has been all positive- and unexpected bc the 3d survey had not been planned til april 2020 as of a few months ago
but, as i said before macro political and other events are depressing oil sector prices-some commentators have noticed that some of these macro events would normally cause oil prices to rise but instead are somewhat illogically causing prices to fall bc of uncertainty/fear(which usually cause prices to rise)
so almost all if not all oil co's have taken a beating no matter the improvement in thier company position-the stock market is one of the most illogical places in the world short term due to manipulation and overreaction
when macro events herald a recovery in the sector zn and some others will then be realized to be underpriced re pps
https://www.bloomberg.com/news/articles/2019-...demand-woe
this map which we have posted many times and is in the ibox does not show any oil shale basins in zn's concession nor has any oil shale or kerogen been mentioned by zn or independent sources re zn
https://investorshub.advfn.com/uimage/uploads/2018/9/5/fjfucadded_period_final_israel_and_jordan_oil_shale[1].jpg
in looking for maps of n israel oil leases came across this of general interest-would probably have to copy the maps separately
https://www.timesofisrael.com/dead-sea-oil-reservoir-entirely-within-israel-says-company/
iron prices are profitable for somebody to mine
Both Mr Guinn and his Viking friend Robert Dunn (ZN COO re survey) came from Viking, whose work was mostly done in eastern europe and thus the connection to the hungarian 3d survey company.
as a frame of reference, as i've noted before, a typical USA city of 250k people would cover 50 square miles- ZN's 3d survey to be ca 28 sq miles
72 Square Kilometers =
27.799355 Square Miles
https://www.otcmarkets.com/filing/html?id=13583702&guid=8WLIUnoP67dWV3h
thanks for posting that - had to go to my email to see where you got the additional information
good to see this will be done much earlier than we thought
https://www.calculateme.com/area/square-kilometers/to-square-miles/
thanks for posting that article- i hadnt seen such a good article to explain seismic testing to landowners etc
https://www.otcmarkets.com/filing/html?id=135...H2NCXyBQ3h
survey wasnt scheduled to begin til april 2020-they must have decided to start survey early -despite what they previously described as possible problems during the rainy season
and maybe the religious kibbutz will allow the survey during the sept holidays- whereas drilling was not allowed last year during such holidays(11 days out of a 22 day period wasnt available)
they arent shipping to haifa just for the fun of it- wouldnt ship if the trucks were to remain idle
thanks for your determined efforts in documenting all this-this is not the first company i've invested in,only to be then targeted-there is a commonality- the officers of the companies in question were good people in a not so good world and thus were hated without reason and held to a much higher standard than others
yes i remember the selling which wouldnt stop-didnt understand why at the time, given all the good news/PR's-
so if such was insiders depends on why they were selling - if to pay debt ok (if not recklessly done,as it seems it was) but if not required to pay debt then goes to state of mind/intention,which would not match what the company was publicly saying
but the independent roving promoter group which suddenly appeared and pushed pps to 5c was also a death knell for pps, as such promoter groups usually are after they get their quick money and leave/dump
i never took the time to study t-trades but i remember that also-is there some way to identify if that was nnlx issuing shares?
when oil in the drilling mud was announced pps went from ca 2.25 to 4.47 in one day!
imagine what an actual discovery of a commercial field would do,with only 37.2 miles from beit shean to haifa and its refinery(s)
https://www.rome2rio.com/s/Haifa/Beit-She-an