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and btw whoevers been reporting zn daily stock pps changes did not report the pps rose 6.49% on friday
and there have been 3 days to report those friday results
from otcmarkets.com
ZN
Zion Oil & Gas, Inc.
Common Stock
0.5592
0.0341 [rise on friday]
6.49% [pps rise friday]
How else do you suggest ZN raise money- road trips are falsely painted as fraud without dd to back up those claims,leaving only one reasonable alternative-what zn is doing
most companies raise revenue by issuing shares- in fact thats a primary purpose of a public company until self sustaining revenue is achieved- by definition!!! Nothing unusual!
thats often why public co's ARE public.
If insiders are filthy rich they avoid the enormous reporting hassles of a public co altogether and are a private co with very little public info.
zn does not get one cent from shares traded on the market
so, like all other companies they raise money by issuing shares - there are a variety of ways to do that - some companies use private placements, which give the private parties freebies
many penny[below 5 dollars pps] companies use toxic financing-where the loan shark gets shares discounted ca 50% below market value,pay a high interest rate to the loan shark and provides very generous conversions to the loan shark almost guaranteeing higher debt
many low penny companies utilize promotions where the promoter often gets millions of free shares and dumps them as soon as the promotion-which the promoter is handily paid for-is over.
which of these other methods should zn use??????- those other methods work against pps also- in fact promotions are often a death knell for a stock
summation
there is nothing unusual about a public company raising money as zn is doing
what is unusual is the potentially large investment pool,an offshoot of liberty not found in dictatorships
btw, i've seen co's up to $20 dollars pps without revenue
the risk reward is very good here-all wildcatting-if that includes the years of surveys zn has done-is high risk
ZN has spent 19 years in its present corporate form- and decades before that- narrowing the area to possibly contain a commercial field-[of course w the possibility they didnt drill deep enough-something that applies to mj1 also]
so for those who believe israel has more than the relativly small commercial fields found so far,that is cause for hope that the possible areas for such a field is being approached-
zn naturally provides all the legally required disclaimers - but hope is not yet illegal except in dictatorships.
ZN has posted the 3d costs at least twice,as I've previously posted
that cost over a year totals 10M
of that 6M is for ZN's costs for a year
that is a 60% ratio, not 75%
and that is bc in total ZN provides the conditions and does the preliminary survey work,some work simultaneous w the survey,and post-survey survey work
except for the actual 3d survey,ZN does pretty much everything else re the 3d survey, as can be surmised from the ff:
from p.6 of the recent schedule 14A
"The Company has commenced preliminary scouting and survey design to help identify the geologic boundaries of the proposed 3D seismic survey. Additionally, Zion held initial meetings with potential vendors to aid in the 3D seismic planning and acquisition process. Once the survey design and surface layout are completed, Zion intends to acquire the necessary government permits and negotiate potential surface damages to crops, irrigation piping, and other surface features. Zion believes it will be necessary to import seismic source equipment and autonomous wireless geophones (to record the signal) to acquire the 3D data. Once data acquisition is completed, interpretation is the final step and will involve integration with, and modification of, previous work by Zion technical staff. Zion’s ability to fully undertake all of these aforementioned activities is subject to raising the needed capital, of which no assurance can be provided."
https://www.otcmarkets.com/filing/html?id=12923779&guid=Rv9yUWLMLgaVZMh
I've posted this many times before-confirming zn's PR's Feb 2018 re oil in the drilling mud etc
And this Aug 17 filing occurred while zn was being watched-so there is no logical reason to deny zn discovered some oil-they just have not discovered commerically productive oil yet
Item 8.01 Other Events.
Zion Oil & Gas Confirms Active Petroleum System in Megiddo-Jezreel #1 Well In Israel
Additional Testing is Needed to Evaluate Reservoir Potential
DALLAS and CAESAREA, Israel, August 16, 2018 /PRNewswire/ -- Zion Oil & Gas, Inc. (NASDAQ: ZN) announces that it is completing the initial testing program of its primary zones located within the Triassic-age Mohilla Formation of the Megiddo-Jezreel #1 (MJ #1) well.
Zion’s President and Chief Operations Officer, Dustin Guinn, makes the following statement concerning the MJ #1 well:
Zion has a sincere desire to be transparent in the details of our operations with our shareholders, for a number of reasons. Most of our shareholders share a passionate alignment with the vision of Zion that extends beyond financial success. We view our shareholders as partners in this journey, which has been difficult to say the least. As a result, this operations update will be longer and more detailed than most and will be subdivided to try to answer some of the most common questions.
Did We Find Oil?
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
Is the MJ #1 a Successful Well?
This is a question that can be answered in a number of ways:
1. In considering the success rate of wildcat wells, with little to no offset data, in our opinion the MJ #1 could be considered a geologic success as follows:
a. A very favorable Thermal Gradient has been shown to exist;
b.
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.
2. Is the well commercially successful with the information that we currently have, as of the writing of this update, during the testing of the deepest zones of interest? The answer is no. The drilling and testing on this well was much more costly than we expected, and as of today cannot be considered commercially successful.
What Caused Delayed Testing Results?
Testing of the MJ #1 well has taken longer than anticipated for a number of reasons, some of which we wish to outline:
1. We made the decision to test this well only during daylight hours. Given that it was a wildcat well, we decided to only operate during daylight hours and emphasize safe operations over time and cost.
2. We continued to observe Shabbat, which limited testing operations from 7:00 am Sunday morning through 7:00 pm Friday evening.
3. In our opinion, the most impactful operational delay resulted from what appears to have been ineffective casing guns and charges, sourced locally in Israel and initially used to perforate all the zones. We purchased additional casing guns and charges from the United States at the commencement of testing, which fortunately, allowed us to re-perforate all the zones of interest to achieve injectivity and properly stimulate the well.
4. The primary zones we have been testing are all located at depths greater than 16,000 feet. Every time we had to run in the hole and out of the hole took, on average, four days.
5. Every time we wanted to isolate a particular zone to test, we had to install an isolation tool called a packer, which contains rubber elements. Due to the very high well temperature, these packers would only last, on average, approximately five days. When they failed, we had to pull the pipe out of the hole and replace the packer, which added, on average, four days.
2
What are the Future Plans?
1. We have gained a tremendous amount of geological knowledge, but there are still a lot of unresolved questions that need further evaluation:
a. 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.
Since Robert Dunn and Dustin/ZN have probably been talking since late last november,hopefully the 3d survey contract will be signed soon.
If such contract is not a 8.0.1 other item,it will be reported within 4 business days of signing
re the russell index, as clint eastwood would say, "it really doesnt matter now, does it!"
pps from articles i've read probably drops less than 5% if delisted from russell index
and in zn's case logically less than most bc index investors will have had 9 months to sell zn by the time zn could be removed from the index june 28
most such investors in zn are using zn as a speculative play-and zn still is a speculative play(something w no income yet) and as i said such spec investors only have a small portion of their portfolio in zn,so they are willing to ride it out
zn was ca number 5 in growth last june on the index- they remember that
although this deals w s and p, other articles show just a modest change in pps when a co is removed from the russell index also
https://www.nber.org/digest/nov13/w19290.html
FROM the above cite
"Past studies have found that companies added to the S&P 500 experience increases in their share values, and yet recent studies with the largest samples also have shown that there are no corresponding declines in share values when firms are deleted from that index"
" lingering "investor recognition" of firms that were once on an index may partially explain why their share prices don't fall after deletions"
did the post i'm replying to quickly w little time-these literally thousands of little issues in an entity w very little logic -the stock market-that i've had to research over the years by default-we learned nothing about stocks in any of my many degrees -stocks are very very specialized-and when my best fried dragged me into to help him i had less than zero interest in stocks
https://www.nber.org/digest/nov13/w19290.html
this and other articles show very little impact to pps when a stock is delisted
one article said impact used to be over 5% but now less for various reasons - fund managers hold (even though a stock is removed) for various reasons plus relatively recent hedge funds have impacted also
plus zn always was a speculative stock-and thus co's who invest in zn are along for the ride more than usual w usually a small allocation of their total portfolio
there is NO contract w nasdaq requiring any co to sell stocks removed from the indexes nor are they required to join a cult or disembowel their children
the diversion of funds otherwise routed to bids due to the new DSPP unit program will not continue forever -the unit program ends june 6- and removal from index will not occur til ca june 28
and june 6 is more than a month before july 8,
at which time zn will have likely have applied to nasdaq to qualify for an added 180 days under an alternative listing standard-THIS IS VERY COMMON AND USUALLY GRANTED AS LONG AS A CO APPLIES TO DO SO AND HAS A REASONABLE PLAN,WHICH ZN DOES-the 3d survey
also read a mar or may 2018 article which said russell 2000 index only requires 30M cap-- https://www.fool.com/investing/2018/03/29/when-index-funds-make-a-costly-mistake.aspx
dont know why when the lowest cap was 159 M
but re the nasdaq, there are ca 4 different ways a co can qualify to be on the nasdaq
at any rate under alternative listing standard- w 3 levels of nasdaq- zn should qualify via its market cap for the additional 180 days
again the preferred route of all such co's is to improve pps by building shareholder value -
in zn's case by finding a commercial field w aid of the 3d survey which should be done by the alternative date of jan 8,2020-though intrepretation may still contiue
which then should allow zn's license to be converted to a 30 year lease renewable for another 20 years
THE CONCLUSION OF THE MATTER IS THAT ALL OF THE HULLABALOO RE ZN BEING POSSIBLY REMOVED FROM THE RUSSELL 2000 INDEX ETC MEANS VERY LITTLE-its a distraction- the real issue will be the progress and success of the 3d survey!!!
if the survey finds a commercial field pps will solve itself
and the 3d survey does not have to stand solely on its own legs- there have been years of 2d surveys by zn and by others,which should help in the interpretation of the 3d survey
https://en.wikipedia.org/wiki/Russell_Indexes
Russell forms its indexes by listing all companies in descending order by market capitalization adjusted for float, which is the actual number of shares available for trading. In the United States, the top 3,000 stocks (those of the 3,000 largest companies) make up the broad-market Russell 3000 Index. The top 1,000 of those companies make up the large-cap Russell 1000 Index, and the bottom 2,000 (the smallest companies) make up the small-cap Russell 2000 Index.
The Russell 3000E Index represents approximately 99 percent of the U.S. equity market. Russell excludes stocks trading below $1, stocks that trade on the pink sheets and OTC Bulletin Board..., .
Annual reconstitution
Russell rebalances its indexes once each year in June, called "reconstitution". The reconstitution consists of updating the global list of investable stocks and assigning them to the appropriate indices. The Russell indexes do not immediately replace a company that merges with another firm or has its stock delisted[interesting -will have to dd further]
HOW MUCH OF ZN STOCK IS IN THE RUSSELL 3000? WOULD THINK MOST OF ZN RUSSELL INDEX STOCK IS IN THE RUSSELL 2000 small cap index-any info on that?
https://www.investopedia.com/terms/r/russell_3000.asp
"Stocks in the Russell 3000 index is reconstituted once a year on the last Friday in June. At this time, all eligible securities are ranked by their current market capitalization. This ensures growing or shrinking companies are accurately represented in the overall index. At any time, if a security is no longer eligible for membership then a replacement is named at the next scheduled reconstitution. ."
THAT IMPLIES ZN WOULD NOT BE REMOVED TIL ONE YEAR AFTER ITS FOUND DEFICIENT or it means if a co drops below the min market cap inbetween reconstitutions at the next reconstition it would be removed -which makes more sense
what is the market cap requirement to be in the 3000???
if 98% of stocks are in the 3000 by virtue of market cap,maybe zn would still have a sufficient market cap - dont just claim things and make me do all the dd
zn shares have grown by ca 14 million in the last year- since market cap is shares times pps,the increased no of shares reduces the pps requirement to obtain a certain market cap
Russell 1000® Index
? Representing the US large cap market segment, the total market cap of the
Russell 1000 Index increased 13% from $24.9 trillion as of last year’s reconstitution
to $28.2 trillion.
? With banding applied, the smallest company by market capitalization in the index is
Mercury General, with a total market capitalization of $2.5 billion
https://www.ftserussell.com/research-insights/russell-reconstitution/market-capitalization-ranges
Russell US Indexes — Historical
2018 smallest market cap was 159.2 million -which doesnt make sense-should have different smallest market caps for the russell 3000 and the 2000 small cap
zn at ca 72 M shares times current .56 is only 40m cap but this is the lowest pps since late dec
159.2 M divided by 72M shares is 2.21 pps
so zn would not have market cap for russell- but the investopedia article implies companies are not dropped til the next reconstitution the following year,which doesnt make sense either
so if zn is to be dropped why have some institutions increased their zn shares as infocus posted recently
what is the total no of zn shares in the indexes????
nasdaq regularly approves an additional 180 days if the company applies for such and has any reasonable plan to return pps to one dollar in that 180 days or in the alternative r/s at the end of the extra 180 days(which nasdaq requires a co to do at end of additional 180 days if pps hasnt returned to one dolar by then-jan 8 2020
zn naturally prefers to build shareholder value by e.g., finding a commercial field via the 3d survey by jan 8 2020(the end of the additional 180 day period)
no there is no trading volume requirement to my knowledge -if there were it would be very low and satisfied by zn
-various levels of the nasdaq merely require -among other things, that the company have at least 1.1 million shares outstanding(and not held by insiders i think - but i dont have time to look up the insider angle right now and its irrelevant bc zn easily satisfies the min shares requirement by having over 70 million shares-which btw is a very low number of shares for a 19 yr old corp
"the Company may transfer from the Nasdaq Global Market to the Nasdaq Capital Market and may be eligible for an additional compliance period of 180 calendar days'
i've seen many companies do that-as i said i now follow another oil co on the big boards based in houston which has not had a pps near one dollar for five years
Item 3.01 Notice of Failure to Satisfy a Continued Listing Rule.
On January 8, 2019, Zion Oil & Gas, Inc. (“Zion” or “Company”) received a letter from the Listing Qualifications Department staff (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) notifying the Company that, for the last 30 consecutive trading days prior to the date of the letter, the closing bid price for the Company’s common stock was below the $1.00 per share minimum required for continued listing on the Nasdaq Global Market as set forth in Nasdaq Listing Rule 5450(a)(1). The letter from Nasdaq has no immediate effect on the listing of the Company’s common stock on the Nasdaq Global Market or on the trading of the Company’s common stock.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, or until July 8, 2019, to regain compliance with the minimum bid price rule. If at any time during this 180-day period the closing bid price of the Company’s common stock is at least $1 for a minimum of 10 consecutive business days (unless the Staff exercises its discretion to extend such 10-day period) , the Staff will provide the Company with written confirmation of compliance with the minimum bid price rule and the matter will be closed.
If the Company does not regain compliance by July 8, 2019, the Company may transfer from the Nasdaq Global Market to the Nasdaq Capital Market and may be eligible for an additional compliance period of 180 calendar days. To qualify for the additional compliance period, the Company would have to meet the continued listing requirement for market value of publicly held shares and all other requirements for initial listing on the Nasdaq Capital Market (except for the bid price requirement), and provide written notice to Nasdaq of its intention to cure the bid price deficiency during the additional 180-day compliance period, by effecting a reverse stock split, if necessary.
The Company intends to monitor the closing bid price of the Company’s common stock and consider its available options if the closing bid price of the Company’s common stock remains below $1.00 per share.
as i've posted before
there are quite a few companies who fall below the min bid price and then take corrective measures either via operations to show value or meet alternative qualifications -which would give them ANOTHER 180 days to correct
and somehow some companies are able to stay listed on the big board they were on for years-i previously posted an example of a co below one dollar bid for over 5 years-an oil and gas co hq in dallas just like zn
the sky is not falling- zn had 180 days from the notice to raise bid pps to 1 dollar or move to another qualifying sector of the nasdaq- assuming they meet market value requirements etc of the alternative qualification
and as a last resort they can always r/s if they want to remain on the big boards rather than the otcqx (min bid pps of .25)
btw,theres nothing wrong w the otcqx either- walmart of mexico and adidas are examples of co's that were on the otcqx- which contains many foreign blue chips- bc despite having the near equivalent reporting information it is much cheaper to list on the otcqx-doesnt require a 150k/yr listing price and only requires 25c pps
btw,companies who invested in zn due to its nasdaq status are not required to dispose of zn stock if if if that happened
every companies wish is that they will be able to show value sufficient to bring pps to 1 dollar during these time frames rather than r/s (which is not the disaster some always portray)-
r/s has a nasty connotation bc of the occurrence in companies where pps falls to .0001 so the co will r/s to raise money via stock issuance bc the company has no other way to raise money-those .0001 companies sometimes dont even have a product and are just a shell with no assets-
zn is not in that company- but those who immediately jump on the r/s bandwagon are implying zn is-which is a great insult to zn and all the hard work they are doing daily as a real non-shell co spending millions to show value
if other activities raise the pps or if the 3d survey makes a good case for a reservoir,there is a good chance the min bid pps will reach one dollar for 10 days-and then restart the clock
and then before that clock runs out there is a good chance that zn could reach whatever reservoir is identified by the 3d
some always forget there is 2 sides to a story
so as in the link below zn feels it has answered that question-in the link below zn notes they have 180 days to raise pps or slide to another qualifying segment of the nasdaq market based on market value- and if that doesnt work -and zn will be watching the min bid -as a last resort zn can r/s to remain on the nasdaq
those who immediately jump on the r/s option are betting on failure -they are the same who call zn a scam
they are betting that all of zn's efforts to show value will fail-
https://www.otcmarkets.com/filing/html?id=13154730&guid=FVC8Uqxrs0NjJyh
thank you.
I look forward to the day -after ZN's commercial discovery-when longs can meet in Israel in a celebratory stockholders or other meeting, after many decades in the wilderness.
Pioneering efforts are not easy;their paths are often ridiculed and surrounded by land etc mines,but for the few who persevere,eventually the payoffs are,to borrow a word from a long of 13 years,gargantuan.
from an earlier post of mine dealing with Dustins departure in favor of his 3d specialist friend Robert Dunn(i begin by counteracting claims re exec compensation)
there is no evidence whatsoever that senior executives salaries are going up.
Just the opposite- wording below implies John Brown continues at same salary while taking on CEO duties. Meanwhile the vice chairman of the board position held by Dustin is eliminated,logically saving ZN more money.
Dustins move also seems logical. Dustin is a drilling specialist. Robert Dunn is a geophysical specialist and has run Vikings geophysics for many years. Dustin came to ZN from and as CEO I believe of Viking,so Dustin and Mr Dunn have known each other for a long time.
Neither Dustin nor ZN expected to be doing a 3d survey until ca late November,2018. They found oil in Feb as per 2 Feb PR's and as per an Aug 16 PR filed Aug 17 and as per the 3q 10q and the 3-12-19 10k.
Their small acid job produced 90-110 barrels of oil water and completion fluid but was not commercially productive.
Light sweet oil-the good kind- was found in the 16415 to 16500 triassic layer just 100 feet from td of 16600 or 5060 meters,so there is a good chance the oil is deeper as it is offshore at the huge leviathon site where product is 5000-7000 m deep.
Delek thinks there's enough chance that the leviathon strata -and delek owns ca 45% of leviathon- to buy 70% of the license adjacent to ZN to the west!!!!!
Dustin and ZN have probably been talking to Robert Dunn since November and configuring what each others roles could be.
Viking is a bigger company than ZN from what I've seen,drilling throughout eastern europe africa and the middle east and perhaps other areas-will have to dd Viking some more-Dustin was managing the drilling of many wells at the same time for viking.-Other than that will have to dd as i said.
Jryan-if you know Vikings call letters and or exact name let me know.
It is a good thing when a small company like ZN can attract personnel from larger companies.
Robert Dunn has 26 years of senior management experience and a cushy well worn job at Viking,heading their entire geophysical operations since 2012 and portions of their territory for years before that,with 7800 sq km of 3d surveys and 10000 sq km of 2d
So Robert is an excellent choice as COO for the 3d survey.
Since Dustin and Robert both worked for Viking together and Robert was Vikings geophysical specialist while Dustin was a drilling specialist,that means that Dustin did not take charge of 2d and 3d surveys at Viking-unless its was before 2012 in a different theater of operations than Robert was in charge of.
So what should Dustin do when ZN now needs a geophysical specialist at a miminum as COO.
Should Dustin selfishly hold onto his gravy train track-where he was being groomed for the Chairman of the board-or should he step aside and let a geophysical specialist takeover as COO(Director of Operations).
Dustins good hearted motives are clear from both his onboarding letter and his resignation letter and from the videos of the June 5 stockholder meeting.
Its sad to see him go FOR NOW- who is to say he wont be back when they make a commercial discovery and need a drilling specialist again???!!!
Look forward - his departure does not mean the sky is falling!
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(i) On April 12, 2019, Zion Oil and Gas, Inc. (the “Company”) was advised by Dustin L. Guinn that he is resigning from his position as Chief Executive officer, President and Vice Chairman of the Board of Directors (the “Board”) of the Company, effective immediately. Mr. Guinn’s resignation is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Mr. Guinn intends to remain available through May 10, 2019 to assist the Company in the transition process. A copy of Mr. Guinn’s resignation letter is attached as an exhibit to this Current Report on Form 8-K.
Item 8.01 Other Matters
Robert W.A. Dunn has joined the Company as Director of Operations, effective May 1, 2019. Mr. Dunn’s impressive resume includes over 26 years of senior management and field operations focusing on technologically driven seismic acquisition across the globe. During the past decade of working in the Eastern Hemisphere, Mr. Dunn has acquired more than 7,800 square kilometers of 3D and 10,000 kilometers of 2D seismic surveys which have helped exploration and production customers make informed decisions in their exploration programs. Mr. Dunn will be overseeing the Company’s planned acquisition and processing of 3D seismic data, in addition to other operational matters as they arise. A copy of Mr. Dunn’s biographical information is attached as an exhibit to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
(ii) In order to streamline the organizational structure of the Company with the departure of Mr. Guinn, on April 12, 2019, the Company’s Board appointed John M. Brown, the Company Executive Chairman of the Board, as the Chief Executive Officer. John M. Brown, age 79, is the founder of Zion Oil & Gas and has been a director and Chairman of the Board of Directors of Zion since its organization in April 2000. Mr. Brown was appointed Executive Chairman in January 2010. Mr. Brown, previously served as the Company’s Chief Executive Officer from April 2000 to September 2004 and as President from April 2000 to October 2001. He was also appointed as Interim Chief Executive Officer on October 18, 2012 and on January 1, 2014. Mr. Brown will continue to serve as the Executive Chairman. Mr. Brown has extensive management, marketing and sales experience, having held senior management positions in two Fortune 100 companies - GTE Valeron, a subsidiary of GTE Corporation and a manufacturer of cutting tools, where he was employed from 1966-86 and served as the corporate director of purchasing, and Magnetek, Inc., a manufacturer of digital power supplies, systems and controls, where he was corporate director of procurement during 1988-89. Mr. Brown holds a BBA degree from Fullerton College. Mr. Brown will continue to serve under the terms of his existing employment agreement with the Company[implies takes on ceo duties without additional compensation-a purpose of stream lining].
(iii) On April 12, 2019, the Company appointed William H. Avery, currently Executive Vice-President, General Counsel and a non-employee director on the Company’s Board, as President of the Company. William H. Avery, age 71, was appointed to the Board as a non-employee director, effective September 1, 2013. From 2001 to 2003, Mr. Avery worked on a broad variety of administrative, financial and legal matters for the Company. He served as Vice President of Finance and Treasurer commencing 2003 until 2007. He worked full time as Executive Vice President and Treasurer and as a director commencing in 2007 with responsibility for administration, finance and legal until 2010. From December 2012 to his current appointment, he has been retained as General Counsel and from October 2018 as Executive Vice-President to his current appointment under an independent consulting contract. Mr. Avery has a BBA in Finance and Economics from Southern Methodist University and a Juris Doctor from Duke University. Mr. Avery will continue to serve under the terms of his existing employment agreement with the Company.
There are no family relationships among either of Messrs Brown and Avery and any director or executive officer of the Company, and other than as described in this Item 5.02, neither Mr. Brown nor Mr. Avery have any direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Dustins resignation letter
April 12, 2019
John Brown
Chairman of the Board of Directors
Zion Oil and Gas
12655 North Central Expressway, Ste. 1000
Dallas, TX 75243
Dear John Brown and the Board of Directors,
The last three years have been a true journey of faith for me and one that I have absolutely loved. I felt that, as was written in Esther 4:14,“.…you have come to your royal position for such a time as this.” I felt as though God called me to Zion to help drill and complete the MJ#1 well.
Part of being a leader, though, is the recognition that the organization which you lead has needs that change through time, and now is such a time, a time of transition. It therefore seems prudent for me to step down so that I can support the Company’s efforts to attract additional talent that will help accomplish the Company’s goals for its next stage of exploration. To that end, I believe Rob Dunn meets that requirement and will be critical to the success of this next phase.
I hereby resign my positions as CEO, President, COO and Vice Chairman of the Board, effectively immediately. I love Israel, believe in Zion’s project and the science supporting it, and will always be aligned with the vision of Zion and its mission.
Zion Oil & Gas was created for a purpose, and the purpose is bigger than any one person. The continued miracles that the Lord has done are evidence of His blessing on this company (Exodus 34:10-11).
I am indebted to the family at Zion and each of its shareholders and supporters and cannot wait to see how God will continue to use Zion to share the Gospel of Jesus Christ through its exploration efforts.
Sincerely,
Dustin Guinn
“I will bless those who bless you, And I will curse him who curses you; And in you all the families of the earth shall be blessed.”
Genesis 12:3
Exhibit 99.2
ROBERT W.A DUNN.
Profile
Began career in seismic acquisition 26 years ago working in all phases of acquisition from field operations to presidential and directorship roles in onshore drilling and geophysical related services spanning multiple continents. Mr. Dunn’s expertise has been focused on obtaining optimal results during exploration and developmental phases in frontier regions while advising and implementing program design and execution with geology and geophysics teams in order to obtain safe, and commercially effective results.
Experience
President Geophysical Viking Geophysical Service/Acoustic Geophysical Services — 2012- Present
Mr. Dunn was responsible for managing all aspects of geophysical exploration with operations in Europe, Turkey and Africa. During peak operations Mr. Dunn managed in excess of 500personnel and 6 crews. Having acquired over 7,800km2 of 3D along with 10,000km plus of 2D surveys in multiple landscapes with total contract values excessive 230 million USD Mr. Dunn focused on operational and financial leadership. Mr. Dunn continues to apply new technology and acquisition methodology with contractors and field management to obtain optimal exploration objectives for the E&P sector.
Managing Director Central European Drilling — 2013- Present
Responsible for the overall performance of the European drilling division. Execution of strategy and planning from the Board of Directors. Formulating and implementing required policies to achieve plans with an operational footprint focused in Hungary, Romania, and Bulgaria.
Managing Director Viking Oilfield Services N.Iraq — 2015-Present
Working with operations teams in N.Iraq to achieve all strategies and goals defined in yearly business plans focusing on growing Viking’s client base promoting increased asset utilization.
Technical Operations Manager — 2009- 2012 Viking Geophysical Services.
Introduced first autonomous wireless geophysical crew for primary E&P customer base which helped grow the exploration base during which I managed the acquisition of over 2200km2 of 3D which aided in the discovery of new basins thereby allowing E&P to make informed decisions on profitable exploration drilling.
Project Manager — 2000- 2006 CGG Veritas.
Responsible for the management of multiple programs in diverse regions ranging from Arctic to Jungle operations in South America. Mr. Dunn was responsible for all field operations in remote regions inclusive of logistics and acquisition operations. Mr. Dunn was also responsible for all activities based outside the corporate office reporting to the operations management teams and president.
Technical and Recording Crew Manager -1993-2000 Veritas.
Mr. Dunn was integral in the identification and promotion of new innovative processes helping Veritas achieve the vision becoming the largest most trusted name in the geophysical industry. Was instrumental in the development of new methods of geophysical acquisition throughout the Canadian Rocky Mountains including the utilization of helicopters to aid in the deployment and retrieval of seismic acquisition equipment
Other:
Member of the Society of Exploration Geophysicists. European Association of Geophysical Exploration.
successful vendor relationships,which includes leases, are assets-imagine doing business without such relationships
just as in a baseball game, imagine playing the game without teammates,who are assets,whether presently monetized or not
dont confuse an established blue chip company with the parameters for a developing(as in no revenues yet)company
a lot of things have to be assembled before revenue begins-they are assembled and now its a matter of time and honor to see the fruit of those labors
all of the following are also assets:
capitalized costs,as per recognized GAAP - where, before pronouncing the well noncommercial, zn had ca 40M assets
plus the largest asset is a 99000 acre concession-which is very large by onshore israel standards-something that grows more valuable as competition for such becomes more prominent, as it has recently,with delek, which owns 45% of leviathon, buying 70% of the asset next to zn on the west!!!!
and when they find a commercial field that license will be converted to a 30 year lease(still say a lease is not an asset?)renewable for another 20 years,and if the mj1 well is seen as a critical factor in eventually making that discovery why shouldnt such costs be capitalized again?
on the other hand, if one only believes in black holes and destruction, these things would not be assets,but for our purposes we are dealing with a universe of humans,relationships and visible matter
so, again, delek bought into the adjacent concession, presuming the same leviathon strata continues underground onshore israel!!! Wouldnt that be exciting!!!
other assets they have are beyond the understanding of many ordinary laymen
plus leases of drill rig etc(if u dont think having a drill rig onsite is an asset then realize the time it takes to find ,contract for and move a rig onsite), and properties, real and personal
plus it's people- 16 in the Dallas office,9 in the Israel office,plus any additional contracted personnel
plus the executives,whom I'm aware from filings and dd average over 30 years each of oil and gas exploration
plus their vendor relationships - vendors who appreciate fiscally conservative reliable consumers who believe in honor and thus can be trusted as contract partners
plus the biggest oil and gas company following in the world!!! who are in agreement w ZN's purposes-wow!!!
Thats a big asset,which in a commonsense world cannot be ruled to be illegal unless some authority declares itself as the sole arbiter/dictator of our thoughts and feelings etc
anybody ready for another road trip?
plus it's people- 16 in the Dallas office ,9 in the Israel office
plus the executives I'm aware from filings and dd average over 30 years of oil and gas exploration
plus their vendor relationships - vendors who appreciate fiscally conservative reliable consumers who believe in honor
plus the biggest oil and gas company following in the world!!! who are in agreement w ZN's purposes-wow!!!
anybody ready for another road trip?
are you familiar with the concept of capitalizing costs-where before pronouncing the well noncommercial zn had ca 40M assets
plus the largest asset is a 99000 acre concession-which is very large by onshore israel standards-something that grows more valuable as competition for such becomes more prominent, as it has recently,with delek, which owns 45% of leviathon, buying 70% of the asset next to zn on the west!!!!
presuming the same leviathon strata continues underground onshore isreal!!! Wouldnt that be exciting!!!
other assets they have are beyond the understanding of many ordinary laymen
plus leases of drill rig etc, and properties, real and personal
good to know-
one wouldnt ordinarily conceive of wells in israel as being that close,except from the same well pad in search of the same field, as zn is hoping to accomplish with the 3d survey of 60 square km surrounding the mj1 well closed in november.
the original intention of 50 sq km would be ca a 2.48 mile radius on average around zn's mj1 well-so a 60km would average 23.16613mi²,dived by pi(3.1415...) is a diameter of 5.431025...
and a radius(1/2 of diameter) of ca 2.7155 miles-exciting days
thanks for providing the following info:
That's the photo. Yes Indeed.
Look at Asher Atlit [upper left]
Look how close Elijah #3 is to Asher Atlit.
Go DEEPER?
From Any Sorelle's Asher Atlit #1 -
Early 1983
"Drilling continued without incident until, at 20,570 feet Atlit II struck oil! What oil experts call “very good shows” came to the surface; graded as light oil at 35 to 40 degrees API. SoRelle continued to a final depth of 21,431 feet. The zone of oil bearing rock, was estimated at 470 feet, from 20,570 to 21,309 feet."
6,270 to 6,495 meters was a (470 foot zone of oil bearing rock)
re the question of zn debt, which avoids recognition of zn's assets
1st i will mention that if the 3d survey finds a commercial field many of the costs of the 3d survey will be capitalized,just as the oil exploration expenses of the mj1 well were
and if a commercial field is found and it is recognized the exploratory well mj1 was a significant factor in the discovery of the commercial field why should not those oil exploration funds be capitalized again??? they would still be capitalized if the exploratory well found a commercial field-an issue the never zn side would never address,just as zn assets are ignored and all the attention is paid to zn liabilities -which is not fair bc there are 2 sides two a balance sheet - not just one- quite a question and prospect eh-thanks
As I said before,zn operates on a pay as u go basis -the only exception to that was the convertible bonds
but u see the bonds are convertible into common stock and that conversion thus does not cost zn anything except fees
what matters in any discussion of near term financial health is the ratio of current assets(5.731 M assets on 10k) to current liabilities (4.834M)OR 1.185-anything above 1 is nice-something walmart etc have not had for most if any quarters during my observation for some time
as I pointed out below,many blue chips including walmart are very content to have current liabilities exceed current assets
most of zn's current debts are the usual unavoidables -accts payable (u cant pay vendors or employees every minute of the day etc)
pf4 zn only has a CONTINGENT[may turn out to be no debt]liability on the bonds of 345k,based on the derivative nature
the bonds themselves are CONVERTIBLE into cs which costs zn NOTHING except for fees
see notes 7-8 p.f33-34 10k
zn only pays interest -which is sometimes capitalized[strengthening the balance sheet] and sometimes not
and due to the nature of the contingent liability such liability may never materialize
so -there is the interpretation of your emphasis on zn bond debt
note -this fundraise does not foreclose any possible buyin partnership etc- those things take time due to negotiation and are often not disclosed til finalized due to nda's-non disclosure agreements, which are very common
and logic would require a fundraising protocol separate and apart from such bc you can never predict w 100% accuracy whether a successful negotiation will be concluded
i have no proof of such negotiation- but circumstantial encouragement comes from delek's buyin of the concession abutting zn on the west
https://www.otcmarkets.com/filing/html?id=13374529&guid=AjS3UKAXfkIVt3h#F8K042419EX99-1_ZIONOIL_HTM
yes -same time frame(end of fundraising will be 6 months after the nov 29 time frame of 12 months-does say 6-12 months somewhere but they made it clear eleswhere back in nov or dec that it would be 12 months total and so after fundraising ends june 6, now will be ca 6 months after june 6 before completion)
and exactly the same total cost previously estimated (nov 29)i.e.,10M
interesting the warrants are 2 dollars this time,zn apparently expecting pps to rise above 2 dollars before end of exercise period for the warranrs aug 6 2019 to aug 6 2021(recently when pps didnt rise above the warrant price zn extended the time period for exercise of a class of warrants-yes can be done via r/s but zn has not said one word re that(and interesting zn says price of warrants will not change-and price of warrants would change with a r/s) -
i believe zn expects to qualify for an additional 180 days to cure min bid pps via the natural route -building stockholder value)
last fundraise was the worst possible time of year to fundraise -the 2 weeks before xmas and the 29?days after xmas (when everybody in a materialistic culture is broke bc of xmas)and thus they raised at that time only 2M of the total 10M needed for the 3d survey-thus this new raise
also remember the market experienced its recent low ca dec 26 due to fed interest rate raises -that includes zn's lowest recent pps of ca .40 ca dec 26
and a fundraise almost immediately after being told the well was not commercial was not the best incentive
this raise comes at a fairly propitious time to fundraise(except for the beginning of vacation season/summer in the north hemisphere
i've posted the info re an extra 180 days to meet nasdaq listing requirements before,which includes a min market value somewhere from 1 to ca 80M-there are so many alternative min market requirements depending on which of 3 nasdaq markets a co is on and i cant find a definitive market requirement -partly bc of 3 nasdaq markets-but i saw previously something re a 40m market cap which may apply here
zn market cap of ca 71M shares times .77pps is 54,670,000,so if a min alternative listing standard requirement of 40M market cap applies that,along w other things, would give zn an additional 180 days after july 8 to raise the min bid list price to one dollar
as i said min market caps range from 1.1M to ca over 100M to stay listed
one of those market caps is 75M-dont yet know if that has anything to do with zn's mention of 75M
zn's market cap would be rising every month due to the DSPP program even if pps remained the same-- number of shares times pps = market cap
the dry hole terminology is used because its counterintuitive to a layman and only understood in oil circles
'noncommercial' would be more accurate for our purposes-since kyoil is the only oilman to my knowledge on this board -especially since dry hole can mean one of two things;
1) not a drop of oil-which some falsely claim
2)oil such as found in mj1 but not enough to be commercially productive
yes, many false claims- e.g., bankruptcy, are made against zn without an iota of evidence to back them up in attempt to control the discussion and get eyes off the work zn is doing
at no time during my observation of zn has zn ever been in danger of bankruptcy- a matter of assets vs liabilities
and thats bc zn purposely operates on a pay as you go basis-purposefully avoiding any debt which would exceed their ability to pay
the main determinant or ratio that accountants use to determine current financial health is the current ratio-the ratio of current assets to current liabilities
now many big blue chips are willing for current liabilites to exceed current assets, including walmart, and nobody has ever to my knowledge said walmart is in danger of bankruptcy-e.g 77477 millions current debts vs only 61897 millions current assets -walmarts current debt has exceeded their current liabilities every quarter for many quarters during my observation,so they regularly have a current ratio below 1
whereas during my observation zn's current assets(CA) as noted on 10q's and 10k's have always exceed current liabilities(CL)with CA being as much as twice or more CL's at times
since otc stocks are subsumed under the broad auspices of the nasdaq,almost all if not all nasdaq stocks including zn can be found on otcmarkets.com- much easier than inputting cusip no and full name etc to sedar sec etc only to be told ad nauseum, "no research results found' on those horrible sites
https://www.otcmarkets.com/filing/html?id=13288364&guid=5vI3UeCfOs7gZbh
the latest 10k to my memory is the worst ratio i've seen of zn's ca to cl and yet even then zn's ca of 5.731M exceeds their cl's of
4.834M
so zn's worst current ratio that i've seen is better than i have seen for walmart for a long time
and zn raised over 1.7 M from jan 1 to feb 25 as per subsequent event notation in the 10k,which is a greater receipt of funds than normal expenditures
zn has shown a very good ability to raise funds-e,g raising ca 18 M in 2018,something which is hated by zn's detractors
a chart recently posted and postulated as a negative against zn's fundraising was actually a positive for those in the know,showing that zn's marketing manager had raised anywhere from 10 to 16 dollars for every dollar spent fundraising
many big organizations are lucky to raise 2 dollars for every dollar they spend fundraising
i shudder as what to me are irresponsible organizations running nonstop tv commercials for months on end which cost untold millions constantly begging with outrageous emotional appeals
in a developing company what matters is whether they have a product-many penny stocks[defined as stocks below 5 dollars] dont-and those companies ability to produce that product
i've seen many co's predict many millions in revenues when they neither have a product nor the equipment or ability or assets to produce a product!!
since zn controls their expenditures and raises money at such an efficient rate and doesnt spend what they dont have zn has never had more cl's than ca's during my observation
even after an impairment charge of over 30M due to the exploratory well not being commercially productive,zn still has a positive ratio of total assets to total liabilities ,with 12.521 M assets and only 7.292 M total liabilities
and if zn finds a commercial field w the 3d survey as a result of mj1, that impairment charge might be considered to be premature, but zn no doubt followed recognized GAAP accounting principals in declaring that impairment charge
and for investors who dont understand the background behind mj1 and the 3d survey,that charge may unfairly impact their views
just like looking for gas in offshore israel was a terrible idea right?
you can keep quoting the no oil in the shallow zones all you want- the oil was found in the deeper zones as i and others have shown from the 2 feb 2018 pr's and the aug 17 2018 disclosure below etc
they tested the deeper zones 1st bc thats where they found oil while drilling
from aug 17 2018 8k disclosure
Item 8.01 Other Events.
Zion Oil & Gas Confirms Active Petroleum System in Megiddo-Jezreel #1 Well In Israel
Additional Testing is Needed to Evaluate Reservoir Potential
DALLAS and CAESAREA, Israel, August 16, 2018 /PRNewswire/ -- Zion Oil & Gas, Inc. (NASDAQ: ZN) announces that it is completing the initial testing program of its primary zones located within the Triassic-age Mohilla Formation of the Megiddo-Jezreel #1 (MJ #1) well.
Zion’s President and Chief Operations Officer, Dustin Guinn, makes the following statement concerning the MJ #1 well:
Zion has a sincere desire to be transparent in the details of our operations with our shareholders, for a number of reasons. Most of our shareholders share a passionate alignment with the vision of Zion that extends beyond financial success. We view our shareholders as partners in this journey, which has been difficult to say the least. As a result, this operations update will be longer and more detailed than most and will be subdivided to try to answer some of the most common questions.
Did We Find Oil?
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
Is the MJ #1 a Successful Well?
This is a question that can be answered in a number of ways:
1. In considering the success rate of wildcat wells, with little to no offset data, in our opinion the MJ #1 could be considered a geologic success as follows:
a. A very favorable Thermal Gradient has been shown to exist;
b.
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.
2. Is the well commercially successful with the information that we currently have, as of the writing of this update, during the testing of the deepest zones of interest? The answer is no. The drilling and testing on this well was much more costly than we expected, and as of today cannot be considered commercially successful.
What Caused Delayed Testing Results?
Testing of the MJ #1 well has taken longer than anticipated for a number of reasons, some of which we wish to outline:
1. We made the decision to test this well only during daylight hours. Given that it was a wildcat well, we decided to only operate during daylight hours and emphasize safe operations over time and cost.
2. We continued to observe Shabbat, which limited testing operations from 7:00 am Sunday morning through 7:00 pm Friday evening.
3. In our opinion, the most impactful operational delay resulted from what appears to have been ineffective casing guns and charges, sourced locally in Israel and initially used to perforate all the zones. We purchased additional casing guns and charges from the United States at the commencement of testing, which fortunately, allowed us to re-perforate all the zones of interest to achieve injectivity and properly stimulate the well.
4. The primary zones we have been testing are all located at depths greater than 16,000 feet. Every time we had to run in the hole and out of the hole took, on average, four days.
5. Every time we wanted to isolate a particular zone to test, we had to install an isolation tool called a packer, which contains rubber elements. Due to the very high well temperature, these packers would only last, on average, approximately five days. When they failed, we had to pull the pipe out of the hole and replace the packer, which added, on average, four days.
2
What are the Future Plans?
1. We have gained a tremendous amount of geological knowledge, but there are still a lot of unresolved questions that need further evaluation:
a. 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.
Management, along with all of our staff, want to sincerely thank you for your continued support. This mission has been one of the most difficult challenges we have undertaken, and we are not done yet. We also recognize that we are completely shareholder funded and as a result, this is your company . There is so much left to do, and it is an honor to represent our shareholders in this mission.
so the pic below is the one you refer to
draw a line from leviathon through there to zn's concession
the leviathon is 5000-7000 meters mj1 is 5060 meters
from 10k "The Megiddo Jezreel #1 (“MJ #1”) exploratory well was spud on June 5, 2017 and drilled to a total depth (“TD”) of 5,060 meters (approximately 16,600 feet)."
as i've quoted from disclosures before the light oil they found was practically in the very bottom -16415feet - to ? with td at 16600 -but due to troubles drilling by the time they got that deep dustin said june 5 at stockholder meeting that it was like drilling with a wet noodle so i dont think they could go any farther- believe dustion said recommended torque was 200 units and they had a torque at bottom of ca 400-440 units
i dont know how deep genies golan wells were -but to the sw the meged wells had a strata of 4000m of limestone before they reached oil- one such well was 4700 meters -dont know how deep the others were
you mentioned something like 20000 ft before -i agree with you and jyran and others in suspecting the oil is deeper than the 16600 of the mj1 well-as it may be at zn's elijah #3 well,as jryan mentioned
it is more likely that delek would attempt a buyin of a % of zn's concession since delek owns ca 45% of leviathon
and delek bought a 70% interest in the concession immediately to ZN'S west-as well as a % of another onshore israel concession to the sw
most likely believing there's a fair chance the leviathon strata of 5000 to 7000 meters deep continues under onshore israel
remember that kyoil had said before we knew the well was not commercially productive that he had never seen a situation where a well was dry(not commercially productive in oil parlance circles)when even 2 of the 3 conditions encountered by that time were present-
so the question to me is where is the commercial field hiding,and by whom,if you get my drift
at least one other poster said he was told -if u get my drift-that it was a huge field-and when i asked(based on kyoils statements-is this really true or happening)i got the indication of a commercial field also- didnt specify where -didnt specify mj1- but had to assume it was the current concession-otherwise an indication that they had a commercial field would be meaningless since this is the only conession they have,though a very large one in israel terms at 99000 acres
however, due to their financial constraints -unless delek or somebody else partners to some extent -they are probably left w only one more try before their concession license expires- and what would that mean?- where would zn go from there bc now competition for licenses(due to new discoveries and a huge investment in the meged operation plus deleks onshore interest) is more severe
and also remember the videos of the june 5 stockholder meeting-a witness I have NEVER EVER seen in a business context andraley elsewhere if u know what i mean-would that witness and persistence of 19 years(over 30 yrs for jb)be rewarded or punished????-just food for thought
and those who personally met the officers june 5 2018 said they were the real deal
the timing, with an israeli friend in the white house and moderate arab countries tacitly allied w israel against iran,is also momentous and may not exist 10 years or even six years from now-even 2 years from now if the adversary gets his way
if he tarries that long israels need for oil will decline in 20 years(even 10 years or less) as electric vehicles etc supposedly take a large share of the market and as usa oil exports increase in coming years -assuming the usa remains friendly
so what does the BIG geo political etc picture say???? is the one who knows still in control-of course he is-so what is up his sleeve? isnt that the big question-is it to allow zn to be pummeled?
from p.1 of the 10k
"During the fourth quarter of 2018, the Company testing protocol was concluded at the Megiddo Jezreel #1 (“MJ #1”) well. The test results confirmed that the MJ #1 well does not contain hydrocarbons in commercial quantities in the zones tested.
...While the well was not commercially viable,"
...focused 3D seismic imaging shoot of approximately 50 square kilometers surrounding the MJ#1 well"
[this has now been increased to 60 sq km as i just noted from p.6 of the schedule 14a]
"...Our branch office’s address in Israel is 9 Halamish Street, North Industrial Park, Caesarea 3088900"
from p.5 of 10k:
As of December 31, 2018, we had 25 employees and contractors of whom all but four are on a full-time basis. Included in this number are certain contractors who provide services to Zion on an ongoing basis. Of the 25 total headcount, 16 work out of our Dallas office and 9 work out of the Caesarea, Israel office. None of our current employees or contractors are subject to any collective bargaining agreements, and there have been no strikes.
We regularly utilize independent consultants and contractors to perform various professional services, particularly for services connected to drilling operations, such as specialized drilling, health and safety, engineering, logging, cementing and well-testing.
so thats nine employees and contractors who regularly work out of the israel office -not one or two
from p.4 of 10k:
The MJ#1 well provided Zion with information which Zion believes is important for potential future exploration efforts within its license area. As with many frontier wildcat wells, the MJ#1 also left several questions unanswered.
While not meant to be an exhaustive list, a summary of what Zion believes to be key information learned in the MJ#1 well is as follows:
1. The MJ#1 encountered much higher subsurface temperatures at a depth shallower than expected before drilling the well. In our opinion, this is significant because reaching a minimum temperature threshold is necessary for the generation of hydrocarbons from an organic-rich source rock.
2. The known organic rich (potentially hydrocarbon bearing) Senonian age source rocks that are typically present in this part of Israel were not encountered as expected. Zion expected these source rocks to be encountered at approximately 1,000 meters in the MJ#1 well.
3. MJ#1 had natural fractures, permeability (the ability of fluid to move through the rock) and porosity (pore space in rock) that allowed the sustained flow of formation fluid in the shallower Jurassic and lower Cretaceous age formations between approximately 1,200 and 1,800 meters. While no hydrocarbons were encountered [ in these shallower zones], Zion believes this fact is nonetheless significant because it provides important information about possible reservoir pressures and the ability of fluids to move within the formation and to the surface.
4. MJ#1 encountered oil in the Triassic Mohilla formation which Zion believes suggests an active deep petroleum system is in Zion’s license area. There was no natural permeability or porosity in the Triassic Mohilla formation to allow formation fluid to reach the surface naturally during testing and thus the MJ#1 was not producible or commercial.
5. The depths and thickness of the formations we encountered varied greatly from pre-drill estimates. This required the MJ#1 to be drilled to a much greater depth than previously expected. Zion has tied these revised formation depths to seismic data which will allow for more accurate interpretation and mapping in the future.
A summary of what Zion believes to be some key questions left to be answered are:
1. Is the missing shallow Senonian age source rock a result of regional erosion, or is it missing because of a fault that cut the well-bore and could be reasonably expected to be encountered in the vicinity of the MJ#1 drill site? Zion believes this is an important question to answer because if the Senonian source rocks do exist in this area, the high temperatures encountered are sufficient to mature these source rocks and generate oil.
2. Do the unusually high shallow subsurface temperatures extend regionally beyond the MJ#1 well, which could allow for the generation of hydrocarbons in the Senonian age source rock within our license area?
3. As a consequence of seismic remapping, where does the MJ#1 well lie relative to the potential traps at the Jurassic and Triassic levels and was the well location too low on the structures and deeper than the potential hydrocarbons within those traps?
As a result of these unanswered questions and with the information gained drilling the MJ#1 well, Zion now believes it is prudent and consistent with good industry practice to try and answer some of these questions with a focused 3D seismic imaging shoot of approximately 50 square kilometers surrounding the MJ#1 well.[now changed to 60 km}
The Company has commenced preliminary scouting and survey design to help identify the geologic boundaries of the proposed 3D seismic survey. Additionally, Zion held initial meetings with potential vendors to aid in the 3D seismic planning and acquisition process. Once the survey design and surface layout are completed, Zion intends to acquire the necessary government permits and negotiate potential surface damages to crops, irrigation piping, and other surface features. Zion believes it will be necessary to import seismic source equipment and autonomous wireless geophones (to record the signal) to acquire the 3D data. Once data acquisition is completed, interpretation is the final step and will involve integration with, and modification of, previous work by Zion technical staff. Zion’s ability to fully undertake all of these aforementioned activities is subject to Zion raising the needed capital, of which no assurance can be provided. [end of p.4 material]
btw, i believe it was the last 10k which noted that nine zn employees work out of the israel office
and during special periods of time there may be more working out of the israeli office
from p.6 of the schedule 14 (proxy info)
again, note,
1) zn does not say that no hydrocarbons were found -which would violate many PR's and disclosures -only that not found in commercial quantities yet-the idea of the 3d survey is to find commercial quantities
2) that the 3d survey area has increased from 50 to 60 square km-previous disclosures always said approx 50 square km- this could be the result of the increased activity that surrounds zn's concession to the west and southwest
as noted in paragraph 3 below, the survey requires quite a lot of work -
During the fourth quarter of 2018, the Company testing protocol was concluded at the Megiddo Jezreel #1 (“MJ #1”) well. The test results confirmed that the MJ #1 well does not contain hydrocarbons in commercial quantities in the zones tested. While the well was not commercially viable, Zion has learned a great deal from the drilling and testing of this well. We believe that the drilling and testing of this well carried out the testing objectives which may support further evaluation and potential further exploration efforts within our License area.
As a result of these unanswered questions and with the information gained drilling the MJ#1 well, Zion now believes it is prudent and consistent with good industry practice to try and answer some of these questions with a focused 3D seismic imaging shoot of approximately 60 square kilometers surrounding the MJ#1 well.
The Company has commenced preliminary scouting and survey design to help identify the geologic boundaries of the proposed 3D seismic survey. Additionally, Zion held initial meetings with potential vendors to aid in the 3D seismic planning and acquisition process. Once the survey design and surface layout are completed, Zion intends to acquire the necessary government permits and negotiate potential surface damages to crops, irrigation piping, and other surface features. Zion believes it will be necessary to import seismic source equipment and autonomous wireless geophones (to record the signal) to acquire the 3D data. Once data acquisition is completed, interpretation is the final step and will involve integration with, and modification of, previous work by Zion technical staff. Zion’s ability to fully undertake all of these aforementioned activities is subject to raising the needed capital, of which no assurance can be provided.
did anyone else notice zn has increased the area to be surveyed from 50 to 60 square km
re the 3d survey the survey will not be limited to one truck at one time for just one spot-thats insane
we dont yet know how many vibrator trucks will be used and though thankfully most of the area is rural they may still have to deal w a number of landowners,even though much of the area looks like it is included within kibbutzs
does anybody have a goggle map of the area around the well to save me time-if so post it
15
theres been a lot of misleading info re exec compensation
the entire subject matter,like everything else, is intended to get eyes off the work zn is doing in zn's effort to create shareholder value- zn officers dont go on drunken joyrides throwing shares into the street
as per other co's exec salaries zn's exec salaries are on the low side as proxy materials show
every discipline has a pay scale-the oil industry is a well paid occupation- I've talked with blue collar ppl who worked on wells and they indicate a very high rate of pay for the blue collar work in the industry
the salary for john brown-EXEC CHAIRMAN- was only 249,000 each of the last 3 years-2016,2017 and 2018
most ppl get benefits from the company they work for-that is normal!!! -and so they get benefits also-if they didnt they would be the only execs in the world who did not!!!!!-so whats the trumped up problem???? for execs that includes expense accounts for travel -thats normal!!
a lot of their pay comes from stock options-note their filings indicate:
1)they've had an agreement since may? 2017 (i believe was before spudding the well june 2017) not to sell their stock (victor gave some as a gift to mostly charities)
and thus the value attributed to stock options-which is apparently the market value at the time the options were given is not the actual amount they received
thus,especially in combination w their agreement since may? 2017 not to sell stock means the execs stock value fell just as much as our stock value -and they didnt actually receive as much as the listed stock value
note -you havent seen any disclosure forms re execs selling any stock have you??? thats bc execs didnt sell any stocks (victors gifts did not accrue to him and theirs determines those rules which i'm sure victor as a lawyer and former judge followed)
so when stock e.g was $4 pps their stock options were apparently valued at pps at time options were granted or if not at the time options were exercised - but the stock has fallen many times since then as we all know and are constantly reminded by the same who shout about exec stock pay-and thus the values listed as compensation will greatly exceed what execs actually received-unless the stock greatly appreciates by the time their self imposed restriction on selling stock expires
so their actual pay -since stock pps has fallen so much is much less than listed-this is of course an incentive to work harder to create stock holder value
due to other matters they have to confront at this point in time these are not just 8-5 jobs either
as zn notes in the proxy materials zn purposefully uses stock options to greatly reduce the companies cash outlay for compensation- this is a normal practice!!! nothing unusual about these things as implied
the only unusual things are:
1)restricting exec's ability to sell any of their stock since may?2017- this restriction i believe was in connection w spudding of the well and logically was part of an attempt to reduce speculation and thus conserve stock holder value
2)in addition to the restriction above,filings indicate general policy prohibiting execs and maybe others from selling over half their stock-something that doesnt even come into play for execs until their self imposed restriction on selling any of their stock expires
the proxy materials emphasize the policy to use options to reduce cash outlays and imply zn will increase their efforts in that regard
-thus instead of increasing salary they might increase stock options- when their self imposed restriction against selling any of their stock is over they may sell some stock into the market just like any stockholder but that is not an expense to ZN
EXECUTIVE COMPENSATION
The following table sets forth the total compensation received for services rendered in all capacities to our Company for the last three fiscal years, which was awarded to, earned by, or paid to our Executive Chairman, Chief Executive Officer, Executive Vice Chairman/President/Chief Operating Officer and Chief Financial Officer.
Name and Principal Position Year Salary Bonus Option awards (1) All OtherCompensation (2)Total
John M. Brown, 2016 249,000 65,000 161,817 99,067 574,884
Executive Chairman
2017
249,000
30,000
239,750
113,669
632,419
2018
249,000
30,000
56,750
111,513
447,263
Victor G. Carrillo,
2016
250,000
50,000
149,569
55,374
504,943
Chief Executive Officer
2017
250,000
137,000
61,542
448,542
2018
166,667
56,750
148,524
371,940
Dustin L. Guinn
2016
125,000
*
176,946
22,478
324,424
Executive Vice Chairman
2017
250,000
171,500
44,147
465,647
President/COO
2018
250,000
56,750
354,764
Michael B. Croswell Jr.
2016
56,250
*
154,062
25,530
236,869
Chief Financial Officer
2017
150,000
1,026
178,200
36,549
364,749
2018
175,000
80,200
43,731
298,931
____________
glad to see you posting more again
i guess oil exploration is suppose to be the only subject where experience doesnt count
i doubt that any of the directors would be happy going back to the relative inexperience level they had decades ago
no matter how smart a person is, the skill, and for rare individuals the wisdom they gain with age, is priceless, as some book says
victory belongs to those who dont give up!
try again
proxies- so the proxy info was filed w the sec
https://www.otcmarkets.com/filing/html?id=13366856&guid=Twy3UafHxNwEAyh
the proxies contain the subject matters noted on .p 49 of the 10k and the detail are separated from the 10k for various reasons
re executive compensation ZN pays its officers less than comparable companies- the proxy materials exec compensation materials point out they need to have high enough pay to attract exec talent
truth is from what they've laid out they are not completely competitive in that regard -that those who work as execs for zn are willing to take less salary bc they believe in the vision
i dont see any pay raises
stock options are part of a normal pay structure which reduces cash output
they are focusing on increasing longterm value while reducing cash outlays to execs etc
there has been no evidence of any bankruptcy -especially in light of shouts of affinity scam -those two things are polar opposites-but zn does have an especial ability to raise money bc 100's of millions share the same goal and zn raised over 18 mill on an annualized basis last year
ZN is a small company focusing on 1 project at a time.
That project is now the 3d - a lot of work has gone into determining the parameters of the 3d,choosing 3d methods and vendor(s),and perhaps discussing w landowners re any mitigation to damages on their property.
Negotiating is always difficult for reasons i've described -so they have kept busy.
Unless they get a financial shot in the arm -as in a partial buyin-or make a commercial discovery early on in the 3d survey,the next 9-10 months will be focused on the 3d
Sounds like Dustin would have loved to stay but putting zn first he recognized Robert Dunn-a friend of his from his Viking days -was better qualified to do the 3d survey process on ZN's end
- so rather than attempting to do something in which he had far less experience than vikings 3d expert Robert Dunn he and ZN brought Dunn in as Director of Operations(de facto COO)a role Dustin fulfilled in the drilling process
in a bigger company with multiple ongoing operations Dustin could have stayed while Dunn was brought in to handle this project-but thats how big companies get top heavy
so no evidence of rising exec compensation-just the opposite,with dustin leaving to save zn money since he brought in Robert Dunn as a 3d survey specialist
the proxy etc materials are long for reasons of transparency and legality- 100 years ago this was all done in the cigar smoke back room-
subjects such as buyins may yet come up but i suspected even if there were negotiations for such they would not be complete in time for proxies,in which case they may still come up at the stock holders meeting though again many companies dont take chances with those things re a vote
this is why they would make the COO change now. The contract for the 3d survey is due to be finalized by Apr 30,as per the schedule approved by the Israeli agencies in charge.
Better to have one COO dealing with the 3d on ZN's end from start to finish.
So they make the change official before the contract is finalized and presumably signed.
Presumably we will have a PR and 8k re the 3d contract in the next few days,as well as proxy and stockholder meeting notice by Apr 30, as per the 10k,which provides for such within 120 days of Dec 31, as I've posted from the 10k before.
there is no evidence whatsoever that senior executives salaries are going up.
Just the opposite- wording below implies John Brown continues at same salary while taking on CEO duties. Meanwhile the vice chairman of the board position held by Dustin is eliminated,logically saving ZN more money.
Dustins move also seems logical. Dustin is a drilling specialist. Robert Dunn is a geophysical specialist and has run Vikings geophysics for many years. Dustin came to ZN from and as CEO I believe of Viking,so Dustin and Mr Dunn have known each other for a long time.
Neither Dustin nor ZN expected to be doing a 3d survey until ca late November,2018. They found oil in Feb as per 2 Feb PR's and as per an Aug 16 PR filed Aug 17 and as per the 3q 10q and the 3-12-19 10k.
Their small acid job produced 90-110 barrels of oil water and completion fluid but was not commercially productive.
Light sweet oil-the good kind- was found in the 16415 to 16500 triassic layer just 100 feet from td of 16600 or 5060 meters,so there is a good chance the oil is deeper as it is offshore at the huge leviathon site where product is 5000-7000 m deep.
Delek thinks there's enough chance that the leviathon strata -and delek owns ca 45% of leviathon- to buy 70% of the license adjacent to ZN to the west!!!!!
One supposed slight by Dustin in answering inquiries from one stock holder- dont know what is was -while he was under a lot of pressure for news from stockholders while confronting countervailing considerations from the swamp and noise does not suddenly turn ZN into a bad actor. You can tell from Dustins resignation letter that he has not joined the dark side. I've risked my own life many times to literally save lives from cults only to have such saved persons turn against and try to kill me. So you cant let comparatively very minor disappointments rule your life without turning back yourself.
Dustin and ZN have probably been talking to Robert Dunn since November and configuring what each others roles could be.
Viking is a bigger company than ZN from what I've seen,drilling throughout eastern europe africa and the middle east and perhaps other areas-will have to dd Viking some more-Dustin was managing the drilling of many wells at the same time for viking.-Other than that will have to dd as i said.
Jryan-if you know Vikings call letters and or exact name let me know.
It is a good thing when a small company like ZN can attract personnel from larger companies.
Robert Dunn has 26 years of senior management experience and a cushy well worn job at Viking,heading their entire geophysical operations since 2012 and portions of their territory for years before that,with 7800 sq km of 3d surveys and 10000 sq km of 2d
So Robert is an excellent choice as COO for the 3d survey.
Since Dustin and Robert both worked for Viking together and Robert was Vikings geophysical specialist while Dustin was a drilling specialist,that means that Dustin did not take charge of 2d and 3d surveys at Viking-unless its was before 2012 in a different theater of operations than Robert was in charge of.
So what should Dustin do when ZN now needs a geophysical specialist at a miminum as COO.
Should Dustin selfishly hold onto his gravy train track-where he was being groomed for the Chairman of the board-or should he step aside and let a geophysical specialist takeover as COO(Director of Operations).
Dustins good hearted motives are clear from both his onboarding letter and his resignation letter and from the videos of the June 5 stockholder meeting.
Its sad to see him go FOR NOW- who is to say he wont be back when they make a commercial discovery and need a drilling specialist again???!!!
Look forward - his departure does not mean the sky is falling!
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(i) On April 12, 2019, Zion Oil and Gas, Inc. (the “Company”) was advised by Dustin L. Guinn that he is resigning from his position as Chief Executive officer, President and Vice Chairman of the Board of Directors (the “Board”) of the Company, effective immediately. Mr. Guinn’s resignation is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Mr. Guinn intends to remain available through May 10, 2019 to assist the Company in the transition process. A copy of Mr. Guinn’s resignation letter is attached as an exhibit to this Current Report on Form 8-K.
Item 8.01 Other Matters
Robert W.A. Dunn has joined the Company as Director of Operations, effective May 1, 2019. Mr. Dunn’s impressive resume includes over 26 years of senior management and field operations focusing on technologically driven seismic acquisition across the globe. During the past decade of working in the Eastern Hemisphere, Mr. Dunn has acquired more than 7,800 square kilometers of 3D and 10,000 kilometers of 2D seismic surveys which have helped exploration and production customers make informed decisions in their exploration programs. Mr. Dunn will be overseeing the Company’s planned acquisition and processing of 3D seismic data, in addition to other operational matters as they arise. A copy of Mr. Dunn’s biographical information is attached as an exhibit to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
(ii) In order to streamline the organizational structure of the Company with the departure of Mr. Guinn, on April 12, 2019, the Company’s Board appointed John M. Brown, the Company Executive Chairman of the Board, as the Chief Executive Officer. John M. Brown, age 79, is the founder of Zion Oil & Gas and has been a director and Chairman of the Board of Directors of Zion since its organization in April 2000. Mr. Brown was appointed Executive Chairman in January 2010. Mr. Brown, previously served as the Company’s Chief Executive Officer from April 2000 to September 2004 and as President from April 2000 to October 2001. He was also appointed as Interim Chief Executive Officer on October 18, 2012 and on January 1, 2014. Mr. Brown will continue to serve as the Executive Chairman. Mr. Brown has extensive management, marketing and sales experience, having held senior management positions in two Fortune 100 companies - GTE Valeron, a subsidiary of GTE Corporation and a manufacturer of cutting tools, where he was employed from 1966-86 and served as the corporate director of purchasing, and Magnetek, Inc., a manufacturer of digital power supplies, systems and controls, where he was corporate director of procurement during 1988-89. Mr. Brown holds a BBA degree from Fullerton College. Mr. Brown will continue to serve under the terms of his existing employment agreement with the Company.
(iii) On April 12, 2019, the Company appointed William H. Avery, currently Executive Vice-President, General Counsel and a non-employee director on the Company’s Board, as President of the Company. William H. Avery, age 71, was appointed to the Board as a non-employee director, effective September 1, 2013. From 2001 to 2003, Mr. Avery worked on a broad variety of administrative, financial and legal matters for the Company. He served as Vice President of Finance and Treasurer commencing 2003 until 2007. He worked full time as Executive Vice President and Treasurer and as a director commencing in 2007 with responsibility for administration, finance and legal until 2010. From December 2012 to his current appointment, he has been retained as General Counsel and from October 2018 as Executive Vice-President to his current appointment under an independent consulting contract. Mr. Avery has a BBA in Finance and Economics from Southern Methodist University and a Juris Doctor from Duke University. Mr. Avery will continue to serve under the terms of his existing employment agreement with the Company.
There are no family relationships among either of Messrs Brown and Avery and any director or executive officer of the Company, and other than as described in this Item 5.02, neither Mr. Brown nor Mr. Avery have any direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Dustins resignation letter
April 12, 2019
John Brown
Chairman of the Board of Directors
Zion Oil and Gas
12655 North Central Expressway, Ste. 1000
Dallas, TX 75243
Dear John Brown and the Board of Directors,
The last three years have been a true journey of faith for me and one that I have absolutely loved. I felt that, as was written in Esther 4:14,“.…you have come to your royal position for such a time as this.” I felt as though God called me to Zion to help drill and complete the MJ#1 well.
Part of being a leader, though, is the recognition that the organization which you lead has needs that change through time, and now is such a time, a time of transition. It therefore seems prudent for me to step down so that I can support the Company’s efforts to attract additional talent that will help accomplish the Company’s goals for its next stage of exploration. To that end, I believe Rob Dunn meets that requirement and will be critical to the success of this next phase.
I hereby resign my positions as CEO, President, COO and Vice Chairman of the Board, effectively immediately. I love Israel, believe in Zion’s project and the science supporting it, and will always be aligned with the vision of Zion and its mission.
Zion Oil & Gas was created for a purpose, and the purpose is bigger than any one person. The continued miracles that the Lord has done are evidence of His blessing on this company (Exodus 34:10-11).
I am indebted to the family at Zion and each of its shareholders and supporters and cannot wait to see how God will continue to use Zion to share the Gospel of Jesus Christ through its exploration efforts.
Sincerely,
Dustin Guinn
“I will bless those who bless you, And I will curse him who curses you; And in you all the families of the earth shall be blessed.”
Genesis 12:3
Exhibit 99.2
ROBERT W.A DUNN.
Profile
Began career in seismic acquisition 26 years ago working in all phases of acquisition from field operations to presidential and directorship roles in onshore drilling and geophysical related services spanning multiple continents. Mr. Dunn’s expertise has been focused on obtaining optimal results during exploration and developmental phases in frontier regions while advising and implementing program design and execution with geology and geophysics teams in order to obtain safe, and commercially effective results.
Experience
President Geophysical Viking Geophysical Service/Acoustic Geophysical Services — 2012- Present
Mr. Dunn was responsible for managing all aspects of geophysical exploration with operations in Europe, Turkey and Africa. During peak operations Mr. Dunn managed in excess of 500personnel and 6 crews. Having acquired over 7,800km2 of 3D along with 10,000km plus of 2D surveys in multiple landscapes with total contract values excessive 230 million USD Mr. Dunn focused on operational and financial leadership. Mr. Dunn continues to apply new technology and acquisition methodology with contractors and field management to obtain optimal exploration objectives for the E&P sector.
Managing Director Central European Drilling — 2013- Present
Responsible for the overall performance of the European drilling division. Execution of strategy and planning from the Board of Directors. Formulating and implementing required policies to achieve plans with an operational footprint focused in Hungary, Romania, and Bulgaria.
Managing Director Viking Oilfield Services N.Iraq — 2015-Present
Working with operations teams in N.Iraq to achieve all strategies and goals defined in yearly business plans focusing on growing Viking’s client base promoting increased asset utilization.
Technical Operations Manager — 2009- 2012 Viking Geophysical Services.
Introduced first autonomous wireless geophysical crew for primary E&P customer base which helped grow the exploration base during which I managed the acquisition of over 2200km2 of 3D which aided in the discovery of new basins thereby allowing E&P to make informed decisions on profitable exploration drilling.
Project Manager — 2000- 2006 CGG Veritas.
Responsible for the management of multiple programs in diverse regions ranging from Arctic to Jungle operations in South America. Mr. Dunn was responsible for all field operations in remote regions inclusive of logistics and acquisition operations. Mr. Dunn was also responsible for all activities based outside the corporate office reporting to the operations management teams and president.
Technical and Recording Crew Manager -1993-2000 Veritas.
Mr. Dunn was integral in the identification and promotion of new innovative processes helping Veritas achieve the vision becoming the largest most trusted name in the geophysical industry. Was instrumental in the development of new methods of geophysical acquisition throughout the Canadian Rocky Mountains including the utilization of helicopters to aid in the deployment and retrieval of seismic acquisition equipment
Other:
Member of the Society of Exploration Geophysicists. European Association of Geophysical Exploration.
also as i previously showed from the 10k the proxies and notice of the annual shareholder meeting are due by apr 30-some companies have already sent out notice
anything to be voted on by shareholders should be noted at the same time,except for last minute items
most companies do their business behind closed doors and dont leave things up to chance - i.,e.,shareholders,and its always possible for any negotiations re a possible buyin interest to take too long to include in a proxy,even if zn would intend to include holders in that position
have no idea yet whether thats an actual consideration but delek did buyin 70% of the adjacent concession to the west
-why did delek do that- probably bc they think the huge offshore fields continue onshore -and a line through such strata would continue to zn's concession
somebody also bought 5% of a concession near the dead sea in ca 2015-so small buyins occur also
i doubt that zn would sell a large interest but in consideration of stockholders its unlikely they would want to fundraise several more times at 2 million per(of course pps has doubled since december)raise to finish the 3d survey
and they are conscious of the dec 2, 2020 deadline to convert the license to a 30 yr lease renewable for another 20 years,which has to play into thier thinking
so it will be interesting to see zn's strategy, which would possibly become more clear in proxies and more clear at the stockholder meeting, probably late may or early june
been over this many times
if zn's pps reaches one dollar for 10 consecutive bus days by jul 8 clock is reset
if zn meets alternative listing standard by jul 8 zn gets 180 more days to raise pps to one dollar
pps has been rising -has more than doubled since its dec low-when a lot of companies bottomed due to agressive fed raising interest rates- no more raises predicted in interest this yr -some say fed may even lessen interest -and feds reducing their balance sheet exposure ends by sept-i.e no more tightening of economy
and oil has risen significantly since december
so at this rate of pps since dec pps would reach one dollar by july
a significant amount of oil interest in nearby areas is occurring which is encouraging for zn
and their could be an additinoal investment in zn or its license as occurred 20 mikes away when delek bought a 70% interest in an adjacent northern onshore israeli concession- and who is delek -only own ca 45% of the huge israeli offshore leviathon gas fields
so there are a number of things which could bring pps back to one dollar by july-and if the alternative min standard is met by july 8 they have 180 more days
I echo cowboyeees comments.Good to see you post again here buddy.
General trend now up after the fall from the hungry buyer of mar 12 and 8.6m shares that day and 1.20