Summary of Public Info From Zion Oil and Gas
Prior to drilling, analysis of a complete petroleum system with a deep source and migration path to a reservoir structure was interpreted by both Zion and a 3rd party engineering report to have potential of very significant oil-in-place.
During drilling, the rock types encountered confirmed the reservoir structure. And the very high gas pressure encountered confirmed both reservoir integrity and reservoir good communication with the source. Oil free flowing to the surface confirmed it was not just a natural gas find.
After drilling, analysis of logs by world-class service providers confirmed reservoir structure suitable for hydrocarbon production, and identified 3 primary zones to flow test. Deepest primary zone has been tested, and the other two have been combined for testing, which is likely nearing completion.
Assessment of Info Provided
I've never seen or heard of a dry hole under these conditions. In fact, these are the conditions that point to a huge find.
Others may have a different assessment due to:
1. Distrust of Zion management's motivation or competence. We will just disagree on this one, and you are released to invest elsewhere as you will not change my mind nor will I change yours.
2.The delays from announced schedules in drilling and testing. I'd like to see results announced timely like everyone else. But I've also been in their shoes trying to implement a complex operation and know that it's very difficult to predict timing and meet everyone's expectations, including communication. In any event, delays (including geopolitical) will not determine the eventual size of the find. So, I'm not preoccupied about the timeline, but do expect to hear something prior to Aug 5. Also, I would be glad to hear anyone else's assessment on how the delays affect the eventual size of the find. Delays because Zion management is dishonest and wants to squeeze cash from investors does not count here as that falls under #1.
3. The pre-drilling, drilling, and post-drilling data provided does not indicate with very high confidence that MJ#1 is commercial. If someone knows of a well with the same conditions of MJ#1 and it was NOT commercial, I would like to hear about it as that info would change my outlook. Being able to verify that such a well existed (same conditions, but was dry) is the only evidence that would cast doubt on MJ#1 being a huge discovery. Stating the data provided is false does not count here as that falls under #1.
4. Other reason that I didn't think of for not anticipating a huge discovery. Glad to hear anyone's theory as long as it doesn't fall back into #1.
AI
