Zion Oil & Gas Inc (ZNOG)

[tisdal]

docvienna, KyOil could answer first question better.

I have never worked in an oil patch. IMHO, it does not. The concept is to fire charges and stimulate the openings created to see if and how much oil will flow, hence, flow testing.

As to financing, I'm not an expert, but I would think it would depend on the reservoir size. This is partially what is taking so long IMHO. Zion has been clear that when they release the test results, they will be conclusive with no room for speculation. IMHO, that means tey will be Zion verified, third party verified, Israel verified. There will be no room for speculation at all. It is what it is.

From there, where the money comes from to take full advantage of the reservoir will be decide. I have speculated in the past that Israel would be financially involved. There is not an open door policy there. They are very strict and highly regulatory. This is also part of the reason for the long timeframe for drilling.

IMHO, Israel will want to own the midstream and build it out. Mainly because oil companies come and go, but the midstream is static. The other reason is the regulations that a company would have to meet in order to buildout the midstream. It would be next to impossible for a company to meet them. It would take a big effort to accomplish and i think only possible by the Israeli authorities under the guise of National Security to break through all the red tape. Remember that Israel requires 250K barrels a day. 100k of which is for the IDF.

If the reservoir is big enough, there will be quite a few wealthy investors running around to reinvest some of their profits. Mr. Brown alone holds over 1 million shares and his intent has never been unclear. There are other directors that would do well also. All of which are here to bring energy independence to Israel.

With a large enough reservoir, raising funds through rights offerings will not be a concern.

FYI: Since spudding the well, not one insider has sold a share without being under an SEC approved plan. All have been gifts and i do not believe all of those gifts together exceed 100k shares. Pretty impressive.

Also, the recent member of the board was issued options with a $4.00+ strike price. Either she plans to never exercise them or believes that price will be cheap when she does.

All speculative