Zion Oil & Gas Inc (ZNOG)

[KyOil]

Risk Factor #2 - Finances Available to Drill And Test The Well?

Lets move to discussing risk factor #2 since everyone seemed to agree (no one objected anyway) that risk factor #1 is no longer a risk.

There was considerable risk in the funds being available to drill and test MJ#1 in the spring of 2017:

1. Drilling was started without funds to complete the well on the original (i.e. optimistic) schedule.

2. With not enough funds to finish the basic drill/test plan, then obviously no funds were available for contingencies like:

a. Schedule days - pay rig and overhead anyway (did happen)
b. Having to order unforeseen material (did happen)
c. Environmental cleanup (fortunately did not happen)

At this point, the well is drilled which accounts for most of the required funds. Therefore, most of the risk is gone. However, there is still funding risk as testing is not complete. Testing has been delayed for various reasons and the last communication from ZN regarding funds was that expenses were covered through the end of July. It's now August, so funds must be tight.

As we go through the remaining risk factors and look them all over to summarize, it will probably be concluded that this is the highest remaining risk, or at least tied for the highest. Therefore the direct stock purchase plan is the company's life blood right now. Perhaps also a bridge loan type of arrangement with a friendly source of capital is keeping things going.

Any opinions of the risk at this point of funds lasting through testing?