Zion Oil & Gas Inc (ZNOG)

[KyOil]

Risk Factor #4 - SEC Compliance

We now move to the next risk factor since there seemed to be agreement that risk factor #3 was almost nil. No one disagreed anyway.

It is difficult to assess what the issue is with the SEC since only information was asked for and no charge was placed on ZN. The worst case is that the inquiry will lead to an investigation whether ZN over hyped their stock price. If that is the case, it seems the easiest way to have the charges dismissed is to announce the reservoir, if discovered. So, it seems the conclusion is that the SEC would not pose any risk towards the discovery. It might pose a risk to ZN if the well is non-commercial.

Thinking about risk factor #2, funding, it seems this is where the SEC inquiry could have the most impact. If investors who would otherwise buy shares from ZN direct would now not do so because of SEC uncertainty, then this increases the funding risk.

What is everyone thoughts of SEC risk?

Here is the scorecard for risk factors assessed so far: