Zion Oil & Gas Inc (ZNOG)

[Imperial Whazoo]

Having reviewed, once again, the 10-q filing, it needs to be pointed out that Zion actually has only 30 days after the "run-out-of-money" date.

They have a Nov 1, 2018 deadline to submit a development plan for spudding well #2. They have until Nov 2019 to actually SPUD well # 2, but they have to submit a plan by Nov 1, 2018, or they will not be able to take advantage of the government licence that allows them to do a second well.

They will generate a PR containing the test results for well #1 ASAP, in my opinion, for the following two reasons:

1.) They run out of money in about 45 days (Sept 30, 2018)

2.) They have to work up a formal development plan for development of the second well 30 days after that (Nov 1, 2018).

Suppose you are Zion's management team and you needed to raise money to legitimize a development plan that you have to have submitted by November 1, 2018, and further suppose you have openly admitted, via a timely 10-q filing, that you run out of money on or about September 30, 2018. Does anyone actually think it serves any purpose for the management team to delay announcing that well #1 is commercially viable? Will it be easier to raise money if they generate a PR without delay, or will investors respond better to delaying the well test results announcement? What BEST serves the goal of raising the money to spud well # 2: having the greatest amount of time or limiting the time during which they can raise money?

If well #1 is commercially viable and they want to raise money, given the fact that they admit to being on the brink of having zero dollars in the bank, it is illogical to think they will delay the PR announcing well test results for well #1.

Simple as that, IMHO.

Also: in another recent post, I point out that Zion could have gotten an extension, rather than filing the 10-q. This is still a VERY important point because, if they were fraudsters, they could have hidden their very pressing time and money constraints. They could have hidden the "run-out-of-money" date via an extension, and they did not do so. And they could have likewise hidden the Nov 1, 2018 plan-submission-deadline via the self-same extension. They actually filed AHEAD OF TIME.

I began working thru the details of all the implications of the 10-q filing because I wanted to decide for myself whether there was anything behind the fear-mongering. After all, I have $$$ on the line, and in the abstract, it follows logically that it is always possible for companies to be carefully crafted frauds. Having re-read the pertinent parts of the 10-q filing, I think it is obvious that these guys will PR the well test results without delaying them.

So, my OPINION remains unchanged. We do not have long to wait. In a pretty short time, we should all know whether we have wasted our money or whether this little company is a tremendous investment.

Imperial Whazoo