Zion Oil & Gas Inc (ZNOG)

[microcaps1]

to summarize zn recently has had an excellent current assets (ca) to current liabilities(CL) ratio(CR),esp when u realize that over 50% of cl is a
Derivative or contingent liability (see Note 6) that will not come into play once zn finds commercial oil
so just as thier previous funds run out was conservative so is their estimate now- legla sec docs like 10q's require putting your worst foot forward
so funds, esp if dssp continues to provide funds, could allow them to finish testing


microcaps1 monday, 08/06/18 11:38:38 PM
Re: KyOil post# 24780 0
Post # of 27171

I never understood funds available to july 31 date

they had 7.1 M current assets as of Mar 31 10Q
3.28 M from rights offering
1 M??? from warrants
xxx from direct stock holder purchase program

so 11 plus million available from 3-31
while drilling expenses are as high as 2.5 m /month during drilling, expenses are far lower than when not drilling,right! well workers not working except for skeletal testing crew right?


if expenses are only 1/2 when not drilling 11M would last 8.8 months(at expenses of 1.25M/month)and that 1.25M normally includes expenses for current liabilities,which other than non cash payouts like derivatives were only ca 2.9M,of which only a portion would be paid since since 3-31,and includable in the 1.25 M expenses /month,unless they paid cash for BOP after 3-31

I have no idea whether ZN would do this but in many companies on these boards officers/directors defer salary at times or make a loan to the company


10q from 1st qtr
https://www.otcmarkets.com/filing/html?id=12738084&guid=c6dEU6Qfb4uuW3h
bold is as of mar31 of this yr- ignore the non- bolded previous yr

ideally current assets-ca- should exceed current liabilities- cl- so the current ratio-cr- of ca over cl is greater than one-a rather rare event for co's with no income, who often have negative working capital (cl's exceeding ca's)-in fact thousands of otc stocks have cr of .0001 to .1 etc
so zn has kept relatively very good current ratios-even blue chips like walmart have cl's exceeding ca's


Current assets
Cash and cash equivalents 4,770 6,892
Fixed short-term bank deposits – restricted 584 1,197
Prepaid expenses and other 432 434
Other deposits 533 540
Deferred offering costs 79 -
Governmental receivables 562 1,237
Other receivables 154 133
Total current assets 7,114 10,433

Unproved oil and gas properties, full cost method (see Note 4)

25,934
21,695

Property and equipment at cost
Net of accumulated depreciation of $467 and $442 190 196

Other assets
Fixed long-term bank deposits – restricted 991 990
Assets held for severance benefits 244 234
Total other assets 1,235 1,224

Total assets

34,473
33,548

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable 1,890 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6)

5,400
1,866
Accrued liabilities 956 1,701
Total current liabilities 8,716 6,787

based on this 10q they est funds only to july 31 but finds didnt run out july 31,did they



2nd qtr 10q =period ending june 30 follows



June 30,
2018 December 31,
2017
US$
thousands US$
thousands
Current assets
Cash and cash equivalents 5,937 6,892
Fixed short-term bank deposits – restricted 521 1,197
Prepaid expenses and other 325 434
Other deposits 337 540
Governmental receivables (see Note 8) 568 1,237
Other receivables 154 133
Total current assets 7,842 10,433

Unproved oil and gas properties, full cost method (see Note 4) 30,339 21,695

Property and equipment at cost
Net of accumulated depreciation of $430 and $453 172 196

Other assets
Fixed long-term bank deposits – restricted 930 990
Assets held for severance benefits 258 234
Total other assets 1,188 1,224

Total assets 39,541 33,548

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable 2,288 2,750
Asset retirement obligation 470 470
Derivative liability (see Note 6) 4,432 1,866
Accrued liabilities 1,834 1,701
Total current liabilities 9,024 6,787

the derivative liability is a contingent liability which will not rear its head if pps rises based on further info re oil or the field
estimates have not been taking into account dssp funds from what i've seen
logistical and mechanical delays have limited well employee work time/costs though costs exist to replace non working israeli charges etc
so funds likely would continue beyond sept 30 -remember the 10q's are strictly conservative legal templates-the opposite of PR's
but it is only logical that they raise funds BEFORE they run out so the testing is not interrupted

if they have high enough confidence testing will show a commercial well or field they could get a relatively short term bridge loan while pps is low bc warrants and pp's usually hold future pps down and there have been enough attacks against the pps already
or partner or give royalty- those avenues can be time consuming and costly bc grey/black knights (never seen a white knight) are almost always voracious

july dssp raised 400k dollars- august-a hard time for fundraising-would probably raise less-people/fund managers come back into the market in sept after the dog days of summer are over-so sept could raise more than 400k-hard to say after recent events
will banks make regular loans based on the capitalization of exploration costs? if so, interest rate would probably be higher than normal due to risk involved and thus at best be a hybrid bridge loan

zn is far closer to a commercial well than previous wells- given all the miracles which enabled them to finish the well and test for millions of dollars and more than 1 year it would seem those millions and miracles and the dream team etc would give rise to a reward-a reward the adversary has worked very hard to stop in zn 's life and our personal lives via hindering delaying obstructing interfering (even interfering w lower well bore and flow and rocks-i've seen things happen growing up in a cult) causing confusion etc

those adversarial blocking efforts are often successful for a season but, given the proper continued seeking/fulfillment of zions 2 purposes,should give way at the hab 2:3 appointed kairos time. After struggling through the summer months-historically a time of punishment in israel -as in the 9th of av -deliverance and turning the tide against their enemies often came at the former (early) rains associated with the high holy days of rosh hashanah and yom kippur (though significant rains usually delay to october, which sometimes host both high holy days noted above).








from the last PR:


Following the circulation of the fluid after the stimulation job, we ran back in the hole and began to swab the well to attempt to see if the well would flow. As of the writing of this update, when swabbing, the data confirms the well artificially flows at a rate of approximately 90-110 barrels of fluid per day in the zone between 16,415 and 16,500 ft. We are still swabbing completion fluid as of this writing and the results of the well are inconclusive at this point as to whether the well will establish natural flow and what the volumetric contribution of oil and water will be.

5. We remain hopeful but do not yet know if there is producible oil in commercial quantities within our deep primary zones, and there are still many questions yet to be answered




The MJ #1 has successfully demonstrated the existence of an active petroleum system. Oil has been encountered which we believe confirms that mature source rocks have expelled hydrocarbons that have migrated into a trap which was drilled by MJ #1; and

c. There are multiple identifiable targets and objectives that have been observed based on drilling, testing and petrophysical analysis, which we have yet to test.
Have we swabbed enough completion fluid and formation fluid from zones 16,415-16,500 ft and 16,080 – 16,215 ft to effectively allow for the formation to naturally flow, and will the encouragement of that natural flow, if established, allow for commercial amounts of oil to flow?
b. Drilling analysis and petrophysical analysis suggest that there may be more potential oil-bearing zones above the Triassic boundary, which was internally picked at approximately 15,175 ft. Zion chose to focus on the Triassic because of the regional success in Givot Olam’s Meged Field. Subject to raising adequate financial resources, of which no assurance can be provided, we plan to continue with testing of the multiple zones of interest higher in the well.
c. We know that the primary zones located within the Triassic-aged formations have proven to have low permeability and few natural fractures. If the questions above continue to provide answers that suggest producible oil, advanced stimulation techniques could be used to help create an environment of higher permeability and a fracture regime more conducive to commercial flow rates.


2. If answers to the foregoing questions above are positive, and we raise the needed financial resources, we plan to acquire additional focused seismic data to help guide potential field development and continue with Zion’s vision to help make Israel energy independent.
end of selected PR portions

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