Zion Oil & Gas Inc (ZNOG)

[microcaps1]

remember this is the reason -the 4 day round trip at 16000 plus feet plus 5 day packer life at depth would have them wasting expensive packers and running up and down the drill hole before they could accomplish their objectives during a period when there are 9-11 holidays within ca a 22 day period


microcaps1 Wednesday, 09/12/18 01:27:28 PM
Re: microcaps1 post# 28483 0
Post # of 28751

thanks axle for the recommend-

i write up to 100 pages /day- would be tricky with info given to me- would have to come under 1 of several sec exceptions on insider knowledge-absent that a pr would have to come out within 24 hours and thats not enough time for zn legal and other vetting of the pr,and would complicate my posting here. I've never even emailed ZION,but due to the ability to flesh out things,dd and extrapolate etc i'm sometimes accused of insider knowledge,a typical experience for a high profile dd long.


I agree they could use consultation on PR's- in the stock market there are rarely any negative things in PR's- thats usually reserved for 10q's etc

unfortunately, if you put out an honest PR,most investors reading it wont understand why its written as its written,especially considering the unique nature of zion's mission.

e.g., the aug 16 pr where they say they can't say its commercial yet-thats true but the way it was worded left an opening for those who would attack-
many only saw 'not commerical'
without seeing as of now -without realizing the 3rd level of testing- flow testing - was still in its infancy even in the 1st tested zones and only 1.5% of the well had ANY flow testing so far.

As I've looked at the last PR's several times, given the knowledge i have of zn,i feel i understand what they are saying except for a few things-but an 'outside investor',who is used to only glowing PRs,may be taken aback by the negative or perceived negative things.

I'm a quick study and as i study the pr's i dont see the logic in the pps fall except for what i've explained above.

but, e.g., they could explain the holiday situation in language secular investors would understand,such as:

we lease the drill site from a religious community/kibbutz formed in the 1930's as an escape from europe and hitlers final solution[most ppl can understand that without thinking the kibbutz is some off the rocker hippie commune/cult.]

as per our contract with the kibbutz we are required to honor sabbaths,which usually means no drilling 4.33 days/month.

In september, due to an unusual once/year confluence of high sabbaths -which by law cannot fall on a regular sabbath day,there are 9-11 sabbath days from sept 8 to oct 1 on which we cannot operate the drilling equipment.

However, during that time we will continue to be very busy w geopetro analysis,such as [and describe such]

Such analysis has to date identified five more primary zones for testing further up the well bore.

The packers we've been using only have a 5 day shelf life deep in the triassic formations below 16000 feet which we have been testing,due to the high temperatures at that depth.

Thus its not cost efficient to test as required with packers during this unique holiday season. We would spend 2 days getting the packer to 16000 ft depth only to be stopped by one or more consecutive holiday days.

During those holidays, when drill work is prohibited, the packers would be just burning rubber/their short shelf life, and thus the money invested in the packers plus variable costs such as the work crews wages would be lost.

Thus,it is not logical or efficient to do such testing during this unique period [investors need to understand this is a unique situation not repeatable more than once/year].

We will resume testing Oct 14[not Oct 19].

Once we move our testing to higher zones the reduced temps of such zones will allow for longer packer life and shorter well round trips to insert and remove the packers. Packers which cost 300k more per packer may extend the packer life[if thats the case],but would not be beneficial on a cost benefit analysis basis for the short extension in shelf life at depth.