Zion Oil & Gas Inc (ZNOG)

[KyOil]

Porgie, as someone who found ZN by wanting to find an option play you sure are digging deep into the physics. That is admirable. Perhaps you will find this helpful along that journey.

1. Formation pressure is different from wellbore pressure. As you noted, the wellbore will have a linear pressure gradient with depth that is a function of the density of the static fluid in the wellbore. This is true whether the fluid is a gas or liquid. However, prior to the wellbore being created, one geological formation may not have good fluid communication with another. For example, the fluid pressure just below the cap rock can be higher than the fluid pressure just above the cap rock. This is because the cap rock does not allow fluid communication between the formations below it and above it. Formation pressures are measured with tools that are not influenced by the wellbore pressure.

2. The 10x gas increase was observed when drilling through a cap rock (material shale) in the lower Jurassic and refers to the presence of gas being 10x higher below the cap than it was above the cap. This is confirmation that the cap rock did its job by trapping hydrocarbons. They wanted to migrate upward to normalize pressure, but the cap rock stopped their journey. So, they accumulated in the fractured carbonate reservoir just below the cap rock and are now awaiting to be sized.