Zion Oil & Gas Inc (ZNOG)

[Moses1492]

Pending 3D seismic report will give great insight on future drilling plans likely from EXISTING MJ1 wellsite. Some Calculations on Horizontal Drilling from MJ1 Pad (thanks KyOil):

The 3D survey area was 72 square km. Assuming that the survey area was a square box centered on the MJ1 pad, then the distance from the pad to the edges of the survey area is 4,243 meters (sqrt(72)/2).

MJ1 was a vertical well. The Triassic was found at 4,500 meters, Jurassic at about 3,000 meters, and Cretaceous at about 1,200 meters.

If the target is Triassic, then its reasonable that nearly all the survey area could be reached from the MJ1 pad with a horizontal well. Depends on the ability of the rig and crew to run a long horizontal.

If the target is Jurassic, then more likely another pad site will be required to reach the boundaries of the survey area, but a good portion could be reached from the MJ1 pad for exploration purposes.

If the target is Cretaceous, then many pad sites will be needed to reach the boundary of the survey area as its difficult to make a long horizontal run to a shallow target. Still, a reasonable percent of the Cretaceous survey area could be reached from MJ1 pad.

I suspect that ZN will select a target or targets (whether it's Triassic, Jurassic, and Cretaceous) that can be reached from the MJ1 pad to avoid the cost and time of creating another pad. If oil is found, then it would be justified to build additional pads to get the available flow from the target.

It will be interesting to see the target depth and distance from MJ1 they pick after the 3D is analyzed.