Zion Oil & Gas Inc (ZNOG)

[KyOil]

tisdal, how a reservoir is sized depends on the data available, which in turns depends on how mature the field is. Common categories of reservoirs are:

Up to 50% probability of X barrels of oil is a "possible reserve"
Up to 90% probability of Y barrels of oil is a "probable reserve"
Above 90% probability of Z barrels of oil is a "proven reserve"

Where for a given field, X > Y > Z.

Generally speaking, the seismic data is enough to state a P50 size (50% probability of x barrels of oil; might be higher or lower after testing) before drilling.

Seismic plus a drilled well that has contact with oil is generally enough data to state a probable reserve.

Some level of production to ensure the reservoir flow rate is dependable is generally required to size a "proven reserve".

I suspect that Zion will announce a probable reserve after testing MJ02, and not wait until the reserve is proven. They skipped over announcing a possible reserve on MJ02 prior to drilling, but might announce a possible reserve after testing MJ02.