Zion Oil & Gas Inc (ZNOG)

[KyOil]

Context for Investing in Oil Exploration

And hence context for interpreting my posts since I have done oil exploration. Many of these points I have made in posts over the years.

1. Oil exploration is one of the most risky investments that can be made. Particularly if a single well holds the fate of the venture. I usually do a multi well program and not count on each well being commercial. MJ02 is ZNOG's 6th well, the other 5 were non-commercial, their license is about to expire, and the new Energy Minister wants to shut down oil in favor of natural gas and renewables. Therefore, this well and ZNOG at this time is particularly very speculative.

2. Oil exploration can also provide very high returns. Hence oil exploration is speculative where speculative = can quickly loose all capital on the downside, but can multiply it on the upside.

3. Do not invest what you can not afford to lose, and have other investments outside of oil and gas exploration.

4. Look for indications of asymmetrical investments where the return is higher than the risk. Its futile to look for 100% proof of a future outcome in this industry.

Given 1 and 2 above, I'm somewhat surprised of negative posts that I am speculating on an outcome or making leading statements. All outcomes are speculative in this industry, and particularly with ZNOG. In other words, any statement of an outcome, good or bad, is speculative. It goes with the territory. Don't get hung up on that, but look at the reasoning behind the conclusion. For instance, if someone posts that Zion is a scam, look to the reasoning why they believe that if any reasoning is provided. Their statement was speculative and leading, but is the reasoning compelling to you?

As I stated in the previous post, my conclusion is that the actions of the Energy Ministry indicates a discovery. And a discovery when the share price is $0.15 is an asymmetrical opportunity where the return is much higher than the risk. I derive value from the discussion on the board and wanted to share an insight that might help someone else make a decision. After considering ideas and data shared on the board, each person has to own their investment decisions.