Zion Oil & Gas Inc (ZNOG)

[tisdal]

Well Moses, that may be how they handle it.

But I think that's shortsighted, and does not make logical sense.

Zion could bring in capital investors and under a Non Disclosure, show them what they have, the anticipated financial needs (e.g. production) and sell shares at a price in-line with what is about to happen.

Zion could also be setting up for after the testing is made public, then bring in Capital Investors.

There is no where mentioned that Zion plans to sell these shares at today's prices.

KEY TAKEAWAYS

SEC Form S-3 is a regulatory filing that provides simplified reporting for issuers of registered securities.

An S-3 filing is utilized when a company wishes to raise capital, usually as a secondary offering after an initial public offering has already occurred.

In order to utilize the simplified process, firms must first meet a certain set of eligibility criteria.

IMHO, Zion is about to make a rather substantial commercial discovery. They have enough money on hand to complete enough testing to establish the size of the discovery. Once that initial testing is completed, Capital Investors will be bought in to fully take advantage of the discovery.

Let's be honest, they'll be lining up at the door.

Remember, Zion is in Dallas. There are literally scores of oil capital investors within a 50 mile radius.

If Zion truly has a commercial discovery, selling those shares at the current PPS will not happen.

If Zion cannot demonstrate a commercial discovery, there isn't a capital investor that will invest in Zion at any price.

Think about it. Logically, the only way they get a capital investor is if they have a commercial discovery. With that in mind, Zion is just preparing to raise capital for Production.

No Capital Investor will be interested otherwise.

Zion is once again telegraphing legally, we have a commercial discovery.