Zion Oil & Gas Inc (ZNOG)

[KyOil]

My gut (still speculation) says this one is commercial.

The odds on MJ02 before drilling were much higher than on MJ01 due to captured learning from MJ01 in companion with the 3D.

There is always a risk that TD can not be reached due to some disaster. That risk is now behind us on MJ02.

The Israeli Energy ministry granted a license extension after seeing the drill data. This is a very positive sign.

Zion insiders have been exercising options to acquire stock at a cost circa $0.15 at 200,000 shares a pop. That's multiple Zion insiders investing $30k right now. I don't think they are stupid.

Zion has not run out of cash, so can complete testing. Other than a disaster while drilling, running out of cash is the most brutal way to end an exploration well. The DSPP does create new shares (i.e. dilution), but it's necessary in order to raise funds.

With that said, I believe short positions have driven the pps down and Zion is not doing enough in the way of providing proactive information to combat the short positions. Hence the low pps and doubt/negativity that comes with it.

If the well is indeed commercial, short covering will send pps to levels higher than what the reservoir size would warrant.