Zion Oil & Gas Inc (ZNOG)

[KyOil]

Shouldbe, the singular zone in the 10-K could be an issue or not.

Is an Issue
MJ02 had two very promising zones and further interpretation of the logs killed one of them, so now the P50 is substantially reduced.

Is Not an Issue
The use of "zones" refers to strata that will be tested and produced separately. Often, multiple strata with hydrocarbons are combined into one zone to be tested and produced. In this case, its not a loss of reservoir size, just a decision how to proceed with completing the well.


Its speculation, but I would guess its the "not an issue" case. MJ01 had difficulty in isolating different strata, so to combine them for testing and production would make it much easier. Further, it does not seem likely that the logs would have shown data at this point that says don't test a strata layer that could have otherwise been isolated. So, I'm going with easier to test/produce, and not that the reservoir size has been reduced in a meaningful way.

I could be wrong and the zone with the most promise was lost and now all they have is a backup zone which will imply a substantial loss in reservoir size.

Not knowing which case it is a result of lack of communication by Zion. The reasons for lack of communication have been debated endlessly in other posts.