Zion Oil & Gas Inc (ZNOG)

[tisdal]

Here is the current complete set of questions

Hydrocarbons occur in the subsurface in four modes:

1. Continuous phase oil or gas
2. Isolated droplets of oil or gas
3. Dissolved hydrocarbons
4. Associated with kerogenous rocks

All of these modes of occurrence can result in what is described as a subsurface hydrocarbon "show." Each show type has markedly different implications to exploration and must be differentiated as the first step in show interpretation.

Only continuous phase occurrences of oil and gas indicate that a trapped and potentially producible accumulation of hydrocarbons has been discovered.

Q1: Can Zion Oil and Gas clearly state at this time that MJ02 has encountered continuous phase occurrences of oil and gas that indicate that a trapped and potentially producible accumulation of hydrocarbons has been discovered?

If not, then how does Zion (considering the above description of the four modes of subsurface hydrocarbon shows) justify continuing to pursue the expensive testing of MJ02?

Q2: What is the Current P50 estimate for MJ02?


At the 2021 AMoS, at 41:35 into the video, with respect to the 3D Data, Mr. Dunn stated, “We’re very happy with the product that we received in the 3D … The 3D was a success for us”.

Q3: Is Zion still happy with the product received in the 3D?

Q4: How (specifically) has the 3D enable Zion in it search for Oil and Gas?

Q5: Is the success of the 3D going to translate into success for the shareholder of Zion Oil and Gas? If so, when?

Q6: Does Zion plan to perform another 3D seismic survey on a different portion of our current/new license?


At the 2021 AMoS, at 48:10 into the video, Mr. Dunn stated, “with the final section here, I think we’re going start to see some intermediate news happening on a fairly regular basis”.

Obviously, that did not take place.

Q7: What Happened?

At the 2021 AMoS, Mr. Dunn stated “we should complete MJ02 by July 2021”.
Here we are heading into July 2022.

Q8: What Happened?

Q9: Same question as last year, when will MJ02 be completed?

Q10: Will there be an MJ03?
• If so,
o When will Drilling begin?
o Where will it be located?
o How will the capital funding be raised?

Q11: Is there any possibility that MJ01 could be converted into a production well should a commercial reservoir be found by MJ02?


Assorted Questions:


Has the request for a new 3-year license been approved?
• If not,
o When does Zion expect to hear from Israel’s Energy Ministry with regards to the request for a new 3-year license?
o What are Zion’s expectations with respect to being granted the new 3-year license?


Does Zion believe that MJ02 will be a commercially successful well?


During MJ01, Zion was far more forthcoming with information with respect to the operations.
• Why are Zion’s communications with its shareholders (and the rest of the world) so obscure?


Zion is engaged in selling extremely large quantities of shares to individual investing “participants” who want to participate in Zion as an investment, but by allowing large quantities of stock to be sold at the current share price, the long-term shareholder is harmed as the share price stagnates as the number of shares exponentially grows.

When what would otherwise be a large amount of demand driving the price up on the open market, Zion is instead keeping the stock price stagnant. Zion is keeping the share price artificially low, not allowing the long-term shareholder to participate in the rise of the stock price based on the increased demand.

• How does Zion justify to its long-term faithful shareholders the heavy dilution of their investment while Zion continues to maintain artificially low share prices through how it is using the DSPP to fund operations!?

• Is Zion willing to shut down the DSPP for the sake of the long-term faithful shareholder and explore other financing avenues that will allow the stock price to rise rather than keep it artificially low while allowing individual participants to invest?


What is the strategy to deliver oil/gas to the market?
• If oil, which refinery and how will it be delivered?
• If gas, what existing pipeline can MJ02 be tied into and how long will it take to make the connection?


What is the strategy to develop the field?
• Zion as the sole operator?
• Sell a significant portion of the rights to a major producer who will provide expertise?
• Please explain if other than one of the above.


The most recent 10Q stated that funds were either in hand or anticipated via the DSPP to support operations through Jan 2023.
• Does the future DSPP anticipated funds come from primarily one or two participants, as did the reported 1Q2022 funding being 85% from one participant?
• What is the nature of the one or two participants relationship with Zion?
• Is there risk the funds will not materialize?
• What is the strategic goal of the one or two participants?
• Can Zion find alternative methods of financing with the two participants so that the long-term faithful shareholder does not realize the high dilutive impact that currently is occurring?

Why did Zion apply for both a license extension and a new license for the same 99,000 acreage? It seems one would suffice.


What caused delay in the drilling of MJ02 from approximately late Aug 2021 until approximately mid Nov 2021?


Are there factors out of Zion's control that has/will dictate what was/is communicated by Zion to the public, either in the recent past or the near future?


When will Zion apply for a production lease?