Bullet proof facts Zion could have provided timely
1. After the 3D analysis and before spudding MJ02: the shallow Cretaceous formations are not in play due to erosion over the 3D area. The deeper Triassic formations are now of primary interest for MJ02. The Cretaceous formation was a big question raised by Zion mgt in the MJ01 postmortem. Its answer was a fact over 1.5 years ago; why wait until now to answer their own question in the public domain?
2. After 3D analysis and before spudding MJ02: the estimated size of the reservoir, expressed as "possible" by the use of industry standard methods. The possible size as given by the 3D volumetric was a fact at the time; investors know a possible reservoir based on 3D is not a guarantee of commercial success, but they should know what opportunity they are investing in. Having this info would have cut down on speculation and hand wringing.
3. After TD was reached in Nov 2021: There is a risk that wells can't be drilled due to technical issues and a testimony to that is Monty Kness's presentation. A general concern in the investor's mind was that Zion was incompetent for taking so long to drill MJ02. But, after hearing Kness's presentation (6 months too late) it is now apparent that Zion is very competent. This ordeal was a fact in Nov 2021; why not share then?
4. Upon getting a license extension in Dec 2021: It was public knowledge that the only path to another extension was with a discovery. It is spelled out in the 428 license terms and Dunn referred to the auto extension with a discovery in the 2021 ASM. So, there was some fact prior to Dec 2021 that led the Ministry to agree there was a discovery. And more time was needed to confirm the discovery was commercial, hence the extension until Aug 1, 2022. Why not share the fact that gave evidence to the discovery? Oil exploration investors know that there is no guarantee. Not providing the encouraging fact led to speculation.
It does just not seem plausible that these bullet proof facts could not be shared timely because of competitive concerns. Zion has exclusive access to its license area and has a great relationship with the Ministry. Further, there really is not a drilling industry in Israel as Zion itself points out when speaking of difficulties. Therefore, what competitor would be able to benefit from Zion keeping its shareholders up to date with bullet proof facts?
