Zion Oil & Gas Inc (ZNOG)

[KyOil]

There are at least two aspects to consider in evaluating the PR:

1. Whether the news is good, bad, or not discernible.
2. Timeliness and proper scope of the news.

I will go into aspect #1 in detail in a follow-up post, but in general battling water issues in a test zone of an exploration well is not uncommon, nor is it automatically the death sentence.

Aspect #2 is very encouraging in regards to Zion's effort to improve communications with investors. Dunn had stated there was a stretch goal of completing testing in 3Q, and the first business day after the end of 3Q there is an update; this is very timely which is an improvement for Zion. They also provided the info that there is a current unsolved problem - water. This is also an improvement for Zion as investors should have current info on both opportunity and risks. More detail on progress could have been provided such as the order of zone flow testing (top to bottom, or bottom to top) and how many zones have been tested. But, all things considered this is an improvement in communication from Zion.