Zion Oil & Gas Inc (ZNOG)

[bdahl385]

Flatron - I agree with your interpretation in today's NR. Seismic is not 100%, you make many assumptions on interpreting the data and you drill based on what the computer number crunching shows you. Until penetrated by the bit, you never know whats out in front of those drilling cones.

This unanticipated faulting has caused this well to fail to meet their primary goal of testing the Permian (for now). The good news is that they didn't want to keep drilling blindly to get to the Permian because of the 7 zones uphole they want to test. The whole well could have been jeopardized so why chance it???

If any of the 7 zones prove to be commercial, then the well is a success and cash flow can start as hydrocarbons are sold. If these 7 zones don't pan out, then Zion simply re-enters this well and drills down to test that Permian section. It's worth the gamble at that point since your uphole zones are non commercial. Plus they will have had more time to analyze their findings and decide which direction to drill if they go back for the Permian test.

I had a long standing GTC limit buy order in the low 9's that got filled this week. Kind of forgot about it since ZN has been in double digits for quite a while. Just in time to allow me more $5 shares in the upcoming rights offering.

GLTY !!!