Two short term potential positives upcoming
1) The rights offering ends Nov. 30, with this hopeful conclusion - any short term manipulation between shorts and market makers to distort the stock price to their liking will end. It will be good to have the uncertainty of this behind us.
2) From the recent drilling report, ZION gave us this great news:
"Today, Wednesday, November 25, 2009, I signed a Contract with the owners of a suitable workover rig.
We intend to carry out completion testing
operations on this well, starting December 6, 2009."
The first completion zone test should not take that long. They have 3 zones in open hole below the cemented casing point that they will test. Should only involve running a packer and tubing in the hole and then swabbing out the mud/heavy water that is in the casing right now. This will allow the formation fluids to enter the well bore and then hopefully flow to surface. They may add some stimulation fluid (acid or chemical) and pump into the zones to induce a little more fluid flow if need be.
I hope we get a completion game plan from ZION next week on their weekly update, would be curious to see how they plan on completing this first open hole portion of the three zones. It is not that common a procedure anymore since most want to isolate / stimulate / test each zone separately. The three zones must be very similar in geophysical properties and in close proximity to each other to attempt what they are doing. I might conclude it's really one zone with two small shale sequences (or similar matrix) providing the isolation.
A nice flow of commercial oil would help to:
1) Give Israel that boost towards hydrocarbon energy independence.
2) Rally the SP and give the shareholders some nice gain on their investment capital.
