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tisdal

07/18/18 8:55 PM

#21201 RE: JRyan #21185

JRyan, with respect to third party report.

SEC Edgar Link to Third Party

I did ask about the third party report and using it to estimate the size of the reservoir mid March 2018.

======================= QUESTION ===========================

With respect to the commercial quantities of the MJ#1, should an investor refer to TABLE 1: Prospective Resources of the Third Party Report as an accurate guide for what Zion believes they may have discovered? Should we refer to the Low, Mid, or High estimate?


======================= RESPONSE ===========================

While this was a positive indicator pre-drilling, it seems that this table is no longer relevant due to actually experiencing the layers while drilling. Best to await the full independent report.



IMHO, Zion used the third party report to verify that the MJ#1 drill site was a good prospect. After drilling and actually experiencing the layers while drilling, Zion is much more positive about the prospects.

Third party analysis of the log reports confirm this positive belief in the prospect.

Thought you would like to know.