Replies to post #24200 on Zion Oil & Gas Inc (ZNOG)

[tisdal]

docvienna, KyOil could answer first question better.

I have never worked in an oil patch. IMHO, it does not. The concept is to fire charges and stimulate the openings created to see if and how much oil will flow, hence, flow testing.

As to financing, I'm not an expert, but I would think it would depend on the reservoir size. This is partially what is taking so long IMHO. Zion has been clear that when they release the test results, they will be conclusive with no room for speculation. IMHO, that means tey will be Zion verified, third party verified, Israel verified. There will be no room for speculation at all. It is what it is.

From there, where the money comes from to take full advantage of the reservoir will be decide. I have speculated in the past that Israel would be financially involved. There is not an open door policy there. They are very strict and highly regulatory. This is also part of the reason for the long timeframe for drilling.

IMHO, Israel will want to own the midstream and build it out. Mainly because oil companies come and go, but the midstream is static. The other reason is the regulations that a company would have to meet in order to buildout the midstream. It would be next to impossible for a company to meet them. It would take a big effort to accomplish and i think only possible by the Israeli authorities under the guise of National Security to break through all the red tape. Remember that Israel requires 250K barrels a day. 100k of which is for the IDF.

If the reservoir is big enough, there will be quite a few wealthy investors running around to reinvest some of their profits. Mr. Brown alone holds over 1 million shares and his intent has never been unclear. There are other directors that would do well also. All of which are here to bring energy independence to Israel.

With a large enough reservoir, raising funds through rights offerings will not be a concern.

FYI: Since spudding the well, not one insider has sold a share without being under an SEC approved plan. All have been gifts and i do not believe all of those gifts together exceed 100k shares. Pretty impressive.

Also, the recent member of the board was issued options with a $4.00+ strike price. Either she plans to never exercise them or believes that price will be cheap when she does.

All speculative ;-)

[KyOil]

docvienna, the 3.5 inch pipe was the drill pipe used to drill the lower portion of the well. The bit on the end of that pipe was larger than 3-1/2". The bit has to be small enough to fit inside the 7" casing and large enough to make a hole for the 4-1/2" casing.

Now that the 4-1/2" casing is set, the drill pipe is out of the hole.

What is downhole now is a production pipe. I believe 2-7/8" is the largest production pipe that will fit inside 4-1/2" casing. It's not just the OD of the pipe to be considered, but the OD of the pipe couplings that will fit inside 4-1/2" casing. Depending on wall thickness chosen, the 2-7/8" production pipe has an inside diameter around 2".

This is considerably smaller than the production pipe that would have been used had the 7" casing reached TD. So, yes, the smaller pipe at the bottom will restrict flow.

Depending on MJ#1 flow rate, this may or may not affect testing or production. The right way to view the current hole is that its primary purpose was to see what geology is there and to provide some production. The follow-on wells from the same pad will be optimized for production now that the geology is known.

Hope this answers your question!