Replies to post #41382 on Zion Oil & Gas Inc (ZNOG)

[tisdal]

Safe to say, oil$ will be higher ...

... by the time we get to production.

There are many stipulations within the agreement with Israel when extracting oil from their native soil. The first of which is that the first specified number of barrels go directly to the military for their use.

The next is that taxes applied by the Israeli Government are pretty steep. Not sure you included those types of taxes.

Mr. Brown's number of 30K BBL/day is approximately 10% of what Israel currently uses. In 2017, Israel used 247,000 BBL/day. That would be the minimal number of barrels needed by Israel.

I do not know about Mr. Brown, but I do not like to put such limitations on the one who created the oil in the first place :-).

If Israel needs 300K BBL/day, then Amen. Bring it on. These are the end of times, so we await the overflow as You promised.

We have been waiting on You for a long time. Is this Your timing? If it's not, then don't bring it. If it is, then let it (OVER) flow. In this way, it will bear witness to You.

[tisdal]

mrbojangle, new calculation ...

At $75/barrel, the net earnings per barrel after taxes, royalties and operational costs would be $25.54. @ 30,000 bpd running at 6 days per week I get 10,000,000 barrels. So annual net income would be $255,400,000. Divided by 240,000,000 shares outstanding you get $1.06/share. If Zion gets the 20X multiple, you get around $21/share IMHO

First, it will be 7 days a week. Do not believe that when in production, it is safe to shut down a producing well due to pressures etc.

If we use your calculation on a 7 day week and at 300K BBL/day (Israel's usage), then we get the following:

$75/barrel OR
$25 net profit / barrel
365 days X 300K BBLs/day = 109,500,000 BBLs/year
109,500,000 x 25.00 = 2,737,500,000
2,737,500,000 / 300,000 shares = $9125.00/share

This would be high because there would be a lot of oil patch development and production (i.e. re-investment). That number is a wild card.

There will also be a need to drill far more wells and pull as much oil from the field as possible. That means there would be revenue from leasing portions of the License area to other drillers.

So let's cut that number in half and round down to $4500/share.

So if we produce 300K BBLs/day at $75/BBLs, the potential for the share price to be very high is very good.

The best part about this is that the first 300K BBLs/day are already sold to an internal customer, so these are guaranteed sales.

After that, Israel will probably buy the extra, and sell it at a profit to the external world.

PLEASE REMEMBER THIS IS ALL VERY HIGHLY SPECULATIVE!!!!