Replies to post #48875 on Zion Oil & Gas Inc (ZNOG)

[Porgie Tirebiter]

The "better approach" might involve applying basic economic incentive principles coupled with an observation of the company's behavior.

If there were commercial quantities in that well, ZNOG would be incentivized by current events (both geo-political and market based) to put that well into production without delay.

If that well was going to produce 30,000 barrels a day (as has been tossed around here), there is no need to test it for commercial viability. They would have known it's commercial a few seconds after they breached the bottom of the cap rock.

If the well was believed to be marginally commercial (ie; will it meet the threshold of producing maybe 5 barrels a day?) then the company would be incentivized to initiate testing to determine if it's justifiable in spending the capital toward the cost of making the well into a producer.

If they've got they've got no chance of the well being a commercial well then the company would be incentivized to shut up, say as little as possible, and drag this out for as long as they can get away with it.