Post by Ethan / JRyan on Dec 10, 2022 9:41:35 GMT -5
So, I took some time to reflect on what I read, absorb the comments, even the bears.
I know there is oil there, I have said many times that whether commercial or not was the question. This site has many articles about the search for oil in Israel and not all have been 'dry'. There is a key to this in my thinking. It is stated in the information we received yesterday.
Although logs strongly indicate the presence of hydrocarbons, we have determined the zone does not have sufficient permeability to be productive. We will set a temporary plug in the wellbore to preserve its integrity and the opportunity to make future use of it, should circumstances and technological innovations warrant that.
Yes, Fracking. Permeability is a huge issue in a reservoir. What we now know is that the odds of a conventional well are very limited now. The 3D attempt to locate that has failed. Yet, the formations are there, just as they were in the Golan and Meged.
Meged Field
What does this mean for Zion oil as a company? I am unsure but the odds are not good for Zion continuing to drill. MJ1 had failed to show commerciality and now MJ2 has joined the same result. MJ2 was drilled with the help of a whale or whales. We never could get this information in a clear sense. The whale(s) can either continue or stop and take the losses. Maybe it was set up to be a tax loss but I bet we will never know the whole truth on this one. I feel that the DSPP will no longer fund the operations if they were to continue.
The share price will collapse on Monday. How much? I have no clue but it will be a bloodbath, of that I am sure.
I think the odds of it going private have skyrocketed now. I think the company in some sense will continue but the odds are small that it will continue to be publicly traded. As of close yesterday, the company was worth $60 million, this will fall to around $20 million. Why not further? The Rig, License, and operational portions.
What would be the reason to go back to MJ1? I had thought is what capped? The Mohilla? I think this is a bad idea unless Zion is allowed to use modern technology. Remember that Givot was able to use a type of fracking to get over 1 million barrels of light sweet crude but ran out of funding. The technology available now is far different than what was used at Meged 5 and others. Yet, that will not happen do to environmental regulations unless something were to change along those lines.
So what will I do with my shares? They will become practically worthless very soon. I was and still am a believer in the goal of Zion Oil but I guess it was just not meant to be at this time. I learned alot about the oil business throughout these years and maybe that will come in handy someday. I do not know what I will do on Monday, my gut tells me I will hold steady but one never knows. My shares were not for sale until the news. I rode it out and lost.
Do I feel Zion Oil was a scam? Absolutely not. Is it a well run company? No, it has its issues and public perception is one thing they do not do well. I do know that many did not want it to succeed and did many things to facilitate this. These are documented on this site.
One thing Israel now knows, they have a layer of oil available to them but not in the conventional way. What those reserves are we have no idea as the flows could not be tested but with a conventional means. Would fracking work? I believe it would to some extent. I do not think the formations contain billions of barrels like the Permian but it does contain some. Maybe the Bakken would be a better comparison but I am not a geologist. I do know that there is Oil there, but for now it will remain in the ground until things change. I do not think it would be Zion Oil that would be granted the right to frack anyway.
So a journey is almost over. I have lost monies but it was not mine to begin with. Was I a good steward with the monies? Only He can answer that one. I do not regret it, it was exciting at times but also disappointing at times as well. It was a journey that was worth the trip for me. Many of the investors will loose more money in the months to come and not on Zion Oil stock. The Market is a manipulated mess and so many have their accumulated wealth tied up in the market. I am for the most part out of the market and have been for over a year. Its a game as I loose to inflation every day but that is the path I am taking for now.
Good Luck to all and yes I will update the site as needed but there will not be much to talk about next week but the bloodbath that is surely coming.
In retrospect, Zion Oil is but a small worry for me as I see Christianity being assaulted all over. In government, media, and believe it or not inside the Churches!
Pray for revival in our nation. Israel is already secular and the USA is not far behind. It has been foretold in the Scriptures what would come and it is at the doorstep.
By Grace Alone Go I........
