Zion Oil & Gas, Inc. (NASDAQ:ZN)
Zion Oil & Gas, Inc. (NASDAQ:ZN) has announced that it managed to drill the Megiddo-Jezreel #1, an extremely deep, onshore oil well situated in Israel’s Jezreel Valley. Zion Oil & Gas specializes in oil and gas exploration and has the Megiddo-Jezreel License (MJL) – a petroleum exploration license onshore.
While acknowledging the new development, the company’s CEO Victor G. Carrillo said the company has been through a difficult and complicated year before getting to this point. He added that they expect to start drilling at least four geological strata with potential for oil and gas.
President and COO of Zion Oil & Gas, Inc. (NASDAQ:ZN) Dustin Guinn echoed Victor’s statement. Guinn said that after having put in a lot of effort and resources, management is highly optimistic that the well will be successful. He expressed gratitude to the company’s shareholders who, he says, have been very supportive of the company during the entire process.
To successfully execute the implementation of the project, Zion Oil & Gas, Inc. (NASDAQ:ZN) has contracted with some of the best-in-class service providers like Baker Hughes, Halliburton, and Weatherford and highlighted by DAFORA’s F-400 drilling rig. The rig has a draw-works capacity of 3,000 HP and is able to drill over 7,000 m.
Zion Oil & Gas, Inc. (NASDAQ:ZN) hopes to drill multiple wells from the site but this will be dependent on the exploration results and capital availability. From the site, several other subsurface geologic sites can be reached through use of directional drilling.
In 2015, an independent report compiled by Beicip-Franlab, an international consulting company, established that there are up to 6.6 billion bbl of undiscovered oil and located in the offshore parts of the Levant Basin in Israel. Although the Megiddo-Jezreel License area is onshore, it lies entirely in the Levant Basin and is strategically positioned to experience some of the most important geologic components of an active petroleum system.
Zion Oil & Gas, Inc. (NASDAQ:ZN)’s gas and oil exploration projects are centered in Israel with its activities focused in the Megiddo-Jezreel License which sits on around 99,000 acres.
Zion Oil & Gas, Inc. (NASDAQ:ZN) stock closed the Tuesday session with a -20.00% or -$0.55 drop to trade at $2.20
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $ZN and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.