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ZNOG Potential Fair Value PPS Upon Discovery - Stocktwits @jmaruschok
SourcesMJ2 MilestonesSources
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Brent Oil $/Barrel as of 11/11/2022$96.06
Oil Price Charts | Oilprice.com
First section of well complete at 3,000'. Begin casing 2/1/2021
Press Release: February 1, 2021 - Zion Oil & Gas Nears First Drilling Milestone in MJ-02 Well In Israel
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Outstanding Shares as of 11/8/2022 (From 2022 Q3 10Q)514,582,460
ZNOG - Zion Oil & Gas, Inc. | Security | OTC Markets
Depth of about 8,500' next. Second casing around end of March
https://www.zionoil.com/updates/zion-oil-gas-operational-update-march-10-2021/
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Daily Oil Production Rate Barrels/DayAssume 1,500
US Oil and Gas Wells by Production Rate - U.S. Energy Information Administration (EIA)
Drilling continues as expected. $2.2M raised Q1 through DSPP (F-30)
Zion Oil & Gas Inc 2020 Annual Report 10-K (sec.report)
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MJ1 Price Timeline
https://stocktwits.com/jmaruschok/message/260224488
Funded through May 2021 (p. 32)
Zion Oil & Gas Inc 2020 Annual Report 10-K (sec.report)
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MJ2 Anticpated Spud to Target Depth Time5 months
Zion Oil & Gas, Inc. Receives Drilling Plan Approval in Israel
Completed second section. Bore deeper and wider than any before
Press Release: April 12, 2021 - Zion Oil & Gas Completes Second Drilling Milestone in Megiddo-Jezreel #2 (MJ-02) Well in Israel
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MJ2 Spud Date1/6/2021
Press Release: January 6, 2021 – Zion Oil & Gas Spuds the Megiddo-Jezreel #2 Well in Israel
Target depth is 5,800m (~19,000'). Drilling still on schedule
Zion Oil & Gas Inc 2021 Quarterly Report 10-Q (sec.report)
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MJ2 Rig Cost$5,600,000.00
Zion Oil & Gas Purchases Drilling Rig for Israel Operations
Drilling rate is far outpacing first sections. Hitting key geological markers
🇮🇱 Zion Oil & Gas Operations Update (mailchi.mp)
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MJ2 2021 Depreciated Value (7 Year Depreciation)$4,800,000.00
Oil: A big investment with big tax breaks (investopedia.com)
6/9/21 Annual Meeting: 9 5/8" casing ready to be set for 3rd stage. 5,400' to go. Mid-late July target depth. License extended to December 2, 2021. 4-6 weeks for well testing anticipated2021 Annual Meeting of Stockholders (zionoil.com)
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Monthly Expenses While Not Drilling$600,000.00
Zion Oil & Gas Inc 2020 Quarterly Report 10-Q (sec.report)
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Minimum Additional Monthly Expenses While Drilling$2,500,000.00
Zion Oil & Gas Inc 2020 Annual Report 10-K (sec.report)
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Minimum Total Monthly Expenses While Drilling$3,100,000.00
Stability issues encountered in shale formation
Zion Oil & Gas Operations Update from Israel as of July 26, 2021
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2021 Expenses - From Annual Report$31,606,000.00
downloadFiling (quotemedia.com)
8/23/2021 - Actually drilling again. Downtime is unknown to shareholders
Zion Oil & Gas Operations Update from Israel as of August 23, 2021
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Commissioner's office confirms that license 428 ends December 2, 2021
Jake Maruschok (@jmaruschok) | Stocktwits
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Estimated 2022 Non-Drilling Expenses$7,200,000.00
$600k/month * 12 months
11/11/2021 - In fourth section. Should be testing this quarter
Zion Oil and Gas, Inc. – Zion Oil & Gas Operations Update from Israel as of November 11, 2021
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Israeli Royalties at Market Value - Deductible as Expenses for Profit Levy
12.50%
Fiscal & Financial Terms (energy-sea.gov.il)
Well is complete at 18,141' with hydrocarbon shows. Starting to test
Zion Oil and Gas, Inc. – Press Release: Zion Oil & Gas Completes Drilling Phase of the Megiddo-Jezreel #2 (MJ-02) Well in Israel
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Israeli Profit Levy - Only Applied After 150% ROISee Chapter 2
Petroleum Profits Taxation Bill 5771-2011 (energy-sea.gov.il)
License is extended until August 1, 2022 for well testing purposes
Zion Oil & Gas Inc 2021 Current Report 8-K (sec.report)
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Levy Profit Levy After 230% ROI45%
4/7/2022 - Dunn meeting with Israeli government and local municipalities
Zion Oil and Gas, Inc. – Zion Oil & Gas Operations Update from Israel as of April 7, 2022
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Levy R Factor Assuming 1,500 Barrels/Day Produced1.19
($B$2*1500*365*0.875)/($B$13+$B$14)
5/11/2022 - New applications submitted, extension and new
Zion Oil and Gas, Inc. – Press Release: Zion Oil & Gas Operational Update for License #428 in Israel
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Assumed Israeli Profit Levy20%
Fiscal & Financial Terms (energy-sea.gov.il)
6/8/2022 - Annual Shareholder Meeting Video
Zion Oil and Gas, Inc. – 2022 Annual Meeting of Shareholders video recap – Zion Oil & Gas Shareholder Proxy Vote Information
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Israeli Corporate Income Tax23%
Fiscal & Financial Terms (energy-sea.gov.il)
8/1/2022 - 6 month license extension to 2/2/2023
Zion Oil and Gas, Inc. – Zion Oil & Gas Operations Update from Israel as of August 1, 2022
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Charitable Foundations - Percentage of Gross Revenue6%
Zion Oil & Gas Inc 2019 Annual Report 10-K (sec.report)
11/10/2022 - Testing resumed early November
10-Q Form - Quarterly report [Sections 13 or 15(d)] - ZION OIL & GAS INC (0001131312) (Filer) (newsfilter.io)
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Israeli Petroleum Law as it pertains to Zion license
Jake Maruschok (@jmaruschok) | Stocktwits
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Recoverable Barrels of Oil Assuming Only One Well In Operation
*In my opinion, if anything over 25M barrels are found, many more wells will be drilled, greatly reducing the years of production, increasing operating costs, but increasing PPS
Gross RevenueProduction Years at 1,500 Barrels/DayRoyalties at Market ValueLevyIncome Tax After Expenses and AssetsCharityCompany ValuePPS
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10,000,000$960,600,00018.26$120,075,000$243,752,250$100,845,777$29,755,618$466,171,354$0.91
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25,000,000$2,401,500,00045.66$300,187,500$609,380,625$261,362,513$73,834,162$1,156,735,200$2.25
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50,000,000$4,803,000,00091.32$600,375,000$1,218,761,250$528,890,406$147,298,401$2,307,674,944$4.48
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100,000,000$9,606,000,000182.65$1,200,750,000$2,437,522,500$1,063,946,192$294,226,879$4,609,554,430$8.96
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200,000,000$19,212,000,000365.30$2,401,500,000$4,875,045,000$2,134,057,763$588,083,834$9,213,313,403$17.90
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300,000,000$28,818,000,000547.95$3,602,250,000$7,312,567,500$3,204,169,335$881,940,790$13,817,072,375$26.85
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400,000,000$38,424,000,000730.59$4,803,000,000$9,750,090,000$4,274,280,906$1,175,797,746$18,420,831,348$35.80
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500,000,000$48,030,000,000913.24$6,003,750,000$12,187,612,500$5,344,392,478$1,469,654,701$23,024,590,321$44.74
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1,000,000,000$96,060,000,0001,826.48$12,007,500,000$24,375,225,000$10,694,950,336$2,938,939,480$46,043,385,184$89.48
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1,500,000,000$144,090,000,0002,739.73$18,011,250,000$36,562,837,500$16,045,508,194$4,408,224,258$69,062,180,048$134.21
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2,000,000,000$192,120,000,0003,652.97$24,015,000,000$48,750,450,000$21,396,066,052$5,877,509,037$92,080,974,912$178.94
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2,500,000,000$240,150,000,0004,566.21$30,018,750,000$60,938,062,500$26,746,623,909$7,346,793,815$115,099,769,775$223.68
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3,000,000,000$288,180,000,0005,479.45$36,022,500,000$73,125,675,000$32,097,181,767$8,816,078,594$138,118,564,639$268.41
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3,500,000,000$336,210,000,0006,392.69$42,026,250,000$85,313,287,500$37,447,739,625$10,285,363,372$161,137,359,502$313.14
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4,000,000,000$384,240,000,0007,305.94$48,030,000,000$97,500,900,000$42,798,297,483$11,754,648,151$184,156,154,366$357.87
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4,500,000,000$432,270,000,0008,219.18$54,033,750,000$109,688,512,500$48,148,855,341$13,223,932,930$207,174,949,230$402.61
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5,000,000,000$480,300,000,0009,132.42$60,037,500,000$121,876,125,000$53,499,413,199$14,693,217,708$230,193,744,093$447.34
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7,500,000,000$720,450,000,00013,698.63$90,056,250,000$182,814,187,500$80,252,202,488$22,039,641,601$345,287,718,411$671.01
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10,000,000,000$960,600,000,00018,264.84$120,075,000,000$243,752,250,000$107,004,991,778$29,386,065,493$460,381,692,729$894.67
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Jake Maruschok (@jmaruschok) | StocktwitsRECAF
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ZNOG Zion Oil & Gas Inc — Stock Price and Discussion | Stocktwits
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