“Special Report – Zion Oil”

August 16, 2011 by  

(Zion CEO Richard Rinberg (c), VP Victor Carrillo (l), and President Bill Ottavianni (r))

What’s in Store for Zion Oil & Gas?
I get e-mails and comments to this website (a lot of e-mails and comments) with questions about the future of Zion Oil & Gas. The emails and comments traffic goes way up whenever there’s a big rise or a big dip in Zion’s daily stock price. When the stock goes up Zion fans are dancing in the streets; when it goes down there’s sackcloth and ashes. The questions that come to me invariably take the form of, “What has Zion done to make their stock go up?” or “What have they done to make their stock go down?”

The answer? From my perspective, a definite long term perspective, nothing unusual. Zion operates day to day, week to week, month to month, and now year to year, in a pretty methodical manner. Plan, test, explore, review, repeat. I’ll admit, it’s not a very exciting methodology, but I’d rather have a dull methodology with exciting (long term) results than exciting methodology with no results (there’s been too much of that from other ‘explorers’ already).

So why does Zion’s stock go up and down? I’m no stock whiz, but from what I’ve seen at least some of it has to do with what’s happening outside of Zion. Earlier this year Zion’s share price spiked from under $4.50 to nearly $6.00 in a few days. The reason? Zion Oil & Gas attended the National Religious Broadcasters Convention in Nashville where religious (and secular) press took advantage of the situation, asked for interviews with Zion Founder John Brown and CEO Richard Rinberg and reported Zion’s story. The stock went up – there wasn’t a change in the company’s exploration strategy or operations, John and Richard just shared Zion’s story.

A few months ago Zion’s stock took off again (from about $4.75 to nearly $7.00). Why? Part of the reason may have been that Zion announced it had reached target depth on their Ma’anit-Joseph #3 well. Another part may have been that the Dow Industrial Averages jumped at the same time … most stocks were going up, Zion’s did too.
Just lately, Zion’s stock has taken a nosedive. Why? Part of the reason may be that testing showed Zion’s Ma’anit-Joseph #3 to be ‘non-commercial’. Another part of the reason may be that Stock markets (in the US and abroad) took an historic nosedive in the last few weeks. Noble Energy has discovered the largest gas find in Mediterranean history and their stock dove 20% when the markets went into free fall.

What’s the moral to my story?
I’m not a stock analyst and don’t want to be. To me it’s just gambling; trying to predict tomorrow with averages, spreadsheets and theories … or rumors. Events are going to happen outside and inside a company that’ll probably make it’s stock go up and down. If you’re a day-trader (someone who buys and sells daily, gambling on tomorrow’s stock report) I guess daily ‘events’ float your boat.

But (I don’t believe) a company like Zion Oil & Gas is for day traders. It’s for those of us in it for the long run. The only two ‘events’ worth paying attention to would be a commercial discovery or Zion closing up shop. They haven’t made a commercial discovery (yet) and they have no intention of closing up shop. So until either of those two events transpire I’ll look for long term strategy to achieve long term results. Is the company doing what it set out to do?

Zion Oil & Gas was founded to discover oil and gas in Israel. They’re doing just that. They’ve drilled four wells to date, none commercial, but they’ve learned from each well. Zion’s Chief Geologist Stephen Pierce says that, on average, only one in nine exploration wells produces oil or gas in commercial quantities. A few years ago, because they knew they had to go deep, Zion flew to Turkey and secured a drilling rig twice the size of anything available in Israel. That rig just finished the deepest well ever drilled in Northern Israel. This week Zion geologists will participate in advanced mapping methods training host by one of the world’s best (if not the best) seismic software companies. Zion’s geology and exploration teams work every day to cut down those one-in-nine odds.

Zion started out with a 28,800-acre license. Today they have 218,000 acres of exploration territory and have applied for another 312,000 acres. 530,000 acres of exploration territory would make Zion the largest, by far, onshore exploration company in Israel.

In the last few years Zion has continued to successfully raise capital in spite of the worst economic/investment environment this country has experienced in decades. Today, they’ve got $29,260,00 in the bank.

When Zion started, discovering oil and gas in Israel was a myth; today it’s a fact, backed up by the world’s biggest gas find in more than a decade, a USGS study stating (conservatively) that there are significant oil and gas reserves in Israel, and recent news that Israel contains the world’s second largest deposits of oil shale.

Bottom line:
I’ll look at Zion’s stock price after they’ve discovered oil. Until then, I’ll look at Zion for how well they’re accomplishing their mission. More importantly, I’ll look to the One who gave Zion the mission. Israel has already discovered more natural gas than they will ever use. I believe oil is right behind it – G-d has already promised it.


30 Responses to ““Special Report – Zion Oil””

  1. Henry Andringa on August 16th, 2011 11:44 am

    I noticed the amount $29,260,00; should that not be $29,260,000

  2. Last Days on August 16th, 2011 11:46 am

    Very well said, Steve. I use to look at the Yahoo message board but grew tired of the haters. This company and stock is a long term item. Zion Oil is still here and here to stay I believe. John Brown is an incredible man of faith and has a great knack for finding great people to join in the mission.

    I believe the best days are yet to come!!

  3. admin on August 16th, 2011 11:49 am

    Quite right Henry – $29,260,000

  4. admin on August 16th, 2011 11:50 am

    Amen …

  5. michael darby on August 16th, 2011 12:04 pm

    Amen to your comments & conclusions, Brother Steve! I’m all in, as they say…and for the long haul!emper Fi, Michael

    Bless you & Semper Fi!


  6. Russell Vick on August 16th, 2011 12:11 pm

    I made up my mind a long time ago, that I was going to stick with Zion oil…I was not going to by and sell trying to make money off the daily share price (I know that some do)..I stopped checking the daily share price a long time ago..God will bless Israel, however we know from the Bible there will be dark days ahead for the country, but not till God says its time for Israel to suffer that fate..In the mean time, I will stick with Gensis 12:3, and let it be, and continue to pray for the nation and its wellfare and will not sell any shares…I have between 7 and 8 thousand shares, and wish I had more….if the share price goes down so be it, and should it go up so be it….I pray for Zion Oil

  7. Vic Doumar on August 16th, 2011 12:15 pm

    The stock has spiked parabolic twice in the last year and a half or so. Both times I thought somebody knew something that wasn’t yet public. But, what it was, was ZN was added to the Russell 2000 index a year or so ago, and all the index funds that automatically buy every stock on the index were buying it to align themselves with the new composition of the index.

    This last one was the same thing. ZN was added to an index (I forget which), and a whole bunch of automatic purchases all happened at once. The thing to do was to sell into this, and buy back when it went back to normal.

    Of course, the next time, it could really be that they finally tap into that 50 trillion barrell reservoir that’s buried REALLY deep. If that happens, it will go up and keep going.

  8. Lynda on August 16th, 2011 1:15 pm

    I understood that Zion was going to carry out some further studies to determine where the hydro carbons were coming from that seemed to be under significant pressure during drilling. Have those tests been carried out and if so what were there results.

  9. Ron on August 16th, 2011 1:15 pm

    I agree with the newsletter. Keep up the good work.

  10. GEORGE H. TERRELL on August 16th, 2011 1:31 pm


  11. Bill Baker on August 16th, 2011 1:46 pm

    I agree with all said, the ups and downs of the stocks are the ups and downs of the stocks and those that play those games.. I’m not one of them, I don’t have alot, but I own this stock and stock in my own company. That I own other stock is a rare event in my life. The time on the clock is close, many things need to occure in specific time for the next to fall into place, the game? is not a game, is not about stock or oil, but about Israel and world events. The means or catalyst to the to the end placing Israel in the position it needs to attain, which it will soon. . For these to meet in time, as close as the clock seems to be running, it will be anytime very soon that this piece of the puzzle also falls together so that the rest will fit as well. If oil is to be the catalyst, then many things to make it commerical must happen, these take some time, so the finds must happen soon.

  12. Bill Baker on August 16th, 2011 1:58 pm

    getting exciting isn’t it!!

  13. dean staples on August 16th, 2011 3:24 pm

    Thank you admin for your timely input regarding daily ZIOn stock price.I have said all along that until ZIOn finds oil, the SP is fairly non material..ALL of us would prefer a $7.00 value than $3.50 , but as you say the only two REAl important variables would be if ZION is going out of business or if they have found oil..WHILE I am here, I would like also to say, I hope ZION drills deeper on their MN3 well..IF we are at 19,000 feet, we should try to prove the bible wrong by going to the DEEP that COUCHETH BENEATHE and see. I believe ANDY SORELLE found at 22,000 feet on the FOOT of ASHER…Thanks for being here when we need you, brother and being a calming voice in the storm…ENJOYED your Louisiana 2010 video presentation of the MAP at the time of the CONQUEST..

  14. Craig Brown on August 16th, 2011 3:29 pm

    Great article Steve, way back before i bought Zion stock, i heard Hal Lindsey speak of Zion Oil and the vision for it’s success. I knew then i would be a share holder and that Zion would find oil one day. That was a few years ago and i can understand the impatience a lot of people have but in my mind nothing has changed, Zion will find oil when they find it. I just think their getting closer and closer to that find as they learn more about the best places to drill! Good luck and may god bless the entire Zion effort !

  15. Tom Slomovic on August 16th, 2011 5:39 pm

    Should have also mentioned the onshore oil find of Givot Olam Oil with their success at the Meged 5 well. Should provide further optimism for Zion Oil.

  16. Darlene mcnabb on August 16th, 2011 6:29 pm

    Keep the faith!!! God is in control.

  17. Eddie Kiser on August 16th, 2011 6:30 pm

    Amen well said…It will happen when God allows it to happen! All in his timing,Be still and know that he is G-d! And he will provide and keep his promise!

  18. Doug Coomer on August 16th, 2011 8:15 pm


    Thanks very much for your excellent article on Zion. I agree and intend being a long term shareholder. A few questions please.

    Do we know if any of the oil shale recently discovered in Israel is within the existing and proposed Zion acreage (total of 530,000 acres)? Are all the 530,000 ac within the Levant Basin which is where the USGS study referenced, I believe?

    Also a final question. Do we know the depths of the discoveries(some oil but mostly NG) by Noble offshore and further do we know how this depth relates to the depth drilled in the Manit-Joseph#3 well?
    Your communication is appreciated. Doug Coomer

  19. Justin Miller on August 16th, 2011 8:35 pm

    Well said Mr. Spillman! God’s will will be accomplished no matter what the market price. Psalm 34:8 says “taste and see that the Lord is good”. It doesn’t say, “see and taste”. Anybody can “see and taste” but only those with faith will “taste and see”…

  20. Julia Hahn on August 17th, 2011 2:12 am

    Very nice informative letter.
    It Will come!! Standing with you
    Julia Hahn/KY

  21. Carl and Marjorie Collins on August 17th, 2011 11:17 pm

    As has been said by John Brown, “It’s not if we find oil and gas, it’s WHEN!” There is a song we used to sing years ago, “If Jesus said it I believe it, His Word cannot lie. If it’s written in the bible I’ll believe it ’till I die, Though the mountains be removed and cast into the sea, His Word will live fo.ever throughout eternity.” Actually, G-d’s Word will live forever even if we didn’t believe it!

    In His time a massive discovery by Zion Oil & Gas will happen, so we wait patiently on the Lord and rest in Him.

  22. John Moorehouse on August 18th, 2011 12:40 pm

    great report and very encouraging

  23. Wesman on September 4th, 2011 7:16 am

    I like oil and wanna make money, money, money. Isn’t that the point of investing? Go Zion Oil! God promised us joy and prosperity. Ask and you shall receive, that’s His promise. So that means He’ll make us all wealthy “Christian Soldiers”, amen?

  24. rachel on September 9th, 2011 9:43 am

    i would urge nybody who has shares in Zoin oil to give abundantly when oil is discovered to the ministries spreading the gospel…..

  25. Bill Baker on September 21st, 2011 1:42 pm

    The price today at $1.50. What’s the process at this end. Does the company fall off the board if it hits below a dollar say? Is there limits? Is there continued values to these stocks if the price falls to say .50 cents or less than a dollar, or less than a quarter? I’m not a stock guy, so if you have this type of information, please post it.

  26. Dick & Margaret Hitch on September 22nd, 2011 10:50 am

    wait upon the Lord

  27. Maryann on September 27th, 2011 7:33 pm

    I’m not worried at all. It’s going to happen, we just don’t know G-d’s personal timeline. And, it’s really all up to Him isn’t it? As for us, we all need to keep the faith and just pray for it to happen. As far as I’m concerned I have the easy part in all of this and most of all I pray for John Brown and our Zion Oil and Gas family to remain strong and steadfast. They are doing all the hard work and I pray that G-d will keep them strong. The blessings will come.

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