The previous three posts (2 by Micro, 1 by Mountaineer) have alluded to observations I have made for several years regarding Zion. They are a rare company that stands in two different spheres. One leg is planted firmly on straight-forward wildcatting and business principles with the idea to hit commercially viable reserves of oil. The other leg is planted squarely on Christian-Judaic principles as written in the Old Testament. This attracts funds not only from business and the normal investing community, but also by Christian and Judaic people. The latter group (i.e. Christian and Judaic people) are not only interested in getting a great ROI, but also provide investment as a donation to God's purposes. They agree with John Brown regarding his interpretation that the Bible is pointing to a large reserve of oil in the Heel of Asher. Therefore, as long as the company maintains honesty and transparency the latter group will continue to provide funds that mimic a company that has a viable income from operation. That is, the company will not be abandoned simply because it doesn't find oil quickly. It is true that this will dilute individual shares, but this is accepted as just part of the faith.

Many years ago, John Brown spoke at a Sunday meeting at a church that I was attending. Afterwards, several people, including myself, began to invest. This is very much like donating to Billy Graham, Salvation Army, Teen Challenge,...or etc. None of these organizations have any income, but are supported by contributions of church folk. This is a tremendous advantage beyond a normal wildcatting business as their income is far more stable.

The fact that they make continuous improvements in their business operations show that they intend to stay until they get the job done. I refer to activities like the 3D scan, purchase of a rig,...etc. Buying a rig indicates to me that they are positioning themselves for several more attempts in the future and are willing to make a large purchase to decrease the cost of each individual future drilling effort.

Furthermore, it is unusual to have a company that is essentially a US company operating entirely in a foreign nation. I am not sure of how to evaluate this, but suspect it might provide insulation from the vagaries of the US economy.

So what can we expect? Whenever they start a drill their PPS begins rising rapidly. Speculative fervor will drive it fairly high. Lots of money will flow in similar fervor as the selling of lottery tickets if the pot is large. I anticipate that this fervor will drive it to $3-$6 range during the next drill. For those of us that bought substantial shares at the $0.20-$0.50 this is a very impressive ROI. I have had to discipline myself to sell a bit of my holdings during the times of fervor to provide funds for purchase of more stock should they not hit commercially viable oil. If they do fail then they will plummet which, of course, is a great time to buy as they prepare for the next drill.

I muse how much I really want them to hit massive amounts of oil. If they hit something, say, similar in size of the off-shore gas reserves then all I can say is "Wow"! Holders of Zion Oil will be VERY well rewarded. However, this will also attract world-wide attention by nations who think the oil should be theirs and not Israel's. This includes not only the antagonistic nations on their immediate borders and Palestinians, but also, Russia, China...others. Hmnnn...!