i thought the following would be brought up
'Zion encountered movable oil and gas in the well’s drilling mud during drilling. However, as of the date of this report on Form 10-Q, we are not able to confirm whether the well will be commercially productive or producible and we will not be able to do so until after we complete testing and evaluating the MJ#1 well.
Quarterly Report (10-q), Page 25, November 8, 2018
https://ih.advfn.com/p.php?pid=nmona&article=78651027
https://www.sec.gov/Archives/edgar/data/11313...htm';
'as of the date of this report'- this is possibly the most confusing language in the report but see below:
the 3rd qtr ended sept 30- thus the date of the 10q report is as of sept 30
just as the date of the financials is sept 30
thats why there is a subsequent events section-where one is only required to report events after sept 30 that will materially affect the static sept 30 financial statements, as i've already explained in a recent post
and i saw no statement in the 10q subsequent to sept 30 re testing
the following one line statement is the only thing in the subsequent event section: " Note 9 - Subsequent Events
(i) Approximately $326,000 was raised through the Company’s DSPP program from October 1 through 30, 2018."
there is nothing re testing in the subsequent event section and nothing is required to be said re testing after sept 30 in the sept 30 report bc such does not materially affect the sept 30 financial statements
so the date of the report is sept 30 -the date of writing wold be an exception to the general rule-see below -the presumption is the date of the report as of sept 30]-
they've already said in the june 19 pr they arent going to provide results til testing of primary zones was finished at a minimum- a protocol i believe they are returning to after the intermediate report of aug 16-17 caused as much confusion as answers,especially to those who didnt read it carefully- something i've also posted previously and recently
and the aug 16 pr said,e.g., " Did We Find Oil?
1.We encountered oil at a depth of between 16,415 ft and 16,500 ft during drilling operations, when we circulated bottoms up. The oil was separated and tested internally and externally through our mudlogging company’s chromatograph, indicating “Light Oil” based on the chemical composition of the analyzed stream."as already reported by axle? and others
also, not being able to verify the well as of sept 30-they did no testing in september bc of the unusual complex of 9-11 holidays in a 22 day time frame- is commercially producible is not the same as zn saying they have found no oil;
in addition to the feb 13 pr, they noted in the aug 17 filing re the aug 16 pr that some amount of oil was found in the completion fluid resulting from the small acid stimulation job
from page 5 of the 10q
'Testing of the well is ongoing and the Company expects that testing will be concluded in the fourth quarter of 2018.
Depending on the final outcome and results of the current MJ #1 well and having adequate cash resources, multiple wells could be drilled from this pad site as several subsurface geologic targets are reachable using directional well trajectories.'
zn has NOT concluded that the well will not be commercial as some imply nor has zn concluded that the exploratory well will not discover a commercial field -
clearly those are still possibilities -but just as those who said there was no oil before the well was spudded had no cause to say such, there is no cause to say this well will not locate a commercial field within the active petroleum system-which could lead to multiple wells directionally drilled from the same pad, as the company continues to say
'During the nine months ended September 30, 2018, and 2017, the Company did not record a non-cash impairment charge of its unproved oil and gas properties (see Note 4).'from p.7
[such may very well be recorded if the well discovered no commercial field after testing was completed]
'Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $34,083,000 and $21,695,000 as of September 30, 2018, and December 31, 2017, respectively'
its always a good thing when there is no impairment charge[which is like writing off an asset-years ago ship co's were constantly declaring impairment charges just as some gold co's are now]
from p.7
again the default assumption re statements in a 10q are that they are as of the end of the preceding qtr-in this case sept 30- unless clearly specified otherwise or noted in the subsequent events section
since neither of the above exceptions apply here the general rule that the date of the report is sept 30 applies unless proven otherwise
'Zion encountered movable oil and gas in the well’s drilling mud during drilling. However, as of the date of this report on Form 10-Q, we are not able to confirm whether the well will be commercially productive or producible and we will not be able to do so until after we complete testing and evaluating the MJ#1 well.
Quarterly Report (10-q), Page 25, November 8, 2018
https://ih.advfn.com/p.php?pid=nmona&article=78651027
https://www.sec.gov/Archives/edgar/data/11313...htm';
'as of the date of this report'- this is possibly the most confusing language in the report but see below:
the 3rd qtr ended sept 30- thus the date of the 10q report is as of sept 30
just as the date of the financials is sept 30
thats why there is a subsequent events section-where one is only required to report events after sept 30 that will materially affect the static sept 30 financial statements, as i've already explained in a recent post
and i saw no statement in the 10q subsequent to sept 30 re testing
the following one line statement is the only thing in the subsequent event section: " Note 9 - Subsequent Events
(i) Approximately $326,000 was raised through the Company’s DSPP program from October 1 through 30, 2018."
there is nothing re testing in the subsequent event section and nothing is required to be said re testing after sept 30 in the sept 30 report bc such does not materially affect the sept 30 financial statements
so the date of the report is sept 30 -the date of writing wold be an exception to the general rule-see below -the presumption is the date of the report as of sept 30]-
they've already said in the june 19 pr they arent going to provide results til testing of primary zones was finished at a minimum- a protocol i believe they are returning to after the intermediate report of aug 16-17 caused as much confusion as answers,especially to those who didnt read it carefully- something i've also posted previously and recently
and the aug 16 pr said,e.g., " Did We Find Oil?
1.We encountered oil at a depth of between 16,415 ft and 16,500 ft during drilling operations, when we circulated bottoms up. The oil was separated and tested internally and externally through our mudlogging company’s chromatograph, indicating “Light Oil” based on the chemical composition of the analyzed stream."as already reported by axle? and others
also, not being able to verify the well as of sept 30-they did no testing in september bc of the unusual complex of 9-11 holidays in a 22 day time frame- is commercially producible is not the same as zn saying they have found no oil;
in addition to the feb 13 pr, they noted in the aug 17 filing re the aug 16 pr that some amount of oil was found in the completion fluid resulting from the small acid stimulation job
from page 5 of the 10q
'Testing of the well is ongoing and the Company expects that testing will be concluded in the fourth quarter of 2018.
Depending on the final outcome and results of the current MJ #1 well and having adequate cash resources, multiple wells could be drilled from this pad site as several subsurface geologic targets are reachable using directional well trajectories.'
zn has NOT concluded that the well will not be commercial as some imply nor has zn concluded that the exploratory well will not discover a commercial field -
clearly those are still possibilities -but just as those who said there was no oil before the well was spudded had no cause to say such, there is no cause to say this well will not locate a commercial field within the active petroleum system-which could lead to multiple wells directionally drilled from the same pad, as the company continues to say
'During the nine months ended September 30, 2018, and 2017, the Company did not record a non-cash impairment charge of its unproved oil and gas properties (see Note 4).'from p.7
[such may very well be recorded if the well discovered no commercial field after testing was completed]
'Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $34,083,000 and $21,695,000 as of September 30, 2018, and December 31, 2017, respectively'
its always a good thing when there is no impairment charge[which is like writing off an asset-years ago ship co's were constantly declaring impairment charges just as some gold co's are now]
from p.7
again the default assumption re statements in a 10q are that they are as of the end of the preceding qtr-in this case sept 30- unless clearly specified otherwise or noted in the subsequent events section
since neither of the above exceptions apply here the general rule that the date of the report is sept 30 applies unless proven otherwise
