MJ1 vs. MJ2 and Insider Investing
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Posted On: 01/14/2021 7:31:30 AM
Micro, go back to Jan 2020, 2019 etc.
This is the time of year when Zion's directors exercise their options. They come in a flurry in January. The interesting part this year is that they are at a price of .915/share. In the past, they were at .01/share. Now either the directors just invested close to 1/2 million (collectively) in the company or they exercised options that will cost 1/2 million (collectively) when they decide to convert them to shares. If it's the former, that would be a bullish indicator. If it's the latter, that can still be seen as bullish.
The really interesting part is that there has been no fund raises this time around. The Funding for MJ2 is coming from somewhere or someone. It would appear that Zion has found a large funding source as they have not come out and asked for financial assistance for MJ2.
Zion did not ask for funding when they purchased a rig, they have not asked for funding in a very long time. It gives the impression that who ever is funding this whole operation must have some form of inside information yet they remain a silent partner. If they have seen the 3D and the data from MJ1, then they have probably signed a Non Disclosure agreement and cannot state anything publicly as to the knowledge they are basing their investment on.
The first casing of MJ1 took place at approximately 2000 feet. We should be coming up to that point here very soon for MJ2. It will be interesting to analyze that press release (if there is one). It may hold a lot of information that a true oil-man could analyze and provide information as to the nature of MJ2.
One thing for sure, MJ2 is not a wildcat well. With MJ1, it was made very clear from Zion that MJ1 was a wildcat well. In other words, Zion was drilling blind based on 2D seismic and analysis of the grounds where they were drilling.
MJ2 is based on 3D seismic and all the data that they obtained during MJ1. They know exactly what they are drilling into. With all the investment into this operation since last year, one could speculate they know exactly what they are drilling for.
This is indeed a whole new way for Zion to do business.
This is the time of year when Zion's directors exercise their options. They come in a flurry in January. The interesting part this year is that they are at a price of .915/share. In the past, they were at .01/share. Now either the directors just invested close to 1/2 million (collectively) in the company or they exercised options that will cost 1/2 million (collectively) when they decide to convert them to shares. If it's the former, that would be a bullish indicator. If it's the latter, that can still be seen as bullish.
The really interesting part is that there has been no fund raises this time around. The Funding for MJ2 is coming from somewhere or someone. It would appear that Zion has found a large funding source as they have not come out and asked for financial assistance for MJ2.
Zion did not ask for funding when they purchased a rig, they have not asked for funding in a very long time. It gives the impression that who ever is funding this whole operation must have some form of inside information yet they remain a silent partner. If they have seen the 3D and the data from MJ1, then they have probably signed a Non Disclosure agreement and cannot state anything publicly as to the knowledge they are basing their investment on.
The first casing of MJ1 took place at approximately 2000 feet. We should be coming up to that point here very soon for MJ2. It will be interesting to analyze that press release (if there is one). It may hold a lot of information that a true oil-man could analyze and provide information as to the nature of MJ2.
One thing for sure, MJ2 is not a wildcat well. With MJ1, it was made very clear from Zion that MJ1 was a wildcat well. In other words, Zion was drilling blind based on 2D seismic and analysis of the grounds where they were drilling.
MJ2 is based on 3D seismic and all the data that they obtained during MJ1. They know exactly what they are drilling into. With all the investment into this operation since last year, one could speculate they know exactly what they are drilling for.
This is indeed a whole new way for Zion to do business.
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(0)Zion Oil & Gas, Inc. (ZNOG) Stock Research Links
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