Following the announcement that Zion Oil and Gas has reached its first casing point at a depth of 1,950 ft. into the Megiddo-Jezreel #1 (MJ #1) well, the oil company’s closing stock price dramatically rose by over 30%.
This great news comes exactly two weeks after Zion Oil and Gas officially began its onshore drilling of the MJ #1 well on its 99,000 acres of land in Northern Israel. Dustin Guinn, COO of Zion responded to this success, “We are pleased to announce that we have reached an early milestone in the drilling of the MJ #1 well. We are encouraged with the operational results to date and continued to be satisfied with the performance of the Zion staff and service providers with respect to their adherence to our strict safety expectations.”
The Dallas-based oil company intends on continuing to drill the well until it reaches a depth of 15,000 ft. The current success of its active drilling plan has grown more interest in Zion’s operations, thus resulting in the increase in stock price. Whereas, an incremental $0.67 (32.21%) increase in stock price (from $2.08 to $2.75) may appear menial, Zion’s (ZN) stock prices prior to closing have fluctuated reaching great highs rising to an even 60% increase. Accordingly, a 30-60% increase in stock value is by any means a milestone and a good indicator of how the market will respond as Zion continues to announce ongoing goals reached in its first drilling project! That being said, as Zion Oil and Gas has 13,000 ft. of depth left of the MJ #1 well that it intends to drill, it can expect a continued favorable response by the market as it continues to meet its ambitious operational objectives.