Jul. 16 at 1:13 AM
$ZNOG $ZNOG $ZNOG The company has begun the MJ-02 sidetrack drilling operations, which is the biggest potential catalyst for the stock.
The recent rally has been driven largely by optimism surrounding drilling progress. Some analysts continue to rate it as a speculative hold because of the lack of proven reserves. I'd continue holding rather than selling at a loss. If Zion announces encouraging drilling results, the stock could make another strong move. If drilling disappoints, it could also fall sharply. It's a very high-risk, high-reward position. The biggest catalyst is still the MJ-02 sidetrack drilling program. Zion has confirmed those operations are underway, but the market is waiting for actual drilling and testing results.
If the company announces encouraging hydrocarbon results, I think a move into the
$0.60–
$0.80 range is possible. A truly significant commercial discovery could send it much higher, but that's speculative.
