Zion Oil & Gas: could Israel’s #1 shit co finally take off?

Core Insights - Some of the worst mining stocks have recently become significant market winners, with The Metals Company experiencing a 10x surge in stock price and a 25x increase in its warrants since January 2025 [1] - Zion Oil & Gas, a company focused on oil and gas exploration in Israel, has seen its stock price increase by up to 9x from its all-time low of 3 cents in autumn 2024, despite a 22% decline in oil prices [6][10] Company Overview - Zion Oil & Gas was founded in the early 1980s based on the belief that biblical references indicated the presence of oil in Israel [3][4] - The company has faced significant challenges, including a 95% loss in stock value by late 2024 and a history of unsuccessful exploration efforts [4][6] - Despite its controversial background, Zion Oil & Gas has conducted geological and geophysical studies similar to other exploration companies [10][11] Recent Developments - The company signed an agreement with the Israeli government in 2023 to explore a new area, the Megiddo Valleys License 434, covering 302 square kilometers [11] - Drilling commenced in October 2024, coinciding with the lowest share price, and the company reported gas flowing to the surface during drilling, indicating potential for a productive reservoir [12][13] Market Performance - Zion Oil & Gas has a current market valuation of USD 190 million, despite a history of frequent share issuances and high management overhead [16] - The company lost its Nasdaq listing in 2020 and operates in the OTC market, which has not deterred its stock price recovery [14][15] Investor Sentiment - The company continues to attract interest from faith-based investors due to its unique backstory, although there are concerns about its long-term viability and the potential for significant discoveries [18]