There's nothing like striking oil to get investors rallying around a stock. That's exactly what Zion Oil & Gas (NASDAQ:ZION) experienced today, making it a top play on the NASDAQ exchange after noticing a buildup of gas in its Megiddo-Jezreel #1 well after returning from Shabbat, a weekly period of rest in the Jewish faith observed from just before sunset on Friday until sundown on Saturday.
The company said that while cleaning the well bore during the current open hole wireline logging that it encountered free-flowing hydrocarbons while circulating drilling mud.
Management said it was sanguine about the potential after calling total depth of the well at just over 5,000 meters. Subsequent to making the first of three open hole logging runs, the decision was made to ream the bottom to clean the hole in preparation for the second, only to notice a continued and significant increase in gas was followed by clear evidence of oil in the mud from the bottom of the well.
Now the company plans to drill up to another 70 meters over the next couple days, barring any complications. For full disclaimer, the company said no assurances can be made about commercial viability at the well; only asking shareholders to be patient until more comprehensive updates can be provided.
Shareholders weren't waiting around for that, buying up the stock all the way to the closing bell. Shares of ZION wrapped the day up by 87.0% at $4.30, marking the highest level since last July.
