April 25, 2013 To: Zion’s Family of Believer’s and Friends Subject: Prayer Request: “Good News from Zion” Thank you all for your many emails, letters and phone calls of support and may God bless you all as you continue to pray for Israel and Zion Oil. I believe that what all is written in the Bible is true and I have asked Him for the oil in Israel and He promised that He would do it (John 14: 13, 14). So as I wait, I expect to see it happen soon (Psalm 37: 5) and I do not doubt that it will (Romans 4: 20, 21) for: “Faith is not just believing God can, it is knowing that He will do it.” It is also written, “That without faith it is impossible to please Him” (Hebrew 11: 6) and I want to please God by believing and trusting Him to fulfill all His promises that He has made to Israel and Joseph in (Genesis 49: 25, 26) and (Deuteronomy 33: 13-16). So, it is “by faith” (Hebrew 11: 1) that we press on and I am asking all of you for your prayer support that God will favor Zion, by the Government of Israel awarding us with the new Megiddo/Jezreel License which we applied for on April 16, 2013 (click map to see larger Biblical Map). “They shall call the people unto the mountain; there they shall offer sacrifices of righteousness: for they shall suck of the abundance of the seas, and of treasures hid in the sand.” (Deuteronomy 33: 19) Also, as you can see by the attached email and Shale articles, other Biblical prophecies that I believe in (Deuteronomy 32: 13) and (Job 29: 6) are now being fulfilled onshore by Genie Energy in Israel. According to Dr. Harold Vinegar (Chief Scientist) and Dr. Yuval Bartov (Chief Geologist) from Israel Energy Initiatives in Jerusalem, this ‘shale’ in Israel is a type of flinty rock. Recently a meeting was held in the Zion Dallas Offices with Genie Oil & Gas Executives which included Howard Jonas (Chairman), Claude Pupkin (CEO) and Avi Goldin (CFO) to discuss the objectives of both companies. It is my personal belief that just as we are called to Israel, they are too (Acts 3: 25) and because both of our objectives are one in the same, which is to bless Israel with oil and because of this, we have pledged our support to assist them in any way that we can (and they also need your prayer support). “Blessed is the nation whose God is the Lord; and the people whom He hath chosen for His own inheritance.” (Psalm 33: 12) Shalom, John Brown(Isaiah 28:26) CLICK HERE for “email & shale articles”. SHARE this letter from John: Share Tweet Share +1 Forward to Friend FOLLOW Zion Oil & Gas here: Facebook Twitter LinkedIn Website

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3 New Announcements from Zion Oil & Gas, Inc.

Share Tweet Share Forward to Friend Zion Oil & Gas NewsletterThursday, April 18, 2013 Dear Shareholder and/or Friend of Zion: This is an update of noteworthy events that have occurred since our last newsletter. In between updates, you should consult our website, press releases, and our SEC filings to keep up with company developments. ANNOUNCEMENT 1:I am excited to inform you that on April 16, 2013, Zion submitted our application for a new petroleum exploration license in the Megiddo-Jezreel Valley area of Israel. We filed the application with Mr. Alexander Varshavsky, Israel’s Petroleum Commissioner within the Ministry of Energy and Water Resources. The proposed license area is contiguous with and directly abuts our existing Jordan Valley License area and extends westward to the Megiddo and Jezreel Valley. The proposed license area covers approximately 98,000 acres, largely in a broad expanse of agricultural areas.

Within two weeks, we will travel to Israel to make an in-person technical presentation in support of our application to the Petroleum Commissioner.Zion’s application represents only the second instance in which companies have applied for an onshore petroleum exploration license since Israel issued new regulatory guidelines in June of 2012.The new guidelines require much more additional work and corporate documentation than in prior years.  As a result, our application is rather voluminous and is comprised of over 200 pages. The Ministry’s new evaluation process requires several months before the application can be approved.  If the new license is approved, we will still need to acquire new seismic data before we can confirm our preliminary well site location for our first exploratory well in the Megiddo-Jezreel Valley area. ANNOUNCEMENT 2:Jordan Valley LicenseAs we reassessed our existing seismic data in preparation for submitting our new Megiddo-Jezreel License application, we recently identified an exploration lead in the southern portion of our existing Jordan Valley License. As a result, we have a renewed sense of excitement about this additional lead potentially developing into a drillable prospect. Asher – Menashe License (Elijah #3 Re-Entry Well) As we reported in our March 28 newsletter, we will seek the final one-year extension of the Asher-Menashe License beyond its scheduled expiration of June 9, 2013 in order to conduct additional in-well testing operations at the Elijah #3 well and/or conduct other needed activities. Joseph License On April 10, 2013, we submitted to the Petroleum Commissioner an application for a one-year extension to our existing Joseph License. ANNOUNCEMENT 3:On March 27, 2013, we launched a Dividend Reinvestment and Common Stock Purchase Plan that provides new investors and existing stockholders a convenient and inexpensive way to purchase shares of our common stock directly from Zion, without paying a brokerage commission, for a minimum investment of only $250 for new investors.  Investors may initiate the transaction through our website at: http://www.zionoil.com/dspp If interested, please visit our website and review the prospectus supplement that we filed with the U.S. Securities and Exchange Commission (SEC) on March 27, 2013 pursuant to Zion’s shelf registration statement (File No. 333-174266). Before investing in Zion Oil and Gas, Inc., you should undertake a thorough legal and financial review of the Prospectus and other relevant SEC filings. This announcement is neither an offer nor a solicitation of any offer. Zion’s Annual Shareholder Meeting will be held on Tuesday, June 11, 2013 in Dallas, Texas at The Westin Galleria Hotel. “And I will bless them that bless thee…” Genesis 12:2-3 Victor G. Carrillo  President and COO Zion Oil & Gas FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, the presence or recoverability of hydrocarbons in our license areas, results of additional in-well testing in the Asher-Menashe License area, the likelihood that we will be awarded the application that we filed for the Megiddo-Jezreel area license, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements. Contact Information: Website: www.zionoil.com Brittany Russell (dallas@zionoil.com) Zion Oil & Gas, Inc. 6510 Abrams Rd., Suite 300 Dallas, TX 75231 Tel: 1-214-221-4610 or 1-888-891-9466 Share this newsletter with your friends: Share Tweet Forward to Friend Share Follow us: Facebook Twitter Website LinkedIn Copyright © 2013 Zion Oil & Gas, Inc., All rights reserved.

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April 18, 2013 16:20

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231

Brittany Russell:

Telephone: 214-221-4610
Email:

The post Zion Applies for New Exploration License in Megiddo-Jezreel Valley Area, Israel appeared first on Zion Oil and Gas, Inc..

Friend on Facebook Follow on Twitter Forward to a Friend If you have questions regarding the Unit offering, the Direct Stock Purchase Plan or need assistance filling out the Enrollment Form please contact our Plan Agent, The Registrar & Transfer Company: 1-800-368-5948 OR FOR PERSONAL ASSISTANCE, Contact Zion’s Investor Relations Department: Phone: (214) 221-4610, Ext. 130 (Please leave a message) Email: Invest@ZionOil.com Website: www.Zionoil.com/dspp   The Direct Stock Purchase Plan is intended to be a convenient and simple way for you to purchase Zion stock directly from the company, allowing you to build your long-term investment over time while avoiding those dreadful brokerage fees. The minimum investment is $250.00. Once you have your account set up with our Plan Agent, the Registrar and Transfer Company, you may invest as little as $50.00 at a time. There is also an option for automatic monthly withdrawal directly from your bank account. As mentioned, for a limited time only, you can purchase Units directly through the Direct Stock Purchase Plan. A Unit is comprised of one share of Common Stock and one Warrant and is currently being sold for $2.50 each. The Unit Offering will only be available through August 30, 2013. A Warrant is an option to purchase stock for a set price over a set period of time. If you purchase Units through the Direct Stock Purchase Plan, you will get one share of Common Stock and one Warrant to purchase one share of Common Stock for a set price of $2.00. The Warrant is good for five years. You can exercise your Warrants from September 30, 2013 through September 30, 2018.

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This is an update of noteworthy events that have occurred since our last newsletter. In between updates, you should consult all of our SEC filings, press releases, and website to keep up with company developments.

Recent Israel Trip

In February 2013, John Brown, Dr. Lee Russell, and I traveled to Israel to meet with the Israeli Petroleum Commissioner, Alexander Varshavsky and other Ministry officials, regarding a variety of strategically important company issues. Joining us at the meeting were Dr. Yehezkel “Charlie” Druckman (Board Director and Technical Advisory Group Co-Chair), Ilan Sheena (Chief Financial Officer), Glen Perry (Engineering and Operations Consultant), and Jeffrey Moskowitz (Israeli outside counsel).

Among other things, we discussed our plans to submit an application for a brand new license area.

Newly Designated VP of Israel Exploration

Dr. Yehezkel “Charlie” Druckman, on our Board of Directors since 2005, is our newly named Vice President of Israel Exploration (replacing the retiring Dr. Kashai). He will also serve as our Management Liaison and Representative to Israel’s Petroleum Commission. Dr. Druckman was the Petroleum Commissioner for the State of Israel from 1995-2004, where he supervised the licensing of petroleum rights both onshore and offshore Israel. He is a PhD petroleum geologist with over 40 years of petroleum industry experience. Dr. Druckman graduated from the Hebrew University in Jerusalem with BSc, MSc and PhD degrees in Geology and he is a member of the American Association of Petroleum Geologists and the Geological Society of Israel.

Dr. Yehezkel “Charlie” Druckman

Future Exploration Plans

In evaluating our seismic and geologic database, we have identified areas of potential petroleum exploration interest that are outside our current license areas. We are in the process of applying to the Israel Petroleum Commissioner for a new petroleum exploration license that is contiguous with and directly abuts our existing Jordan Valley License area and extends westward to the MegiddoValley (and includes the JezreelValley). We intend to submit and present our application for the Megiddo-Jezreel License to the Petroleum Commissioner in April 2013. If the new license is granted, we will still need to acquire new seismic data and other geological information before we can identify and recommend the site of our next exploratory well in the Megiddo-Jezreel License.

Operations

Asher-Menashe License (Elijah #3 re-entry well)

In early November 2012, we re-entered our Elijah #3 well for a second time to acquire new geological information (reservoir pressure and formation fluids data) to better evaluate the hydrocarbon potential of a shallower zone that Zion penetrated while drilling the well in 2009/2010.

We have reconsidered our prior decision to not pursue additional exploration activities at the Elijah #3 well. Even after the 2012 re-entry operations during which we collected and analyzed large amounts of data, we are left with unresolved questions regarding the overall effect of leaving the borehole filled with overbalanced mud for 2½ years after we suspended drilling operations in February 2010 until we re-entered the well in the summer of 2012. It is possible that any oil or gas migrating from offshore may have been flushed away from the borehole by the overbalanced mud over the 2½ years the well sat idle. Therefore, Zion will seek the final one-year extension of the Asher-Menashe License beyond its scheduled expiration of June 9, 2013 in order to conduct additional in-well testing operations at the Elijah #3 well and/or other needed activities.

We also continue to evaluate potential hydrocarbon leads in other parts of our Asher-Menashe License.

Jordan Valley License

We recently identified a Cretaceous lead in the southern portion of our existing Jordan Valley License as we reassessed our existing seismic data in preparation for submitting our new Megiddo-Jezreel License application. We have a renewed sense of excitement about the possibility of this lead developing into a drillable prospect but we need more seismic data and time to explore this.

Key Employee Retirement

While in Israel, we bid a bittersweet farewell to a dear friend and colleague as he retired from Zion Oil and Gas.  Dr. Eliezer Kashai, Zion’s VP of Israel Exploration and Chief Geologist, has been a longtime and faithful employee who decided to take “early retirement” at the age of 90!  Our Israel office staff had a farewell luncheon with Dr. Kashai, his wife and friends.  We will indeed miss Dr. Kashai’s keen geologic mind and ready wit but we wish him a wonderful retirement.

Dr. Eliezer Kashai and John Brown

Direct Stock Purchase Plan

Yesterday, March 27, 2013, we launched a Dividend Reinvestment and Common Stock Purchase Plan (the Plan) that offers, among other things, to new investors and existing stockholders a convenient and inexpensive method to purchase shares of our common stock directly from Zion, without a brokerage commission, for a minimum investment of only $250 for new investors.  NASDAQ has reviewed the plan and expressed no objections and Zion’s Board of Directors has approved the Plan. Investors will be able to initiate the transaction through our website. We issued a press release yesterday explaining the Plan. Click here to see the press release.

For full details of the offering please review the prospectus supplement (that contains a description of the rights offering and other information) that we filed with the Securities and Exchange Commission. The prospectus supplement is available on our website or if you Click here.

Annual Shareholder Meeting

We would like to provide advance notice of Zion’s Annual Shareholder Meeting which will be held on Tuesday, June 11, 2013 in Dallas, Texas at The Westin Galleria Hotel. 

“And I will bless them that bless thee…“

Genesis 12:2-3

Victor G. Carrillo

President and COO

Zion Oil & Gas

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, the presence or recoverability of hydrocarbons in our license areas, plans to apply for new exploration licenses and the likelihood of being awarded these licenses, results of additional in-well testing in the Asher-Menashe License area, the likelihood that we will be awarded the application that we intend to file for a new license area, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.

Contact Information:

Website: www.zionoil.com

Brittany Russell (dallas@zionoil.com)

Zion Oil & Gas, Inc.

6510 Abrams Rd., Suite 300

Dallas, TX75231

Tel: 1-214-221-4610 or 1-888-891-9466

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Dallas, Texas and Caesarea, Israel – March 27, 2013 – Zion Oil & Gas, Inc. (NASDAQ GM: ZN) today announced the introduction of a Dividend Reinvestment and Common Stock Purchase Plan for existing shareholders and prospective investors. The Plan allows investors to purchase shares of Zion’s common stock directly from the Company and reinvest cash dividends (when and if Zion pays dividends in the future), without the payment of fees and commissions typically charged by stockbrokers for small transactions.

Registered stockholders and other interested first-time investors can enroll in the Plan by simply completing and submitting an enrollment form. The minimum initial investment is $250 for new investors. Once enrolled in Plan, investors may make additional investments of $50 or more through automatic deductions from checking accounts or through optional cash investments. In addition, for a limited time period through August 30, 2013, investors can also purchase units of Zion’s securities, with each unit comprised of one share of common stock and one warrant to purchase an additional share of Zion’s common stock.

The Plan will be administered by Registrar and Transfer Company of Cranford, New Jersey (the “Plan Agent”), which also serves as the Company’s stock transfer agent. Stockholders and other interested parties may obtain a copy of the Plan prospectus and an enrollment form by contacting the Plan Agent by telephoning 1-800-368-5948 or visiting the Plan Agent’s website at www.rtco.com. You can also visit Zion’s website for additional information about the Plan (www.zionoil.com.)

This announcement is neither an offer nor a solicitation of any offer. The securities are offered by prospectus only, and only within those states and other jurisdictions in which the securities may be sold, and this announcement is neither an offer to sell nor a solicitation of any offer to buy in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities of any such state or jurisdiction. The offering will be made by means of a prospectus supplement that was filed on March 27, 2013 pursuant to Zion’s shelf registration statement (File No. 333-174266). Copies of the prospectus supplement are available for viewing on the website of the U.S. Securities and Exchange Commission located at www.sec.gov
Zion Oil & Gas, a Delaware corporation, explores for oil and gas onshore in Israel. It currently holds three petroleum exploration licenses: the Joseph License (on approximately 83,272 acres) and the Asher-Menashe License (on approximately 78,824 acres), both between Netanya in the south and Haifa in the north, and the Jordan Valley License (on approximately 55,845 acres), just south of the Sea of Galilee. Zion’s total license area amounts to approximately 218,000 acres.
Contact:
Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Brittany Russell:
Telephone: 214-221-4610
Email: invest@zionoil.com
www.zionoil.com

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Dear Zion Shareholders,

When I began this ‘Journey of Faith’ 32 years ago, what I didn’t expect was that it would take this long to find the oil nor did I ever expect that we as shareholders would ever see the day that our shares would go as low as they have recently. However, I want you all to know that we have all tried very hard to find the oil when and the way that we all wanted it to but it hasn’t happened. However, let me reassure you all that we do care about every one of you who have invested your hard earned money in Zion. Personally, I still intend to move forward and to concentrate on fulfilling the scripture and the Vision that I believe God has given me and to see this through until I see the oil flowing (2 Kings Chapter 7) but what I can’t do is to ask you all to continue to believe in something that you can’t or won’t wait for, to happen.

The first 15 years of my ‘Journey of Faith’ was all paid for by me and a few others who believed in the scriptures (there were no salaries or expenses that I didn’t pay out of my own pocket) and I never wanted to take Zion public because I didn’t want to ask others to invest in Zion. My son Mark and I were required in April 2004 by the Government of Israel, to guarantee a loan of up to $2,000,000 to Zion in order to receive our first license in Israel. The primary reason was that if we owned most of the company then I would give most of the money to charities. However, God had a different plan for Zion and that was to take Zion public, which I did (Isaiah 23: 18 NIV).

In conclusion, I’m not trying to impress you about my sacrifices or investment but I am asking you to be patient as we move forward but it’s really not fair for anyone to accuse Zion of not caring about you or your investment because we all do care but we can’t make it happen any faster than God allows. I have asked God for clear direction and I do believe that He gave me (1 Samuel Chapter 30) to read and specifically verses 6-8. So, by faith I am moving ahead in Israel, “…because we will pursue; overtake and without fail recover all” and to me I believe this to mean that we will eventually recover all of our investments…..plus (verses 18-31). When I read (Genesis 12: 2, 3) I just do not see how it’s possible that God will not bless us after we have invested 130 million dollars in Israel.

Sincerely,

John Brown
Chairman & Founder
Zion Oil & Gas, Inc.

The post John Brown’s letter to Shareholders – February 1, 2013 appeared first on Zion Oil and Gas, Inc..

Dear Shareholder and/or Friend of Zion…

This is an update of significant events that have occurred since our last newsletter. Going forward, we will issue updates as company events or developments require. In between updates, you should consult all of our SEC filings, press releases, and website to keep up with company developments.

Operations

Elijah #3 re-entry well (Asher-Menashe License area)

In early November 2012, we re-entered our Elijah #3 well for a second time to acquire new geological information (reservoir pressure and formation fluids data) to better evaluate the hydrocarbon potential of a shallower zone through which Zion penetrated while drilling the well in 2009/2010. We believed that this would help us decide our future course of action for the Elijah #3 well. We also sought third party analyses of the acquired data to add to our understanding of the exploration potential in this area.

On January 9, 2013, a group gathered in our Dallas headquarters to discuss the technical results of the re-entry operations. Included in the meeting were John Brown (CEO), Victor Carrillo (President & COO), Forrest Garb (Board Director and Technical Committee Co-Chair), Bill Avery (General Counsel), Martin Van Brauman (Secretary/Treasurer), Dr. Lee Russell (Geoscience Consultant), Glen Perry (Engineering Consultant), John Vittitow (Engineering Consultant), and John Byars (NuTech Energy Alliance representative). Upon analysis and interpretation of all of the data, it was decided that while there were oil shows and other indications of hydrocarbon potential observed in the shallower portion of the well, we will not pursue additional exploration activities at the Elijah #3 well. However, we are still evaluating the strategic value of continuing to explore other parts of our Asher-Menashe License.

Future Exploration Plans

We are in the process of re-evaluating our exploration strategy going forward. We have now re-evaluated our Asher-Menashe, Joseph, and Jordan Valley License areas, incorporating fairly recently acquired geological and geophysical data. We do not expect to drill a new exploratory well within the first half of 2013 but we hope to drill our next exploratory well towards the end of 2013 or in 2014.

In evaluating our seismic and geologic database in other areas onshore Israel we have identified new areas of potential exploration interest outside our current license areas. One area takes in parts of the Jezreel Valley near the ancient city of Megiddo and another is contiguous with and directly abuts our existing Jordan Valley License area. We also continue to assess, taking into consideration the new licensing guidelines, whether we would apply for new license area(s) in Israel. Under any scenario, we would still need to acquire new seismic data and other geological information before we can identify and recommend the site of our next exploratory well.

After a drill site is identified, we will need to complete the permitting process and finalize arrangements for a suitable drilling rig and experienced crew to drill the well. As we have previously reported, the onshore permitting process in Israel with respect to petroleum exploration is undergoing significant modification, resulting in a lengthier permitting process.

Upcoming Israel Trip

In February, John Brown, Dr. Lee Russell, and I plan to travel to Israel to meet with the Israeli Petroleum Commissioner, Alexander Varshavsky, and other Ministry of Energy and Water Resources officials, regarding a variety of strategically important company issues. Joining us at the meeting will be Dr. Yehezkel “Charlie” Druckman (Board Director and Technical Committee Co-Chair), Glen Perry, and Jeffrey Moskowitz (Israeli outside counsel).

We plan to discuss applying to revise the boundaries of our existing license areas to take in new areas of exploration interest and/or to apply for a brand new license area. We also plan to follow-up on the November 13, 2012 letter (see below) that John Brown sent to Israel’s Energy Minister Uzi Landau and Petroleum Commissioner Alexander Varshavsky raising Zion’s concerns over the government’s proposed financial requirements for existing and new licensees.

Management Additions

We would like to announce the following three recent senior level additions:

• Mr. Kent Siegel joined the Board of Directors effective January 1, 2013. We welcome Kent back to the Zion family where he was previously our Chief Financial Officer and a Director from 2003-2011. Kent has over 28 years of legal and accounting experience and is President and Chief Operating Officer of his own accounting and law firm. Kent graduated with a bachelor’s degree in Accounting from Michigan State University and an Electrical Engineering degree from Lawrence Technological University. He also has a law degree from Wayne State University. He is a member of the American Association of Attorney-Certified Public Accountants.

• Mr. Gene Scammahorn joined the Board of Directors effective October 29, 2012. Gene has over 30 years of business experience including having worked for two “big four” public accounting firms, major oil and gas companies, as well as in banking and consulting. He graduated with a bachelor’s degree in Accounting from the University of Tulsa and is a Texas certified public accountant as well as a Certified Financial Planner.

• Mr. William “Bill” Avery was designated General Counsel effective December 1, 2012. Bill previously worked for Zion on various administrative, financial, and legal matters from 2001-2007 and then joined Zion’s Board of Directors from 2007-2009. Bill has continued to serve Of Counsel to Zion since leaving the Board. He graduated with a bachelor’s degree in Finance and Economics from Southern Methodist University and a law degree from Duke University and is a Texas licensed attorney.

Publicly Traded Warrants

In late October 2012, the Company announced the reduction of the exercise price to $1.75 of both series of its outstanding publicly traded warrants quoted under the symbols “ZNWAW” and “ZNWAZ” until December 31, 2012, their scheduled expiration date. All warrants properly exercised prior to the expiration date were accepted by Zion at the reduced exercise price and one share of registered common stock per warrant will be issued to the exercising warrant holder. The program period has now ended and the final numbers were 429,282 warrants exercised yielding $751,243. As of now, Zion has no outstanding publicly traded warrants.

“And I will bless them that bless thee…”
Genesis 12:2-3

Victor G. Carrillo
President and COO
Zion Oil & Gas

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, the presence or recoverability of hydrocarbons in our license areas, plans to apply for new exploration licenses and the likelihood of being awarded these licenses, the anticipated timeframe for drilling the next exploratory well, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.

Contact Information:
Website: www.zionoil.com
Brittany Russell (dallas@zionoil.com)
Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Tel: 1-214-221-4610 or 1-888-891-9466

The post Zion Oil & Gas Newsletter – 24 January 2013 appeared first on Zion Oil and Gas, Inc..

Zion will extend a three trading day broker protect period for any trades of the ZNWAW and ZNWAZ warrants that occur through the scheduled expiration date. Holders wishing to exercise the ZNWAW and ZNWAZ warrants must deliver funds for the exercise by 5:00 PM Eastern Time on December 31, 2012, the scheduled expiration date, and the warrant holders’ brokers have until 5:00 PM Eastern Time on December 31, 2012 to complete the transaction with Zion’s transfer agent, Registrar and Transfer Company (RTC). The exercise price of the ZNWAW and ZNWAZ warrants is $1.75 per share.

In order to exercise a warrant, the warrant holder may contact his or her broker, who will be able to electronically exercise the warrant through a system operated by The Depository Trust & Clearing Corporation (DTCC). Brokers are encouraged to contact the Company’s transfer agent, RTC by telephoning 1-800-368-5948, in advance of the expiration date to confirm the procedures for exercising warrants and payment of exercise prices in light of the broker protect period.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv. It currently holds three petroleum exploration licenses: the Joseph License (on approximately 83,272 acres) and the Asher-Menashe License (on approximately 78,824 acres) between Netanya, in the south, and Haifa, in the north, and the Jordan Valley License (on approximately 55,845 acres), just south of the Sea of Galilee. The total license area amounts to approximately 218,000 acres.

Contact:

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231

Brittany Russell:

Telephone: 214-221-4610
Email: dallas@zionoil.com

The post Zion Oil Confirms Three Day Broker Protect Period for ZNWAW and ZNWAZ Warrants appeared first on Zion Oil and Gas, Inc..

Dr. Uzi Landau
Minister of Energy and Water Resources

Mr. Alexander Varshavsky
Petroleum Commissioner

Ministry of Energy and Water Resources
234 Yafo Street
P. 0. Box 13106
Jerusalem 91130, Israel

Re: Zion Oil & Gas, Inc.’s Comments to the Ministry’s Performance Guarantee Guidelines

Dear Dr. Landau and Commissioner Varshavsky,

On behalf of Zion’s Board of Directors and our over 25,000 stockholders, many of whom are evangelicals and Christian Zionists who support the company because of their deep love for the State of Israel, Zion Oil & Gas, Inc. (“Zion”) hereby submits its comments to the Ministry’s Proposed Guidelines regarding Licensee Performance Guarantees published on the Ministry’s website on 29 October 2012.

Zion has been engaged in onshore oil and gas exploration in Israel since 2000 when we were first granted the small 28,800 acre Ma’anit License. Our mission, then as now, is to find and produce oil and gas, helping to make Israel politically and economically independent. Today, Zion holds three onshore licenses comprising 218,000 acres. Over the years, we have expended over $85 million dollars directly into the Israeli economy by drilling several deep wells, opening and maintaining an office with over 10 Israeli employees in Caesarea, employing outside legal counsel and multiple third party consultants such as the Geophysical Institute of Israel, Geologic Survey of Israel, Lapidoth, Ecolog, various oil service companies, construction companies, security companies, caterers, hotels, rental car companies, etc.

Requiring a 10% performance guarantee on each license, including drilling obligations, represents a tremendous financial obligation that will discourage, not encourage, additional exploration in Israel, particularly with regard to companies the size of Zion. Believe me when I say that it is much easier to seek and find oil and gas in Texas (with its abundant resources and streamlined regulations) where Zion’s headquarters are than in Israel but we love Israel and its people and that is what has motivated us to remain here for over 12 years.

With this as background, Zion offers our comments and requests:

1. The financing of onshore exploration and drilling activities by exploration companies requires heavy and significant expenditures and financing. The proposed performance guarantee is a tremendous burden to impose on onshore companies, given the fact that all onshore operators and companies are relatively small as compared to those operating offshore. The financial burden and risk can lead to an end of exploration activity for the few onshore companies that are currently active and will certainly discourage any potential new companies from considering entry into Israel.
2. A discount on the performance guarantee percentage should be applied to onshore exploration companies that operate from overseas and finance their operations in Israel. Such companies that inject capital directly into the Israeli economy should be incentivized by providing them with a separate guarantee base scale and some exemptions. Zion recommends the following: “New Onshore Licenses- Prior to granting a new onshore license one must deposit at the offices of the Petroleum Unit -Natural Resources Department a performance guarantee to the amount of -W% 5% of the cost of the work program including the first drilling as per the form attached herein.”
3. Zion recommends that incentives be provided based on a proven record of conducting exploration activities and drilling in Israel. Respectfully, we recommend that for this reason alone, there should be no performance guarantee on existing licenses for companies like Zion who can prove a record of tangible expenditures above a certain threshold in Israel.
4. Beyond this practical reason, there is also a most compelling legal rationale for a complete exemption of performance guarantees for existing licensees. Current licensees, such as Zion, are grandfathered, under the law because the original legal requirements, including budget, work plans and terms at the time the Ministry granted the license absolutely did not require frozen cash as a performance guarantee. Seeking to apply a significant financial performance guarantee retroactively is wholly contrary to the sanctity of contracts and the rule of law that otherwise promotes commercial certainty for company owners seeking to do business in Israel.
5. If, however, the Ministry decides to impose a performance guarantee for existing licensees, onshore companies should not be subject to a more burdensome percentage than our offshore counterparts. Here, both parties should be treated equally. Zion recommends the following: “Existing Onshore and Offshore Licenses- All owners of existing licenses are obligated to deposit at the offices of the Petroleum Unit- Natural Resources Department a performance guarantee to the amount of -W% 5% of the balance of the cost of the future work program regarding onshore licenses and 5% of the balance of the cost of the future work program regarding offshore licenses … “
6. Once a licensee has begun exploration activities, a structured and prorated release of the guarantee should occur. For example, when a license holder completes 20% of the work plan budget (such as for a required seismic acquisition project) the Commissioner should release 20% of the original guarantee.
7. With regard to the request for an updated budget by the end of November, 2012, Zion argues that a thorough updated budget simply cannot be done within a few weeks. We propose: “For the purpose of determining the guarantee amount the operator of existing licenses is to submit an updated budget of the cost of the work program by three months after the guidelines become final no later than November 30, 2012, which updated budget is subject to the examination and approval by the Petroleum Commissioner.”
8. As drafted, the guarantee states that it may be exercised if the license holder “has violated or breached any provision of the law, terms of right or instructions of the Commissioner.” However, the Petroleum Commissioner has stated that if a license holder has violated the license terms, the Petroleum Commissioner is entitled to revoke the license. Revoking a license would in and of itself result in an extensive loss of time and investment and collecting the guarantee would further impose an unfair, unnecessary, and unreasonable penalty on the license holder for not fulfilling the license terms. The government should encourage and promote companies to pursue hydrocarbon exploration in Israel while at the same time protecting the public from damages resulting from the industry. Accordingly, we submit that the guarantee should only be exercised to cover actual damages caused by the license holder. If, however, the Ministry adopts the concept of exercising performance guarantees for violation of license terms, due process requires that advanced warning in writing be given with an adequate opportunity to cure any defect. For example, when Gil is out of country, it has often taken Zion months to complete our seismic acquisition work plan obligation. Therefore, Zion recommends that the Petroleum Commissioner warn the lease holder in writing with regard to the defects and deficiencies for a period of time it would reasonably take to cure the work program defect.

Thank you for the opportunity to voice our significant concerns regarding the negative path that Israel’s oil and gas regulatory direction has recently taken. I trust that this path can be reversed before irreparable harm to the bright future of Israel’s energy independence occurs.

Respectfully submitted,

John Brown, Chairman/CEO
Zion Oil & Gas, Inc.

cc: Zion Board of Directors
Victor G. Carrillo, President/COO
llan Sheena, CFO

To be hand delivered to Prime Minister Netanyahu

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