Zion’s President and Chief Operating Officer: Victor G. Carrillo

Zion’s Exploration Department

Left to Right: Victor G. Carrillo, Liat Roter, Dr. Eliezer Kashai, Aaron Kahn

During the past month, Zion’s President and Chief Operating Officer, Victor G. Carrillo visited Israel. He held various meetings with our Israel-based exploration team, discussing our latest geological and geophysical findings and our future plans. Victor spent time out in the field on our license areas and also meeting with our Israel-based Board members.

Zion’s Petroleum Exploration License Areas

In our Jordan Valley License area, the permitting for the 2-D seismic survey (using a dynamite source) is progressing and we currently expect that the survey will be performed by the Geophysical Institute of Israel (GII) in March 2012. Of course these dates are estimates and are subject to change based on GII’s schedule of commitments.

That seismic should help us to further refine our plans to drill in the Jordan Valley License area.

With regard to our planned VSP (vertical seismic profile) survey in our Asher-Menashe License area, which will be acquired by a third party contractor with assistance by GII, we still need to secure appropriate equipment in line with our planned schedule. I am optimistic that in my next update to you, I will have some positive news regarding this.

With regard to our Joseph License area, our scientific work continues. A summary report (of all work to date) and a quarterly report (for the quarter ended December 31, 2011) were due to Israel’s Petroleum Commissioner by January 31, 2012. These were submitted in a timely manner and we look forward to discussing our findings with the Petroleum Commissioner.

In January 2012, to his great credit, geologist Aaron Kahn was accepted as a member of the American Association of Petroleum Geologists (AAPG). He joins Victor Carrillo, Dr. Eliezer Kashai and Zion Board member Dr. Yehezkel Druckman, as they are all AAPG members.

Recently, there has been somewhat of a ‘shake-up’ in Israel’s government departments dealing with natural resources. In mid-2011, Dr. Gardosh was appointed Israel’s Petroleum Commissioner on an interim basis, but there is a six-month restriction on any interim appointments. As of January 1, 2012, Mr. Alexander Varshavsky is the new (interim) Commissioner of Petroleum Affairs and the Ministry of Infrastructure has been renamed the Ministry of Energy and Water Resources.

The map above shows Zion’s current petroleum exploration licenses:

• the Joseph License (on approximately 83,000 acres)
• the Asher-Menashe License (on approximately 79,000 acres)
• the Jordan Valley License (on approximately 56,000 acres)

Zion’s total license area amounts to approximately 218,000 acres.

Zion’s Applications for additional Petroleum Exploration Areas

In 2011, we submitted applications to the Israeli Petroleum Commissioner for three further exploration areas:

• the Dead Sea License Application
• the Asher-Joseph Permit Application
• the Zebulun Permit Application

If all of our applications are granted, the total petroleum exploration area under Zion’s control would be approximately 530,000 acres.

I have recently put in a request to meet with the new Petroleum Commissioner, in order to wish him every success and also to request that our applications be considered, as soon as possible.

Early this month, Zion’s Founder and Chairman, John Brown, was on a trip led by Dr. David Jeremiah (who has shown much interest in Zion’s work) and this past week, John attended the 26th Annual Pastor’s Conference in Jacksonville, Florida. Many pastors showed great interest in Zion’s work to date as well as our future plans.

John Brown and Richard Rinberg being interviewed on American Family Radio

at the 2010 NRB Convention

In February 2012, John Brown and I plan to attend the National Religious Broadcasters Convention in Nashville, Tennessee. Last year, the interviews that John and I gave were warmly received and resulted in much interest in Zion’s work.

“In your good pleasure, make Zion prosper…”

Psalm 51:18

Thank you for your support of Zion

Shalom from Israel

Richard Rinberg

CEO of Zion Oil & Gas, Inc.

www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to perform seismic surveys, the timing of these surveys, the impact of these surveys on identifying drilling prospects, the grant of applied-for exploration license and permits, the sufficiency of cash reserves, 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:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (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 entrance of thy words giveth light; it giveth understanding unto the simple.”
(Psalm 119: 130)

The Promises:

“The Lord, He is the one who goes before you, He will be with you, He will not leave you nor forsake you.”(Deut. 31: 8) “O Lord, I know the way of Man is not in himself; it is not in Man who walks to direct his own steps” (Jer. 10: 23) and “the steps of a good Man are ordered by the Lord, and he delights in his way. Though he falls, he shall not be utterly cast down; for the Lord upholds him with his hand.” (Psalm 37: 23-24) For I am continually with you; you hold me by my right hand. You will guide me with your counsel, and afterward receive me to glory.” (Psalm 73: 23-24)

The Answer:

Our testing is sometimes very difficult, but the result is often a deeper Faith and Trust in G-d. But I do know that all those who endure the testing of their Faith will eventually experience G-d’s great rewards in the end. So, “Commit thy way unto the Lord; trust also in Him; and He shall bring it to pass.” (Psalm 37: 5) and “Your beginnings will seem humble, so prosperous will your future be.” (Job 8: 7)

Shalom,
John Brown

As 2011 draws to a close, I have been reflecting on the past year and the progress that Zion has made during the last twelve months.

When I first invested in Zion Oil & Gas, I thought that I was joining a short-distance race – a sprint. I now realize that the race was long-distance – a marathon… and to succeed in a marathon, you need both strong faith and firm resolve and determination.

After the events of the past year, I believe that we are well along the path and I hope and pray that we will soon be turning into the final straight. With G-d’s help, I believe that we will soon see success with our oil & gas exploration efforts.

Here are some of the events of 2011:

(i) In April 2011, we were awarded a new petroleum exploration license, the Jordan Valley License (to the east of Zion’s Joseph License area and Zion’s Asher-Menashe License area and to the south of the Sea of Galilee. It traverses south along the western Jordan River Valley).

(ii) In June 2011, we reached our target depth of approximately 19,357 feet (5,900 meters) in drilling our Ma’anit-Joseph #3 well into the Permian geologic layer in Northern Israel (in the Joseph License area).

(iii) In June 2011, we submitted an application to the Israeli Petroleum Commissioner’s Office, requesting the grant of a new petroleum exploration permit area adjacent to Zion’s Joseph License area. Zion named the new permit application the Asher-Joseph Permit Application.

(iv) In July 2011, we joined the broad-market Russell 3000® Index, the U.S. small-cap Russell 2000® Index, the Russell Microcap® Index and the Russell Global® Index after Russell Investments (“Russell”) reconstituted its comprehensive set of U.S. and global equity indexes on June 24, 2011.

(v) In July 2011, we were awarded a one-year extension on our Asher-Menashe petroleum exploration license in Northern Israel.

(vi) In July 2011, we completed a rights offering and received subscriptions for almost 80% of the offered rights.

(vii) In October 2011, we signed an agreement with the Geophysical Institute of Israel for the acquisition of approximately 15 kilometers of 2D seismic lines located within Zion’s Jordan Valley License area.

(viii) In October 2011, we were awarded a one-year extension on our Joseph petroleum exploration license in Northern Israel.

(ix) In November 2011, we signed an agreement with the Geophysical Institute of Israel for the acquisition of approximately 11 kilometers of 2-D seismic lines in Zion’s Asher-Menashe License area. The agreement also allows us, should we so decide, to acquire a Vertical Seismic Profile (VSP) in place of the 2-D seismic survey.

(x) In December 2011, we extended the exercise period of our outstanding publicly traded warrants under the symbol ZNWAW to December 31, 2012 (from January 31, 2012, the expiry date provided by the original terms of the Warrants). If you hold these warrants, please read the Press Release by clicking here.

Zion currently holds three petroleum exploration licenses:

• the Joseph License (on approximately 83,000 acres),
• the Asher-Menashe License (on approximately 79,000 acres),
• the Jordan Valley License (on approximately 56,000 acres).

Our total license area amounts to approximately 218,000 acres.

Zion has also submitted applications to the Israeli Petroleum Commissioner for three further exploration areas:

• the Dead Sea License Application
• the Asher-Joseph Permit Application
• the Zebulun Permit Application.

If all of our applications are granted, the total petroleum exploration area under Zion’s control would be approximately 530,000 acres.

I continue to be optimistic about the possibility of recovering hydrocarbons on our license and permit areas, onshore Israel, especially due to the U.S. Geological Survey report, published in April 2010, containing their assessment that there may be 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of recoverable gas in the Levant Basin, as all of Zion’s exploration rights fall within the area of the Levant Basin.

We are working towards drilling our next exploratory well in the first half of 2012.

I want to thank you for your support of Zion and wish you and your loved ones much happiness and success in 2012. I hope that the year ahead will be the one that brings Zion Oil & Gas the success that we have all been working towards.

“In your good pleasure, make Zion prosper…”
Psalm 51:18

Thank you for your support of Zion

Shalom from Israel

Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to commence seismic surveys, that the seismic acquisitions are expected to begin in 2012, that the results will improve the quality of existing data and increase the chances of success of future exploratory wells, the sufficiency of cash reserves, 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:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (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

Richard Rinberg, CEO of Zion, stated, “This extension of the exercise period will provide our ZNWAW warrant holders additional time to exercise their warrants and increase their ownership participation in the Company. We hope that a substantial number of these warrants will be exercised.”

WHILE ZION’S BOARD OF DIRECTORS HAS APPROVED THE EXTENSION OF THE EXPIRY DATE OF THE ZNWAW WARRANTS, NEITHER ZION NOR ANY OF ITS DIRECTORS, OFFICERS OR EMPLOYEES MAKES ANY RECOMMENDATION AS TO WHETHER TO EXERCISE THESE WARRANTS. WARRANT HOLDERS MUST MAKE THEIR OWN DECISIONS AS TO WHETHER TO EXERCISE A WARRANT.

The information above does not constitute an offer to buy or exchange securities or constitute the solicitation of an offer to sell or exchange any securities in Zion.

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 83,000 acres) and the Asher-Menashe License (on approximately 79,000 acres) between Netanya, in the south, and Haifa, in the north and the Jordan Valley License (on approximately 56,000 acres), just south of the Sea of Galilee. The total license area amounts to approximately 218,000 acres.
In 2011, Zion Oil & Gas submitted applications to the Israeli Petroleum Commissioner for three further exploration areas: the Dead Sea License Application (covering an area of approximately 75,000 acres), the Asher-Joseph Permit Application (covering an area of approximately 80,000 acres) and the Zebulun Permit Application (covering an area of approximately 157,000 acres). If all of our applications are granted, the total petroleum exploration area under Zion’s control would be approximately 530,000 acres.

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding the effect of the extension of the exercise period of the “ZNWAW” warrants and Zion’s operations, are forward-looking statements as defined in the “Safe Harbor” provision 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.
Zion’s homepage may be found at: www.zionoil.com
Contact:
Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231

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

You can read below Zion’s activities during November 2011. Like the proverbial white swan, we appeared to be gliding serenely across the lake… however, beneath the surface we were paddling furiously.

I believe that in a few months time, you will begin to see the fruits of our current work.

As you know, we are exploring for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv.

We currently hold three petroleum exploration licenses:

(i) the Joseph License (on approximately 83,000 acres),

(ii) the Asher-Menashe License (on approximately 79,000 acres),

(iii) the Jordan Valley License (on approximately 56,000 acres).

Our total license area amounts to approximately 218,000 acres.

Earlier this year, Zion submitted applications to the Israeli Petroleum Commissioner for three further exploration areas: the Dead Sea License Application, the Asher-Joseph Permit Application and the Zebulun Permit Application. If all of our applications are granted, the total petroleum exploration area under Zion’s control would be approximately 530,000 acres.

This week, we signed an agreement with the Geophysical Institute of Israel (GII) relating to the acquisition (using Vibroseis equipment) of approximately 11 kilometers of 2-D seismic lines located within Zion’s Asher-Menashe License area. The acquisition is expected to begin in April 2012, as GII’s Vibroseis equipment is currently in Ethiopia. The seismic contract also allows us, should we so decide, to acquire a Vertical Seismic Profile (VSP) in place of the 2-D seismic survey. A VSP involves lowering specialized geophysical equipment into a wellbore (perhaps the Elijah #3 well) while recording a seismic wave source (such as from a Vibroseis truck) along the surface. We are currently evaluating whether we may be able to obtain better seismic data at depth, if we utilize the VSP option.

As previously reported, in October 2011, we signed an agreement with GII relating to the acquisition (using dynamite) of approximately 15 kilometers of 2-D seismic lines located within Zion’s Jordan Valley License area. The acquisition is expected to begin in the first quarter of 2012.

In mid-November 2011, I spent a week at Zion’s Dallas, Texas office, in order to hold meetings with Zion’s staff, service contractors and proposed drilling contractors, as we currently plan to start drilling our next well in the first half of 2012 and there is a lot of preparatory work (for example, signing a drilling contract and obtaining all the required drilling permits) in order to meet that schedule.

Rabbi Schlesinger teaching a Bible lesson to Zion’s Dallas staff

Fixing the Mezuzah to Zion’s new Geoscience/Engineering Office

L to R: John Brown, Martin van Brauman, Rabbi Hanan Schlesinger

During my visit to Dallas, Rabbi Hanan Schlesinger (of the Jewish Studies Initiative of North Texas) visited our offices. As you can see in the photographs, we gathered for a brief ceremony, during which Rabbi Schlesinger explained the significance of placing a Mezuzah on a doorpost. A Mezuzah is a small receptacle, containing a parchment with verses from the Bible (Deuteronomy 6:4-9 and 11:13-21), that is fastened to a doorpost. It is a constant reminder of G-d’s presence. After his teaching, Rabbi Schlesinger pronounced the traditional blessing and fixed the Mezuzah to the doorways of our expanded Dallas office space.

In Dallas, I also met with an audit partner from Malone Bailey, Zion’s new external auditor, to discuss their forthcoming audit of Zion’s 2011 financials. As Zion’s principal executive office is located in Dallas, Texas and our previous auditors Somekh Chaikin (a member of KPMG International) were not registered in Texas, we were required by the Texas State Board of Public Accountancy to engage a new independent registered public accounting firm. After much careful consideration, we engaged Malone Bailey LLP and look forward to working with them.

The various steps forward that we have been making will enable everyone to see Zion make real progress in 2012. We plan to start drilling in the first half of 2012 – and are hopeful that the discovery that has so far eluded us will come in 2012.

I was recently asked by a stockholder how the present ‘uncertainties’ in Israel, Europe and the USA are affecting Zion Oil & Gas. Here is the answer that I gave:

“On my recent trip to New York to present at a Wall Street investors conference, I walked past the New York Public Library and noticed the massive pair of marble lions in front of the Beaux-Arts building at Fifth Avenue and 42nd Street. A local guide mentioned that the lions had nicknames that have changed over the years. Originally, they were called Leo Astor and Leo Lenox, after The New York Public Library founders John Jacob Astor and James Lenox. But, during the 1930s, Mayor Fiorello LaGuardia renamed them Patience and Fortitude, for the qualities he felt New Yorkers would need to survive the economic depression.

Our staff and stockholders have demonstrated that they have both patience and fortitude. We are making steady progress and look forward to start drilling our next well in the first half of 2012.”

“In your good pleasure, make Zion prosper…”
Psalm 51:18

Thank you for your support of Zion

Shalom from Israel

Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to commence seismic surveys, that the seismic acquisitions are expected to begin in 2012, that the results will improve the quality of existing data and increase the chances of success of future exploratory wells, the sufficiency of cash reserves, 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:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (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

October has been a very active month at Zion Oil & Gas.

On October 6, 2011, we signed an agreement with the Geophysical Institute of Israel (GII) for the acquisition of approximately 15 kilometers (9 miles) of seismic data in our recently acquired Jordan Valley License area. The seismic survey is scheduled to commence in late 2011 or early in 2012.

On October 11, 2011, we renewed the lease on our office premises in Dallas, Texas and rented some additional adjacent space in the building. To reduce costs, we are closing Zion’s office in State College, Pennsylvania; we will now have space in Dallas for both a geology and engineering department.

After a long period of negotiation with various oil & gas companies, on October 14, 2011, Zion signed a non-binding Memorandum of Understanding (MOU) with a United States based company affiliated with an oil & gas exploration company with significant international operations. We plan that they will provide Zion with an onshore drilling rig with deep drilling capacity and certain other oilfield services for a minimum of three years and for at least three new wells that we plan to drill on our license areas. However, we will need to prepare, negotiate and execute legally binding documentation before we can begin our formal relationship.

We are excited and encouraged that, on October 17, 2011 (petroleum geologist, geophysicist and, for eight years, statewide-elected commissioner of the Railroad Commission of Texas – the state’s chief oil and gas regulatory agency), Victor G. Carrillo, was appointed as Zion’s new President and Chief Operating Officer. Victor was appointed following Bill Ottaviani’s departure from Zion, by mutual agreement, on October 14, 2011. Victor has been serving as Zion’s Executive Vice President since January 2011 and as a director since September 2010. He will continue to serve as a member of Zion’s Board of Directors.

Left to Right: Aaron Kahn (Geologist), Liat Roter (Geophysicist)

On October 23, 2011, we were pleased to welcome an additional staff member to our Israel exploration department: Ms. Liat Roter, a geophysicist who has just completed the work for her Masters (M.Sc.) in geosciences at the University of Haifa. We are steadily improving our exploration department, as that is Zion’s ‘engine for growth’ as we pursue our exploration plans.

Left to Right: Senator Mary Landrieu, Richard Rinberg (Zion’s CEO), Ilan Sheena (Zion’s CFO)

Also on October 23, 2011, a US delegation – the Louisiana Oil & Gas Trade Mission, arrived in Israel. The delegation was led by (The Honorable) Mary Landrieu, Senator for the State of Louisiana. Senator Landrieu is on her third visit to Israel and commented: “… we really value our relationship with Israel and want to see it strengthened”.

Louisiana has some of the world’s leading companies that deal in developing oil and gas ventures and the delegation comprised a number of oil & gas service providers who are eager to help Israel’s fledgling oil and gas industry to grow stronger. On October 24, we attended a seminar on the topic of ‘Oil & Gas in Israel’ that was arranged under the auspices of the Southwest Louisiana Economic Development Alliance and the US Department of Commerce.

We weren’t complete strangers to Louisiana as, for a number of years, Zion Board member (and Petroleum Commissioner for the State of Israel from 1995, until his retirement in 2004), Dr.Yehezekel (Charlie) Druckman, was affiliated with the Louisiana State University at Baton Rouge as a Research Associate in Geology. That evening, US Ambassador, Daniel B. Shapiro, gave a reception at his home in Herzliya.

It is clear that there is a growing interest in Israel’s energy industry. That can only be good for Zion, as competition by service providers will inevitably drive down costs for the provision of services.

Finally, on October 26, 2011, we received from the Petroleum Commissioner of Israel, as requested, an extension on our Joseph License to October 10, 2012, so we can continue with our petroleum exploration plans on that license area.

Taken together, the various steps we have made in October 2011 position us well for the coming months. We are looking forward to drilling our next well – we plan to start drilling in the first half of 2012 – and are hopeful that the discovery that has so far eluded us will come in 2012.

In Latin: “Fortuna erudites favet”, in English: “Fortune favors the prepared” and in the Psalms:

“In your good pleasure, make Zion prosper…”
Psalm 51:18

Thank you for your support of Zion

Shalom from Israel

Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to commence a 2D seismic survey, that seismic acquisition is expected to begin in 2011 or 2012, that the results will improve the quality of existing data and increase the chances of success of planned exploratory wells, the sufficiency of cash reserves, 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:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (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

Zion’s Joseph license covers an area of approximately 83,272 acres on the Israeli coastal plain south of the Asher-Menashe License between Caesarea in the north and Netanya in the south.

The Joseph License had an initial three-year term, which commenced on October 11, 2007 and was extended by one year, until October 11, 2011. On October 26, 2011, Zion received notification from the Israeli Petroleum Commissioner extending the term of the Joseph License by a further year, until October 10, 2012. The Joseph License may be extended for additional one-year periods up to October 10, 2014.

The Joseph License extension carries a commitment to acquire additional seismic data and to sign a drilling contract to drill a new well in the License Area (or re-enter an existing well) no later than October 1, 2012.

Richard Rinberg, Zion’s Chief Executive Officer, commented that, “Earlier this year, we submitted applications to the Israeli Petroleum Commissioner for three further exploration areas: the Dead Sea License Application (covering an area of approximately 74,925 acres), the Asher-Joseph Permit Application (covering an area of approximately 80,000 acres) and the Zebulun Permit Application (covering an area of approximately 157,480 acres). If all of our applications are granted, the total petroleum exploration area under Zion’s control would be approximately 530,346 acres.

We remain excited about the possibility of recovering hydrocarbons on our license and permit areas, onshore Israel, especially due to the U.S. Geological Survey report, published in April 2010, containing their assessment that there may be 1.7 billion barrels of recoverable undiscovered oil and 122 trillion cubic feet of recoverable gas in the Levant Basin, as all of Zion’s exploration rights fall within the area of the Levant Basin.”

Zion’s common stock trades on the NASDAQ Global Market under the symbol “ZN” and Zion’s warrants trade under the symbol “ZNWAW, ZNWAZ and ZNWAL”.

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 217,941 acres.

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, sufficiency of cash reserves, ability to raise additional capital and the effects of non-procurement of pending license and permit applications and 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.

Zion’s homepage may be found at: www.zionoil.com

CONTACT:

Zion Oil & Gas, Inc.

Mike Williams,

tel: (1) 214-221-4610

dallas@zionoil.com

Mr. Carrillo is a petroleum geologist and geophysicist, attorney, former city councilman, former county judge and former statewide elected official in Texas. For almost eight years, ending in January 2011, Mr. Carrillo served as a commissioner of the Railroad Commission of Texas (the State of Texas Board with regulatory jurisdiction over oil and gas exploration and production) having served as chairman of the three-member statewide elected board twice. Mr. Carrillo holds a law degree from the University of Houston Law Center, a Master of Science degree in geology from Baylor University, and a Bachelor of Science degree in geology from Hardin-Simmons University. Mr. Carrillo also received an honorary doctorate degree from Hardin-Simmons University in May 2006. Mr. Carrillo’s background in petroleum geology and geophysics and regulatory experience as Chairman of the Railroad Commission of Texas furnishes to our board access to a greater understanding of both petroleum science and regulatory issues. Mr. Carrillo currently also serves as a director of Magnum Hunter Resources Corporation; an oil and gas company engaged in the acquisition, development and production of unconventional oil and gas resource plays in the United States and Canada. He also serves on the advisory board of the Maguire Energy Institute at Southern Methodist University in Dallas, Texas.

Zion’s Chief Executive Officer, Richard Rinberg, said today that, “I want to thank Bill Ottaviani for his contribution to Zion and wish him well in his future endeavours.

I am very pleased to announce Mr. Carrillo’s appointment as our President and Chief Operating Officer. Victor Carrillo has a wealth of experience in the petroleum industry and is an experienced petroleum industry professional. His skills as a petroleum geologist and geophysicist will serve our Company well as we strive to identify drilling prospect opportunities in our license areas, confirm our next drilling locations and implement our multi-well strategy, as we continue our pursuit to recover hydrocarbons in Israel.”

Zion’s common stock trades on the NASDAQ Global Market under the symbol “ZN” and Zion’s warrants trade under the symbols: “ZNWAW”, “ZNWAZ” and “ZNWAL”.

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, drilling efforts and locations, the presence or recoverability of hydrocarbons, timing and potential results thereof and plans contingent thereon and sufficiency of cash reserves 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.
Zion’s homepage may be found at: www.zionoil.com

Contact:
Zion Oil & Gas, Inc.
Mike Williams tel: 214-221-4610
dallas@zionoil.com

Dear Zion’s Family and Friends,

Why do we so often judge our lives by what seems at the moment to be our failures instead of our successes?

And why do we remember so vividly the prayers that don’t seem to be answered, while forgetting or taking for granted all the prayers that were answered?

I am reminded that we need to keep on praying (I Thessalonians 5:17), no matter how many of our prayers don’t seem to be heard or answered. G-d always knows what’s best for us no matter what we think we need or what we ask him for, and what seems to be our mistakes, or what we call failures, sometimes is actually G-d opening the door for something a lot more important or better for us later on. (Proverb 16:9) (Proverb 19:21)
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I am reminded that we need to keep on praying (I Thessalonians 5:17), no matter how many of our prayers don’t seem to be heard or answered. G-d always knows what’s best for us no matter what we think we need or what we ask him for, and what seems to be our mistakes, or what we call failures,sometimes is actually G-d opening the door for something a lot more important or better for us later on. (Proverb 16:9) (Proverb 19:21)

Our continuing pray for the Jewish New Year 5772 is that G-d will bless the Jewish people and Israel with peace and continued prosperity; and that G-d will continue to bring the Jewish people back to the land of Israel as He promised. (Psalm 14:7)

Shalom from Dallas,

John Brown