Zion Oil & Gas Reports First Quarter Results

Dallas, Texas and Caesarea, Israel – May 15, 2009: Zion Oil & Gas, Inc. (NYSE Amex: ZN) reported today its results for the quarter ended March 31, 2009. The company reported a net loss of $916,000 or $(0.08) per share for the first quarter of 2009 compared to a net loss of $1,039,000 or $(0.10) per share for the same quarter a year earlier. The company has no revenues as it is still an exploration stage company.

On release of the first quarter results, Zion’s Chief Executive Officer, Richard Rinberg, commented: “Zion is steadily progressing in its exploration and drilling program and our staff in Caesarea are hard at work, as drilling operations continue on our Ma’anit-Rehoboth #2 well. The drilling rig crews are making good progress and are ‘on schedule’. Meanwhile, our Dallas team is working on our current Rights Offering. We hope and believe that, after years of hard work and planning, our shareholders will see the first fruits of success in the Joseph Project.”

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres. Zion has applied for a further permit area (tentatively named by Zion the Issachar-Zebulun Permit Area) and the application, if granted, will increase Zion’s total license area to over 325,000 acres.

The Company’s financial statement information is summarized below:

(In thousands, except for per share income)

STATEMENT OF OPERATIONS

Three months ended March 31
2009
2008
Revenues

-

Total Expenses

916

1,039

Net income (loss)

(916)

(1,039)

Earnings (loss) per common share
– basic and diluted

(.08)

(0.10)

Weighted average shares issued and outstanding
– basic and diluted

10,826

10,121

CASH FLOW DATA

Three months ended March 31

2009

2008

Net cash (used in) operating activities

(1,017)

(765)

Net cash (used in) investing activities

(585)

(605)

Net cash provided by financing activities

2,301

BALANCE SHEET DATA

March 31, 2009

December 31, 2008

Current Assets

3,355

2,289

Total Assets

9,323

7,676

Total Liabilities

2,100

2,121

Total Shareholders Equity

7,223

5,555

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s operations and rights offering, 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.

NOTICE

Zion Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).

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

Contact:

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Ashley Chatman – tel: 214-221-4610
Email: moc.l1328830283ionoi1328830283z@sal1328830283lad1328830283