Caesarea, Israel – March 31, 2009 – Zion Oil & Gas, Inc. (NYSE Amex: ZN), of Dallas, Texas and Caesarea, Israel, filed on March 31, 2009, its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The Company reported a net loss of $(4,018) thousand or $(0.39) per share for the 2008 year compared to a net loss of $(13,047) thousand or $(1.34) per share for the prior year. The Company had no revenues, as it is still an exploration stage company. As in prior years, the audit opinion from the Company’s independent registered accounting firm, Somekh Chaikin (a Member of KPMG International), included in the Company’s Annual Report on Form 10-K a ‘going concern’ qualification.

Upon release of the 2008 annual results, Zion’s Chief Executive Officer, Richard J. Rinberg, commented: “During 2008, Zion’s staff were extremely busy and successful in advancing Zion’s business. We completed a comprehensive geophysical survey on our license area and announced the results of our seismic acquisition program. We signed a drilling contract with drilling contractor Aladdin Middle East Ltd to drill Zion’s wells in Israel, purchased drill pipe and prepared for the drilling of our Ma’anit-Rehoboth #2 well in 2009. Zion also held a successful follow-on offering. In addition, the two charitable foundations that Zion established held their initial meetings of founding members.”

For additional information regarding the 2008 results, please refer to the Company’s latest Form 10-K which is available on the SEC’s website www.sec.gov and at Zion’s website www.zionoil.com.

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 on the south and Haifa on 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 400,000 acres.

The Company’s financial statement information is summarized below:

(US$ In thousands, except for per share income)

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion’s operations and planned operations, including its planned drilling program, its ability to raise additional capital and risks related to the economic downturn 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 home page may be found at: www.zionoil.com

Contact:

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

Brittany Russell, tel: 214-221-4610
Email: