9 October 2009 – Operations Update # 22

Operations on the Ma’anit-Rehoboth #2 Well

Zion submits periodic reports to Israel’s Petroleum and Mining Commissioner, Dr. Yaakov Mimran. In our most recent report on our Joseph license, submitted this week, we noted that:

The Company drilled the Ma’anit-Rehoboth #2 well to a total depth of 5,460 meters measured depth. The rig was released on October 2, 2009, and the operations are suspended until the Lapidoth Franks 750 rig is available for completion operations. Currently the Lapidoth Franks 750 rig is expected in early December 2009.

Although, there is a possibility that the Lapidoth Franks 750 rig will be available sooner.

So, we look forward to testing the seven zones that warrant completion testing. Four of the zones are in the Triassic seen in the Ma’anit #1 and three in the deeper hole drilled in the Ma’anit Rehoboth #2. Meanwhile, we continue to analyze the results of the logging together with the other scientific data that we collected during the drilling of the well and we continue to update our scientific database.

Preparations at the site of the Elijah #3 Well

On Thursday, October 8, 2009, I visited the site of the Elijah #3 well, together with Zion’s Chief Financial Officer (CFO), Sandra Green. The site is a hive of activity; the equipment is arriving fast and Aladdin Middle East’s (AME’s) 2,000 horsepower rig is being rigged up.

Here are some of the photographs that I took at the site:

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The sign by the road notes (in Hebrew):
Zion Oil & Gas, Inc.
Oil Exploration License #334.
Drilling of Well Elijah #3
Company Registration #560019127

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A forklift truck moves a container into position

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A crane lifts a 30 ton container into position

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Zion’s CFO, Sandra Green in discussion with the site foreman

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The middle of the picture shows the construction of the mast of the drilling rig

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Four of AME’s Turkish rig crew installing some of the 1,000 tons of equipment

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The mast and base of the drilling rig are being assembled

Spudding’ (that is, the start of drilling operations) of the Elijah #3 well is expected on approximately October 20, 2009, and the well operations are expected to last approximately six months.