Zion Oil & Gas Drilling Operations Update and Unit Program to End Soon

Zion’s Operations Reach 3,280 Feet and Company Will Not Extend Current Unit Offering

DALLAS and CAESAREA, Israel, July 5, 2017 — Zion Oil & Gas, Inc. (NASDAQ: ZN) continues active drilling operations at its Megiddo-Jezreel #1 well in Israel. As of today, we have reached a depth of ~3,280 feet (~1,000 meters) toward a proposed total depth of up to ~15,000 ft.

Zion’s CEO, Victor Carrillo, added, “Since our last update on June 19th, we continue to be quite pleased with the operational progress of the drilling. We successfully ran a suite of electric logs from surface to ~1,900 ft., successfully ran and cemented our surface casing with 18 5/8 inch casing, and continue drilling deeper. I would like to emphasize to our investors that as opposed to most other drilling operations around the world, in Israel, we do not drill during Shabbat (Friday sunset to Saturday Sunset) out of respect for local laws and religious traditions. We recognize that this may extend the overall time it takes to drill our well, but we will continue to be good stewards of Israel’s land and customs in acknowledgment that we are their guests.”

Zion’s forward looking plans call for obtaining sidewall cores (SWCs) from upcoming zones of interest and drilling ahead to our next casing point.

Drilling crew at work on Zion’s Megiddo-Jezreel #1 well in Israel.

$250 Unit Program Ends on July 12, 2017 and Will Not Be Extended

Zion Oil & Gas will not be extending the current $250 Unit Program under its Dividend Reinvestment and Common Stock Purchase Plan (DSPP) beyond next Wednesday, July 12, 2017.

Interested participants may participate in the $250 Unit program through July 12, 2017 only. To learn more about this program, visit Zion’s information on the Direct Stock Purchase Plan (DSPP) – www.zionoil.com/dspp

Zion Oil & Gas explores for oil and gas onshore in Israel and its operations are focused on the Megiddo-Jezreel License (approximately 99,000 acres) south and west of the Sea of Galilee.

Forward Looking Statements

This press release contains statements that may be deemed to be “forward-looking statements” under federal securities laws. Any forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors and other risks and uncertainties discussed under the heading “RISK FACTORS” at page 22 of the Prospectus Supplement and in the Company’s other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Zion Oil & Gas, Inc. has filed with the SEC a registration statement (including a prospectus) for the unit program under the DSPP to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Zion Oil & Gas, Inc.  has filed with the SEC for more complete information about Zion and this offering. That prospectus and other documents the Company has filed with the SEC may be obtained at no charge (free) by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas, Inc. will send you the prospectus upon request by calling toll free 888-891-9466. Direct links to the SEC location, or to the documents in PDF, may be found on Zion’s home page at www.zionoil.com.