Update: Elijah #3 Re-Entry Has Begun

On January 5, 2014, Zion Oil & Gas Inc. initiated reentry operations at the Elijah #3 well in Israel.

Our key zone of interest is at a depth of approximately 2,231 to 2,253 meters (7,320-7,390 feet).

Under Zion’s Asher-Menashe License, the Company is required to perform a perforation and stimulation operation at the Elijah #3 well and conduct a production test. We plan to perforate the zone of interest, fluid stimulate the zone, and perform a drill stem test.

A drill stem test is a procedure for isolating and testing the pressure, permeability and productive capacity of a geological formation within a well. The test is a key method of obtaining information on the formation fluid and establishing whether a well has found a commercial hydrocarbon reservoir.

If the test is positive, the Company will contact the Petroleum Commissioner’s office to discuss future development plans. If the test is negative, the Company plans to plug the well immediately.