Zion Oil & Gas Reports Third Quarter Results

CAESAREA, Israel, Nov 14, 2008 (BUSINESS WIRE) -- Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) of Dallas, Texas and Caesarea, Israel, reported today its results for the quarter ended September 30, 2008. The company reported a net loss of $865 thousand or $(0.08) per share for the third quarter of 2008 compared to a net loss of $748 thousand or $(0.07) 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 third quarter results, Zion's Chief Executive Officer, Richard Rinberg, commented: "Zion is moving forward with its exploration and drilling plans. We anticipate that the refurbished 2,000 horsepower drilling rig, with which we plan to drill Zion's planned Ma'anit-Rehoboth #2 well 'directionally' to below 18,000 feet, will be shipped into Israel during January 2009. We have almost finished preparing the drill site and expect to commence drilling shortly after the rig arrives on location. Zion's public offering of $10 units continues, in order to raise further funds for our planned multi-well drilling program."

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.

The Company's financial statement information is summarized below:

(In thousands, except for per share income)
STATEMENT OF OPERATIONS Three months ended
September 30
2008 2007
Revenues - -
Total Expenses 853 748
Net Income (loss) (853) (748)
Earnings (loss) per common share -- basic (0.08) (0.07)
and diluted
Weighted avg. shares issued and outstanding -- 10,125 10,121
basic and diluted

CASH FLOW DATA Nine months ended
September 30
2008 2007
Net cash (used in) operating activities (3,125) (2,970)
Net cash used in investing activities (1,014) (2,653)
Net cash provided by financing activities - 8,218

BALANCE SHEET DATA September 30, 2008 December 31, 2007
Current Assets 1,392 4,716
Total Assets 5,114 7,421
Total Liabilities 2,110 1,633
Total Shareholders Equity 3,004 5,788

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's operations and planned operations and an ability to raise additional capital, 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 or its underwriter will arrange to send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). Direct links to the SEC location, or to the documents in PDF, may be found on the home page of Zion Oil & Gas, Inc., at www.zionoil.com

SOURCE: Zion Oil & Gas, Inc.
Zion Oil & Gas, Inc.
Brittany Russell, 214-221-4610
brittany@zionoil.com

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