~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Shareholder and/or Friend of Zion.

Zion's President and Chief Operating Officer: Victor G. Carrillo

Zion's Exploration Department
Left to Right: Victor G. Carrillo, Liat Roter, Dr. Eliezer Kashai, Aaron Kahn

During the past month, Zion's President and Chief Operating Officer, Victor G. Carrillo visited Israel. He held various meetings with our Israel-based exploration team, discussing our latest geological and geophysical findings and our future plans. Victor spent time out in the field on our license areas
and also meeting with our Israel-based Board members.

Zion's Petroleum Exploration License Areas

In our Jordan Valley License area, the permitting for the 2-D seismic survey (using a dynamite source) is progressing and we currently expect
that the survey will be performed by the Geophysical Institute of Israel (GII) in March 2012. Of course these dates are estimates and are subject to
change based on GII's schedule of commitments.

That seismic should help us to further refine our plans to drill in the Jordan Valley License area.

With regard to our planned VSP (vertical seismic profile) survey in our Asher-Menashe License area, which will be acquired by a third party
contractor with assistance by GII, we still need to secure appropriate equipment in line with our planned schedule. I am optimistic that in my next
update to you, I will have some positive news regarding this.

With regard to our Joseph License area, our scientific work continues. A summary report (of all work to date) and a quarterly report (for the
quarter ended December 31, 2011) were due to Israel's Petroleum Commissioner by January 31, 2012. These were submitted in a timely manner
and we look forward to discussing our findings with the Petroleum Commissioner.

In January 2012, to his great credit, geologist Aaron Kahn was accepted as a member of the American Association of Petroleum Geologists
(AAPG). He joins Victor Carrillo, Dr. Eliezer Kashai and Zion Board member Dr. Yehezkel Druckman, as they are all AAPG members.

Recently, there has been somewhat of a 'shake-up' in Israel's government departments dealing with natural resources. In mid-2011, Dr. Gardosh
was appointed Israel's Petroleum Commissioner on an interim basis, but there is a six-month restriction on any interim appointments. As of
January 1, 2012, Mr. Alexander Varshavsky is the new (interim) Commissioner of Petroleum Affairs and the Ministry of Infrastructure
has been renamed the Ministry of Energy and Water Resources.

The map above shows Zion's current petroleum exploration licenses:

• the Joseph License (on approximately 83,000 acres)
• the Asher-Menashe License (on approximately 79,000 acres)
• the Jordan Valley License (on approximately 56,000 acres)

Zion's total license area amounts to approximately 218,000 acres.

Zion's Applications for additional Petroleum Exploration Areas

In 2011, we submitted applications to the Israeli Petroleum Commissioner for three further exploration areas:

• the Dead Sea License Application
• the Asher-Joseph Permit Application
• the Zebulun Permit Application

If all of our applications are granted, the total petroleum exploration area under Zion's control would be approximately 530,000 acres.

I have recently put in a request to meet with the new Petroleum Commissioner, in order to wish him every success and also to request
that our applications be considered, as soon as possible.

Early this month, Zion's Founder and Chairman, John Brown, was on a trip led by Dr. David Jeremiah (who has shown much interest in Zion's work)
and this past week, John attended the 26th Annual Pastor's Conference in Jacksonville, Florida. Many pastors showed great interest in Zion's work
to date as well as our future plans.

John Brown and Richard Rinberg being interviewed on American Family Radio
at the 2010 NRB Convention

In February 2012, John Brown and I plan to attend the National Religious Broadcasters Convention in Nashville, Tennessee.
Last year, the interviews that John and I gave were warmly received and resulted in much interest in Zion's work.

"In your good pleasure, make Zion prosper..."
Psalm 51:18

Thank you for your support of Zion

Shalom from Israel

Richard Rinberg

CEO of Zion Oil & Gas, Inc.

www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to perform seismic surveys, the timing of these surveys, the impact of these surveys on identifying drilling prospects, the grant of applied-for exploration license and permits, the sufficiency of cash reserves, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.

 
Contact Information:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (dallas@zionoil.com)

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Tel: 1-214-221-4610 or 1-888-891-9466
 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Zion Oil & Gas Newsletter
Tuesday, November 1, 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Shareholder and/or Friend of Zion...

October has been a very active month at Zion Oil & Gas.

On October 6, 2011, we signed an agreement with the Geophysical Institute of Israel (GII) for the acquisition of approximately 15 kilometers (9 miles) of seismic data in our recently acquired Jordan Valley License area. The seismic survey is scheduled to commence in late 2011 or early in 2012.

On October 11, 2011, we renewed the lease on our office premises in Dallas, Texas and rented some additional adjacent space in the building. To reduce costs, we are closing Zion's office in State College, Pennsylvania; we will now have space in Dallas for both a geology and engineering department.

After a long period of negotiation with various oil & gas companies, on October 14, 2011, Zion signed a non-binding Memorandum of Understanding (MOU) with a United States based company affiliated with an oil & gas exploration company with significant international operations. We plan that they will provide Zion with an onshore drilling rig with deep drilling capacity and certain other oilfield services for a minimum of three years and for at least three new wells that we plan to drill on our license areas. However, we will need to prepare, negotiate and execute legally binding documentation before we can begin our formal relationship.
 

We are excited and encouraged that, on October 17, 2011 (petroleum geologist, geophysicist and, for eight years, statewide-elected commissioner of the Railroad Commission of Texas - the state's chief oil and gas regulatory agency), Victor G. Carrillo, was appointed as Zion's new President and Chief Operating Officer. Victor was appointed following Bill Ottaviani's departure from Zion, by mutual agreement, on October 14, 2011. Victor has been serving as Zion's Executive Vice President since January 2011 and as a director since September 2010. He will continue to serve as a member of Zion's Board of Directors.

Left to Right: Aaron Kahn (Geologist), Liat Roter (Geophysicist)

On October 23, 2011, we were pleased to welcome an additional staff member to our Israel exploration department: Ms. Liat Roter, a geophysicist who has just completed the work for her Masters (M.Sc.) in geosciences at the University of Haifa. We are steadily improving our exploration department, as that is Zion's 'engine for growth' as we pursue our exploration plans.

Left to Right: Senator Mary Landrieu, Richard Rinberg (Zion's CEO), Ilan Sheena (Zion's CFO)
 

Also on October 23, 2011, a US delegation - the Louisiana Oil & Gas Trade Mission, arrived in Israel. The delegation was led by (The Honorable) Mary Landrieu, Senator for the State of Louisiana. Senator Landrieu is on her third visit to Israel and commented: "... we really value our relationship with Israel and want to see it strengthened".

Louisiana has some of the world's leading companies that deal in developing oil and gas ventures and the delegation comprised a number of oil & gas service providers who are eager to help Israel's fledgling oil and gas industry to grow stronger. On October 24, we attended a seminar on the topic of 'Oil & Gas in Israel' that was arranged under the auspices of the Southwest Louisiana Economic Development Alliance and the US Department of Commerce.

We weren't complete strangers to Louisiana as, for a number of years, Zion Board member (and Petroleum Commissioner for the State of Israel from 1995, until his retirement in 2004), Dr.Yehezekel (Charlie) Druckman, was affiliated with the Louisiana State University at Baton Rouge as a Research Associate in Geology. That evening, US Ambassador, Daniel B. Shapiro, gave a reception at his home in Herzliya.

It is clear that there is a growing interest in Israel's energy industry. That can only be good for Zion, as competition by service providers will inevitably drive down costs for the provision of services.
 

Finally, on October 26, 2011, we received from the Petroleum Commissioner of Israel, as requested, an extension on our Joseph License to October 10, 2012, so we can continue with our petroleum exploration plans on that license area.

Taken together, the various steps we have made in October 2011 position us well for the coming months. We are looking forward to drilling our next well - we plan to start drilling in the first half of 2012 - and are hopeful that the discovery that has so far eluded us will come in 2012.
 

In Latin: "Fortuna erudites favet", in English: "Fortune favors the prepared" and in the Psalms:

"In your good pleasure, make Zion prosper..."

Psalm 51:18

 

Thank you for your support of Zion


Shalom from Israel

Richard Rinberg
CEO of Zion Oil & Gas, Inc.
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to commence a 2D seismic survey, that seismic acquisition is expected to begin in 2011 or 2012, that the results will improve the quality of existing data and increase the chances of success of planned exploratory wells, the sufficiency of cash reserves, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.
 

Contact Information:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (dallas@zionoil.com)

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Tel: 1-214-221-4610 or 1-888-891-9466
 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Zion Oil & Gas Newsletter
Friday, October 7, 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Shareholder and/or Friend of Zion...
 
We are moving forward with our exploration plans.

Recently, we negotiated a seismic acquisition agreement with the Geophysical Institute of Israel (GII) to conduct a 2D field seismic survey in our recently acquired Jordan Valley License area. This past week, the seismic acquisition agreement was signed. The field acquisition is scheduled to commence in late 2011 or early in 2012.

On Thursday, October 6, 2011, we issued a press release regarding the seismic acquisition agreement. You can review the press release at the end of this message.

Previously, Zion's field seismic acquisition programs have involved Vibroseis vehicles to send out the primary seismic energy source.

Vibroseis trucks in Israel.

Vibroseis technology uses vehicle-mounted vibrators (commonly called “vibes”) to transmit seismic energy into the ground that then allows our geoscientists to “see” underground structures.

 
However, this time, in order to bring forward our acquisition date we have decided to use dynamite.

The collection of seismic data involves sending shock waves into the ground and measuring how long it takes for the subsurface rocks to reflect these waves back to the surface.

The shock waves for our seismic acquisition will be generated by exploding small dynamite charges in buried, shallow holes.

When the shock waves created by the dynamite travel into the earth, boundaries between the rocks reflect the waves back, and the arrival times of the waves back at the surface are detected by listening devices called receiver geophones.

Computers then process the geophone data and convert it into seismic lines -- two-dimensional displays that resemble subsurface geologic cross-sections. Data collected in this fashion helps us to create computer models of the underground geometries of the rocks.

Our schedules may change, but today, we believe that it is most likely that Zion’s next well will be drilled in our Jordan Valley License in 2012.

Zion has three petroleum exploration license areas, onshore Israel, comprising approximately 218,000 acres, and we are actively evaluating our licenses and planning for our next wells.

We have 100% working interest in our licenses, an experienced and professional team and unlike many countries and companies... no outstanding debt.
 

...................................................
 

 

 
On Friday evening, October 7, 2011, Yom Kippur (Israel’s 'Day of Atonement') begins. It is a day of fasting, prayer and introspection where we seek forgiveness for wrongs that we may have done.

As I commented in my previous update, the road to success comes through hard work, determination, and personal sacrifice, so, we are redoubling our work efforts and examining every part of our business to ensure that we allocate Zion's strategic resources correctly and execute our planned drilling program with the minimum possible delay.
 

 
“In your good pleasure, make Zion prosper…”

Psalm 51:18

 
 
Thank you for your support of Zion and 'Chatimah Tovah'

(A Yom Kippur greeting, meaning, "May you be sealed in the Book of Life")
 
Shalom from Israel
 
Richard Rinberg
 CEO of Zion Oil & Gas, Inc.
 www.zionoil.com
 
FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, plans to commence a 2D seismic survey, that seismic acquisition is expected to begin in 2011 or 2012, that the results will improve the quality of existing data and increase the chances of success of planned exploratory wells, the sufficiency of cash reserves, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.
 
Contact Information:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (dallas@zionoil.com)

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Tel: 1-214-221-4610 or 1-888-891-9466

 

Zion Oil & Gas Signs Seismic Survey Contract

Dallas, Texas and Caesarea, Israel – October 6, 2011 – Zion Oil & Gas, Inc. (NASDAQ GM: ZN) announced today that it has signed an agreement with the Geophysical Institute of Israel relating to the acquisition of approximately 15 kilometers of 2D seismic lines located within Zion’s Jordan Valley License area. The acquisition is expected to begin in the last quarter of 2011 or the first quarter of 2012 and the total cost of the program, including mobilization and demobilization, is projected to be approximately US$ 380,000.

Zion’s Chief Executive Officer, Richard Rinberg, said today, “The planned seismic survey in our Jordan Valley License area is being carried out in order to add to our existing data and increase the chance of success of exploratory wells in our petroleum exploration efforts. The proposed seismic acquisition is intended to help us to evaluate the next steps we need to take to identify one or more prospects within our Jordan Valley License area.

I am optimistic about the possibility of recovering hydrocarbons within our license areas, onshore Israel, especially due to the U.S. Geological Survey (USGS) report, published in April 2010, containing their assessment that there may be 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of recoverable gas in the Levant Basin, as all of Zion’s exploration rights fall within the area of the Levant Basin.”

Zion’s common stock trades on the NASDAQ Global Market under the symbol “ZN” and Zion’s warrants trade under the symbols: “ZNWAW”, "ZNWAZ" and "ZNWAL".

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv. It currently holds three petroleum exploration licenses: the Joseph License (on approximately 83,272 acres) and the Asher-Menashe License (on approximately 78,824 acres) between Netanya, in the south, and Haifa, in the north, and the Jordan Valley License (on approximately 55,845 acres), just south of the Sea of Galilee. The total license area amounts to approximately 218,000 acres.

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, plans to include up to 15 km of 2D seismic, that acquisition is expected to begin in 2011 or 2012, that the cost will be as projected, that the results will improve the quality of existing data and increase the chances of success of planned exploratory wells, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions 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 homepage may be found at: www.zionoil.com

Contact Information:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com
or by contacting Mike Williams (dallas@zionoil.com)

Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Tel: 1-214-221-4610 or 1-888-891-9466

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Zion Oil & Gas Newsletter

Friday, July 29, 2011

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

During the past weeks, we have been heartened to receive messages of support and encouragement from stockholders who were participating in our rights offering.  

Here is an example of a message sent to Zion's Founder and Chairman, John Brown. (To maintain anonymity, some detail has been removed.):

"Well, I decided to pull the trigger on the full amount allowed for the ZN Rights Offering today. Wrote a note to ZN in Dallas to let them know. Also tried to encourage them a bit in the note. We arrived in Florida and went to our church here. Our Pastor spoke on how to honor God and one point was that to honor Israel is to honor God. Hopefully, that is what we are trying to do with ZN, bring hope and survival resources to a land where these are sorely needed and can help provide security to the Israeli people."

It is very moving and humbling to read such beautiful messages of support.

Just as powerful was the support shown by many stockholders in our rights offering. By the originally scheduled termination date (July 25, 2011), we received subscriptions in excess of US$ 18 million.

In Jewish tradition, letters in the Hebrew alphabet correspond to numbers. (The first two letters of the Hebrew alphabet are 'Aleph' and 'Bet' - hence the English word 'alphabet'). The Hebrew word "CHAI" (meaning "LIFE" in English) corresponds to the number "18". The $18 million brings continued LIFE to our work in Israel.

Even before we finalized the preliminary outcome of the rights offering, we were aware of further substantial subscriptions, but as we had not yet received confirmation from the brokers that the subscription payments had cleared through the banking system, we were unable to include those subscriptions in our initial announcement.

Yesterday, we received final confirmation so, today, we issued a press release containing details of the final outcome of the rights offering, which were, as follows:

In total, subscriptions for approximately 4.9 million units, for gross proceeds of approximately US$24.5 million, were received (including over-subscriptions). All shareholders that requested over-subscription shares will be awarded their full over-subscription request.

As you can read in the press release, I commented that, "I am very pleased with the final outcome of our stock rights offering. We received subscriptions for almost 80% of the offered rights and now have the financial resources to significantly further our exploration and multi-well drilling program in Israel."

If you wish to review the press release, please click here.  

In my news update on July 1, 2011, I noted that, based on the interpretation of the logging data that we obtained, there was little chance that the Ma'anit-Joseph #3 (MJ-3) well contained hydrocarbons in commercial quantities. However, as we recorded significant natural gas shows during drilling, we determined that it was in Zion's best interest to test the well.

This past week, Schlumberger, one of the world's leading oilfield services provider, performed an open-hole drill stem test and the test results confirmed that the MJ-3 well does not contain hydrocarbons in commercial quantities. Our geologists continue to analyze information gained during the 11 months of MJ-3 well operations - one of the deepest onshore wells ever drilled in Israel. They continue to reexamine their understanding of the geology of our license areas and we believe this reexamination should increase the probability of success in drilling future wells. No decision has yet been made with regard to the future utility and possible use of the MJ-3 well.

As I have previously mentioned, we are one of the first companies to have drilled this deep in Israel. We are truly drilling in uncharted territory and while we are assisted by modern geophysical data (seismic, gravity, magnetic) and other non-drilling exploratory options available to us, actual deep drilling is the best way to understand the geology of our license area and the possibilities for hydrocarbon discovery. As noted below, the drilling, logging and testing of the MJ-3 well has definitely furthered our understanding of the areas under exploration.

With regard to our future work, here are some of the areas on which we continue to work:

(i) The Joseph License - (on approximately 83,000 acres)  

The drilling, logging and testing of the MJ-3 well gave us much information that is still being reviewed and analyzed. In light of the information gained, our geologists are refining their understanding of the overall geology and stratigraphy of our areas under exploration and of Northern Israel. There is at least one large nearby geologic structure that is being considered for key features that are normally associated with hydrocarbons. If we ultimately determine that we have to drill 'deeper', we want to ensure that the next drilling rig we use has the capacity to reach the deepest possible geologic target, rather than the previous rig that could only drill up to approximately 20,000 feet. This will provide more flexibility in our drilling program. We are also examining the possibility that there are continuous hydrocarbon-bearing strata that extend into our Joseph License from a currently hydrocarbon-producing region to the south of this license. Clearly, we still have much geological and geophysical work to carry out, but our drilling and testing, to date, have furthered our understanding of our petroleum exploration areas.  

(ii) The Asher-Menashe License - (on approximately 79,000 acres)

In July, Israel's Petroleum Commissioner granted Zion a one-year extension of this license, in keeping with normal extension procedure. With information gained from drilling our recently finished MJ-3 well, our geologists will continue to examine the geology, stratigraphy, and hydrocarbon potential of this area to help determine our proposed future work schedule on this license area.

(iii) The Jordan Valley License - (on approximately 56,000 acres)

This past week, Zion's Victor Carrillo, Dr. Eliezer Kashai and Aaron Kahn, along with Viking International's seismic data acquisition specialist, Robert Dunn, were in the field, scouting the surface geology and discussing our upcoming proposed seismic acquisition. We plan to design seismic acquisition and processing parameters to enhance the likelihood of obtaining better quality deep seismic data, onshore Israel, to enable us to "see" better into the subsurface and thus minimize future drilling risk. Subsequently, Victor Carrillo and Robert Dunn met with Dr. Uri Frieslander, General Manager of the Geophysical Institute of Israel, to discuss Zion's future seismic acquisition plans. We were awarded the Jordan Valley License in April 2011 and we plan to drill a well within the license area by April 2013, at the latest.

(iv) Zion Drilling 

As previously noted, we have been pursuing the idea of establishing Zion Drilling to ensure that Zion has control of a suitable drilling rig with the ability to drill deep onshore wells in Israel. We are looking for our next rig to have the ability to drill to a depth of up to 25,000 feet. We have now received two draft Memorandums of Understanding from interested companies. Whoever we decide to proceed with, we plan to insist that Zion Oil & Gas has majority control of its subsidiary, to be named Zion Drilling.

We plan to implement a multi-well program in Israel and have a number of opportunities that we wish to pursue, at the appropriate time.

(v) Future possibilities

We have three applications for new exploration areas pending before the Israeli Petroleum Commissioner's Office: the Asher-Joseph Permit, the Zebulun Permit and the Dead Sea License.

I remain optimistic about the possibility of recovering hydrocarbons on our license and permit areas, onshore Israel, especially due to the U.S. Geological Survey (USGS) report, published in April 2010, containing their assessment that there may be 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of recoverable gas in the Levant Basin, as all of Zion's exploration rights fall within the area of the Levant Basin.

You can review the USGS Survey report if you click here.

"In your good pleasure, make Zion prosper..."

Psalm 51:18

Thank you for your support of Zion and Shalom from Israel.

Richard Rinberg  

CEO of Zion Oil & Gas, Inc.

www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, the formation of a drilling subsidiary and the negotiation and execution of agreements related thereto, the ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.

 

Contact Information:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

More information about Zion is available at www.zionoil.com

or by contacting Mike Williams (dallas@zionoil.com)at:

Zion Oil & Gas, Inc.

6510 Abrams Rd., Suite 300,

Dallas, TX 75231.

Tel: 1-214-221-4610 or 1-888-891-9466
 

Dear Shareholder and/or Friend of Zion...

Our mission is to explore for oil and gas in Israel and the State of Israel has granted Zion Oil & Gas petroleum exploration licenses that enable us to carry out our work.

Yesterday, Thursday, May 26, 2011, we received the formal documentation relating to our new Jordan Valley License from Israel's Petroleum Commissioner. The area of this license is approximately 226 square kilometers (equal to 55,845 acres).

Zion's Joseph License and Asher-Menashe License cover a total of approximately 162,000 acres. So, together with the Jordan Valley License, we now have a total of approximately 218,000 acres of petroleum exploration license area in northern Israel .This past week President Barack Obama called for a Middle East peace agreement based partly on boundaries in place before Israel's territorial gains in the 1967 war (the Six Day War). I know that some of our stockholders will want to know how proposed peace treaties and border changes could impact on Zion Oil & Gas and their investment.

Please note that all of Zion's current exploration areas fall within the pre-1967 borders. So, any proposed border changes as a result of peace treaty negotiations are highly unlikely to affect our licenses or our work.

As you can read below, our drilling operations during the past two weeks at the "Ma'anit-Joseph # 3 site have been proceeding well. We believe that penetrating the Permian geological layer with its potential for reservoirs is now very close within our grasp. We are all energized by the thought that, after years of work, we may soon achieve one of our long sought after goals.

We are careful to report on our operations in a fair and unbiased manner. When there have been problems, we have reported on them. On the other hand, when there is good news, I believe that we should also share that information - but in a way that does not cause unrealistic expectations.

During the last few days, we have been monitoring shows of natural gas coming out of the well. When we drilled the Ma'anit-Rehoboth #2 well, we also saw some indications of natural gas, but not as much as we have seen this past week. At this stage, all we can report is that we have seen evidence of hydrocarbons at the Ma'anit-Joseph #3 well. We cannot say anything about whether the current well will ultimately prove commercial or not. But clearly, this makes us all the more determined to continue to drill deeper into what we perceive to be the Permian targets in this well.

I'll conclude with a quote from Israel's outgoing Petroleum Commissioner, Dr. Ya'akov Mimran, who retires on May 31, 2011. This week, in an interview about Israel's oil & gas industry, published by "Globes" (Israel's business journal), he said:

"I'm very optimistic about both gas and oil discoveries. We're in a good place on the road. I also have faith in onshore wells by companies such as... Zion Oil & Gas Inc. (NASDAQ:ZN), which are targeting deep strata..."

.........................................................

Turning to our upcoming Annual Meeting of Stockholders, as this is so important to our good administration, I want to repeat a very important message for you, if you are a Zion Stockholder.

(i) the internet (go to www.proxyvote.com)

(ii) telephoning: 1-800-690-6903

(iii) mail (by returning your voting card).

Zion has a great number of individual stockholders (as opposed to a few large institutions holding large blocks of stock), so please watch out for your voting card and take the few minutes to vote. Without your support with voting, we may have difficulty in properly administering Zion Oil & Gas, Inc. We depend on you to support us, so..

"In your good pleasure, make Zion prosper..."

Psalm 51:18

Thank you for your support of Zion and Shalom from Israel.

Richard Rinberg

CEO of Zion Oil & Gas, Inc.

www.zionoil.com

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Zion Oil & Gas Newsletter

Wednesday, May 4, 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Zion Family and Friends,

I wanted to share with you a recent article written about Zion Oil & Gas, Inc. and ask you all to please continue to pray for Israel
(Isaiah 41:8-10) and the Ma'anit Joseph #3 well that we are currently drilling in Israel. (Isaiah 45:3)

  Shalom,

                                    John Brown

"Then Israel sang this song: 'Spring up, O Well! All of you sing to it.'"

(Numbers 21:17)

Published on GlobalPost (http://www.globalpost.com)

Israel: The oil of Zion By Kevin Douglas Grant[2]May 3, 2011

Prophecy and science converge in Israel's oil and gas boom.

CAESAREA, Israel - John Brown first came to Israel in 1983 with visions of striking oil. He didn't care that geologists had written off that possibility as absurd.

Already a successful manufacturing executive, Brown was a recently born-again Christian when he boarded a flight for Jerusalem. The words of Christian evangelist Jim Spillman were fresh in his mind:

"The Bible tells us that God has left us petroleum in Israel."

"I read the scriptures and it seemed to be pretty clear to me that there was evidence of hydrocarbons in Israel," said Brown, who is now 71 years old.

Oil industry insiders mocked Brown for years, laughing that he had picked the only country in the Middle East without any oil.

It turned out, of course, that Brown was right all along.

Almost 30 years later, he is the founder of Texas-based, NASDAQ-traded Zion Oil and Gas. The company, founded in 2000, operates exploratory wells in Israel. Its stock price has been boosted by a string of discoveries beginning in 2009 that confirm some of what Brown had been saying from the start.

"Everybody accepts now that there are large deposits of hydrocarbons in and around Israel," said Richard Rinberg, an Orthodox Jew who has served as Zion's CEO since 2005. "And everybody's drawn to the area now - the hot money is coming in. The geology confirms the theology."

The United States Geological Survey announced last year that the Mediterranean waters off Israel's coast contain 1.7 billion barrels of extractable petroleum and 122 trillion cubic feet of natural gas - enough to radically transform Israel's geopolitical fortune this century. The country's longstanding desire for energy independence has only been accelerated by the recent instability in Egypt [3], which supplies 40 percent of Israel's natural gas.</s pan>

Zion Oil's board of directors, which includes a former Chevron executive and the chairman of the Railroad Commission of Texas, has attempted to balance their religious motivations with the exacting standards of business and science.

They all agree that central to their mission is helping Israel become more stable and energy independent.

"We're just a bunch of guys who really love Israel," Brown said.

"As in a great book, you can come at it from any direction you wish," said Rinberg, who moved his family to Israel from England in 1996. "John Brown came from Biblical understanding. To run a corporation in the 21st century, you need to do scientific investigation and use high-tech techniques."

But the company - which has the motto: "A special company ... A special task ... A special country" - is still waiting for its big find. Much larger companies, meanwhile, are enjoying huge success. The Texas-based multinational, Noble Energy, is preparing to extract trillions of cubic feet of natural gas from its recently discovered Tamar and Leviathan fields near Haifa.

Tamar alone is expected to meet Israel's own gas needs for at least three decades, while the much larger Leviathan could make Israel an exporter for the first time in its history as soon as next year. Tax revenues from the gas could amount to $500 million a year.

"Frankly the only thing we're missing is a discovery to announce," Rinberg said, expressing an optimism that's become one of Zion Oil's trademarks.

The state of affairs in Israel has changed drastically since 2003, when Rinberg first got involved in Zion as a venture capitalist.

"I found the idea of oil in Israel compelling on a number of levels, both business and spiritual," Rinberg said. "Before the Tamar discovery in January 2009, when I would tell people what I was doing, it was not uncommon for them to burst out laughing."

These days, several of Zion's competitors are laughing with delight. Just south of where Zion's drilling rights end, Jerusalem-based Givot Olam discovered one of the country's largest onshore oil fields, Meged, in 2004. Producing since last year, Meged contains an estimated 1.5 billion barrels of oil at the "Megged 5" well a few miles east of Tel Aviv.

"For many years we drilled wells without success," said Tuvia Luskin, Givot's founder. "Megged 5 is an event like the giving of the Torah."

If Brown is envious of Luskin's good fortune, he doesn't show it.

"He had the exact same scriptures I had," Brown said. "Now he's produced the oil and I think we're up next."

Zion focuses its operations along a stretch of land between Caesarea and Haifa in northern Israel. Brown selected it after reading the Spillman's 1981 tract, "The Great Treasure Hunt."

It prophesized huge quantities of petroleum under that land based on a passage from Deuteronomy, which reads: "Most blessed of sons be Asher. Let him be favored by his brothers and let him dip his foot in oil at the head of Joseph."

Brown said the scripture has guided him since he first visited Israel in 1983.

"I Iooked at a Biblical map, and it looked like there was an outline of a head," he said. "It was perfectly clear to me that was where the oil was. And that's where we are today."

Many Biblical scholars say the scripture doesn't reference petroleum at all, but rather olive oil, still abundantly produced in the region.

Brown is not very concerned about the distinction, even if Zion's decade-long endeavor has yet to produce any petroleum.

"There's no way I'm wavering," he said. "In evangelical jargon, what I am is a faith guy and I act on it."

Israel's natural resources inspire a religious fervor even among secular adherents, domestically and around the world.

"This is a national treasure," said Alon Ben-Meir, a professor at New York University and The New School, in reference to Israel's natural gas. "It belongs to the people, not to anyone else."

Israel, Lebanon, Palestine, Cyprus and Northern Cyprus can all lay claim to some of the natural gas within their respective maritime borders, which were never clearly defined. Israel is working with Cyprus but is locked in a bitter dispute with Lebanon [4], which is also banking on the newly-discovered gas fields to relieve its energy woes and pad government accounts.

"Lebanon is laying claim only now that great wealth has been discovered," Rinberg said. "Now that we've done the work, they say, 'Oh, you've stolen it from us.'"

In its ongoing quest, Zion Oil has begun operating one of the deepest exploratory wells on Israeli soil.

"People ask about Texas and the Middle East where you have loads of oil near the surface," Rinberg said. "In Israel, we believe the oil is a lot deeper."

Brown said he is enjoying the process of exploration and has no doubt that Zion will eventually meet with success.

"It was God's decision that we come here," Brown said. "If it were just economic, I wouldn't be here, I'd be in Texas where all the oil is. We're here to help Israel."

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Zion Oil & Gas Newsletter

Friday, April 15, 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

Dear Shareholder and/or Friend of Zion...

I am pleased to advise you that the State of Israel has advised us that we will be granted a new license area on land that was previously within our (now expired) Issachar-Zebulun Permit area. The new license is termed by us the Jordan Valley License and we are excited to have received the grant of this new license area, as we believe that it holds great promise for petroleum exploration. You can read the full press release below.

The history of the new license area is, as follows. In August 2009, we were awarded a preliminary exclusive petroleum exploration permit on approximately 165,000 acres onshore Israel.  The Issachar-Zebulun Permit allowed us to conduct, on an exclusive basis through February 23, 2011, preliminary investigations to ascertain the prospects for discovering petroleum in the area covered by the permit. Unlike a license area, where test drilling may take place, no test drilling is allowed on a permit area.

On February 17, 2011, prior to the expiration of the Issachar-Zebulun Permit, we submitted an application to the Petroleum Commissioner for an exploration license on approximately 87,000 acres of land - the Jordan Valley License Application. We have now been advised that our application for that exploration license has been granted and we anticipate receiving the formal license grant soon.

In my previous update to you on April 1, 2011, I noted that we were 'directionally' drilling the Ma'anit-Joseph #3 well (meaning that we were drilling at a slight angle to the vertical) and had reached a measured depth of 16,580 feet (5,053 meters). Zion's target depth for this well is approximately 19,360 feet (5,900 meters), so we had completed approximately 85% of the drilling.

I also commented that drilling at such great depths brings with it great technical challenges and that, as I wrote, we were having to work the stuck pipe loose, although we did have full mud circulation and rotary movement on the drilling bit.

Shortly after distributing the update, it appeared that the drilling bit became stuck in a layer of shale and then (as we later found out) that the drill pipe had sheared apart, due to torsion stress. We pulled the vast majority of the pipe out of the hole (as you can see in the photograph below) leaving a 'fish' in the hole of approximately 951 feet (290 meters) in length.

As we were not able torecover the 'fish' in an economical manner, we will start a new (#2) sidetrack wellbore (with adjusted mud weight, to deal with the shale we encountered).

Clearly, drilling at over 16,400 feet (approximately 5 kilometers) deep is not a simple or easy matter and, as drilling proceeds, we have lost a lot of sleep. But, although we may have lost a battle or two, I believe that we will win the war and reach our target of approximately 19,360 feet (5,900 meters).

I agree with the words of Winston Churchill, "Sure I am of this, that you have only to endure to conquer. This is no time for ease and comfort. It is time to dare and endure" and certainly with the words of Proverbs 3:5,6.

As I write, we are making final preparations to drill the new (#2) sidetrack wellbore. As I noted in my previous update, I do believe that we have a team with all of the necessary professional skills to meet the challenges of drilling at such great depth. In my next update to you, I will give you our new estimated time to reach our target depth.

 

Here is this week's operational update: 

The Ma'anit-Joseph #3 Wellsite

Drilling Operations at the Ma'anit-Joseph #3 Wellsite

On February 23, 2011, directional drilling operations began on the Ma'anit-Joseph #3 sidetrack well with a kick-off point at approximately 13,220 feet (4,030 meters). 

In the previous well progress update, we reported reaching a measured drill depth of 16,580 feet (5,053 meters) and noted that we had drilled deeper (stratigraphically) than the depth achieved in the original vertical hole. This depth was confirmed (by bio-stratigraphic analysis) to contain rock of Lower Triassic age, implying that we could very soon be entering our target formations in Permian age rock.

When drilling through the Lower Triassic depths, we encountered a section of rock formation with a significant tendency to cave in to the wellbore. Possibly, this caving tendency is due to unusually strong sheer forces acting on the formation. The drill string became stuck in this layer of rock and our initial attempt to free the pipe was successful.  However, in pulling the drill string out of the hole to inspect its condition, the pipe assembly again became stuck.

Despite several efforts to free the drilling assembly, it remained irretrievably stuck. Ultimately, the drill string parted deep in the hole, allowing us to retrieve all but the lowest portion of the drilling equipment.

Due to the directional geometry of the well and the location of equipment remaining in the hole, retrieving or fishing for this equipment was not economically feasible. So, the decision was made to immediately drill a second sidetrack well.

The second sidetrack well is projected to start at a depth approximately 1,000 feet (304 meters) lower than the first sidetrack well and will take advantage of the well design from the first sidetrack to minimize twists in the shape of the new well path. Also, the mud system will be further modified to address the previously unexpected sheer forces of the rock encountered in the Lower Triassic.

We are also incorporating "lessons learned" from other wells drilled through these rock formations.  The nearest well to penetrate the Lower Triassic and older rock types, however, is a distance of approximately 34 miles (55 kilometers) away from the Ma'anit-Joseph #3 well, making geologic and operational correlations between the two wells highly uncertain.

Nevertheless, our target remains the Permian geological layer, at a projected true vertical depth of approximately 19,360 feet (5,900 meters) and we are making progress.  Today, we are placing a cement plug in the bottom of the first sidetrack well and will soon "kick-off" (start drilling) the second sidetrack well.

"In your good pleasure, make Zion prosper..."

Psalm 51:18

Thank you for your support of Zion and Shalom from Israel

Richard Rinberg 

CEO of Zion Oil & Gas, Inc.    

www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.  

Contact Information

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

More information about Zion is available at www.zionoil.com or by contacting

Mike Williams at:

Zion Oil & Gas, Inc.

6510 Abrams Rd., Suite 300, Dallas, TX 75231

telephone 1-214-221-4610 or 1-888-891-9466

email: dallas@zionoil.com 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Zion Oil & Gas to be Awarded

New Petroleum Exploration License Onshore Israel

Dallas, Texas and Caesarea, Israel - April 14, 2011 - Zion Oil & Gas, Inc. (NASDAQ GM: ZN) reported today that the Israeli Petroleum Commissioner's Office, on behalf of the State of Israel, has notified Zion that it will be awarded a new petroleum exploration license on land within Zion's previous (and now expired) Issachar-Zebulun Permit area. The new license has been named by Zion, the "Jordan Valley License". Zion expects to formally receive the license soon.

The Jordan Valley License area is to the east of Zion's Joseph license area and Zion's Asher-Menashe license area and to the south of the Sea of Galilee. It traverses south along the western Jordan River Valley.

Zion's Chief Executive Officer, Richard Rinberg, said today, "We are truly excited and very pleased that the State of Israel will award us our new Jordan Valley License. We continue to implement our exploration and drilling program and build on our progress to date. In 2011, we intend to acquire additional seismic and other geological and geophysical data in our new license area, as we endeavour to refine our potential drilling prospects in this area. Meanwhile the drilling operations at our Ma'anit-Joseph #3 well continue, as we strive for our primary target in deep Permian age rock, expected at a depth of over 19,000 feet (5,790 meters). The Ma'anit-Joseph #3 well is already one of the deepest wells ever drilled onshore Israel."

Zion's common stock trades on the NASDAQ Global Market under the symbol "ZN".

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 License and the Asher-Menashe License, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres.

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's planned operations, drilling efforts and potential results 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 homepage may be found at: www.zionoil.com

Contact:

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

Mike Williams:

Telephone: 214-221-4610       
Email: dallas@zionoil.com

March 18, 2011 

Dear Shareholder and/or Friend of Zion...

Since my previous update to you on March 4, 2011, we have been 'directionally' drilling the Ma'anit-Joseph #3 well (meaning that we are drilling at a slight angle to the vertical) and have now reached a measured depth of 15,030 feet (4,581 meters).

The Ma'anit-Joseph #3 well is already one of the deepest wells ever drilled onshore Israel. Almost certainly, stratigraphically (i.e. with regard to the age of the sedimentary rocks in the rock strata), in Northern Israel, no-one has ever drilled as deep as our current well has already been drilled.

You can read an operational update below. We plan to reach the Ma'anit-Joseph #3 well's target depth, in Permian age rock formations, in late April 2011, assuming no additional technical difficulties occur.  

Our reduced ZNWAW warrant exercise price program, which was in effect since January 3, 2011, expired on March 7, 2011, and the original exercise price of $7 has been reinstituted for all remaining unexercised warrants with the symbol ZNWAW. You can read full details of the outcome of our reduced ZNWAW warrant exercise price program in the press release that we issued on March 11, 2011. If you wish to read the press release, please click here.

Zion has the following securities in issue and trading on the NASDAQ Global Market stock exchange:

(a) common stock trading under the symbol "ZN".

(b) $7 warrants trading under the symbol "ZNWAW". These warrants will continue to be exercisable through January 31, 2012.

(c) $4 warrants trading under the symbol "ZNWAZ". These warrants will continue to be exercisable through December 31, 2012.

On March 16, 2011, we filed our 2010 financial results with the U.S. Securities and Exchange Commission (the SEC). Zion's financials for the 2010 calendar year contain a tremendous amount of information regarding Zion, so you may wish to review them. If you do, please click here.

Here is this week's operational update:  

 

 The Ma'anit-Joseph #3 Wellsite  

www.zionoil.com   

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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.  

More information about Zion is available at www.zionoil.com

or by contacting Mike Williams at:

Zion Oil & Gas, Inc.

6510 Abrams Rd., Suite 300, Dallas, TX 75231

telephone 1-214-221-4610  

email: dallas@zionoil.com

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

February 4, 2011

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


 

I am pleased to report that Victor Carrillo (who joined Zion's Board of Directors in September 2010)
has recently joined Zion's full time management staff as Executive Vice President.
To read the full press release, please click here.

Left to Right: Victor Carrillo and Richard Rinberg (CEO)

Victor is a petroleum geologist and geophysicist and has over twenty years of experience in the oil and gas industry.
Until December 2010, he was Chairman of the Texas Railroad Commission (the agency that oversees the oil and gas,
pipeline and surface mining industries in Texas).

Meeting with Israel's Petroleum Commissioner, in Jerusalem.
Left to Right: Bill Ottaviani, Victor Carrillo, John Brown and Commissioner Dr. Ya'acov Mimran

Turning to financial matters, on January 3, 2011, we issued a press release concerning our ZNWAW warrants.
To read the full press release, please click here.
 

If you hold ZNWAW warrants, you should carefully review both the press release and my comments below.

 Finally, here is this week's operational update:

You can find details regarding the offer on Zion's website. Please click here.

If you hold the ZNWAW warrants, please consider this opportunity.

www.zionoil.com

To: All my fellow Christian Zionists in the Faith of our Father Abraham (Romans 4:11-13)

While this journey has been long and very difficult at times, I am no less patiently, determined and committed "By Faith" (Hebrews 11:1) to see these prophecies come to pass (Hebrews 10:35, 36).  I want to encourage you all that while we continue to work hard in Israel, I believe that some of the prophecies in the Bible, relating to the oil and gas in Israel, may have already happened.

On December 7, 2010, Rabbi Nasanya Zakon visited our offices in Dallas, Texas and taught us about Hanukkah and for your information it is written in John 10:22 that Jesus also attended, in Jerusalem, The Feast of the Dedication (Hanukkah). During Rabbi Zakon's visit he blessed us by sharing a Hanukkah miracle of healing that his wife was given by God. You can read about God's mystery and that all of God's gifts are without repentance in Romans 11:25-29.  In other words, "miracles still happen to both Jews and Christians".

"He staggered not at the promise of God through unbelief; but was strong in faith, giving glory to God; and being fully persuaded that what he had promised, he was able also to perform." Romans 4: 20, 21

 

1 Corinthians 9:19-23
 

 

Pandit commented: "We feel that Israel has huge growth opportunities, and we are here to be a part of this."

You may wish to review the Frequently Asked Questions (FAQs) relating to the rights offering on our website at:  www.zionoil.com/investor-center 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Zion's CEO, Richard Rinberg, at the Knesset on Tuesday, November 30, 2010

The Geophysical Institute of Israel team visit the Ma'anit-Joseph #3 well

The drilling rig at the Ma'anit-Joseph #3 wellsite on December 1, 2010

www.zionoil.com

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 November 26, 2010
 

Zion's homepage may be found at: www.zionoil.com

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Left to Right: Richard Rinberg (Zion's CEO), Victor Carrillo, John Brown,
Dr. Ya'acov Mimran and Bill OttavianiJohn Brown and Victor Carrillo also v
isited the Ma'anit-Joseph #3 wellsite to view the drilling operations.

Drilling Operations at the Ma'anit-Joseph #3 Wellsite

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 will send you the prospectus if you request it by calling
toll free 1-888-TX1-ZION (1-888-891-9466).

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

On Monday, October 25, 2010, Dr. Victor Bariudin ('Senior Coordinator - Oil & Gas Production' at the Ministry of National Infrastructures) visited our Ma'anit-Joseph #3 wellsite. I am happy to report that we received only positive comments from him, such as "a very professional and neat wellsite".

Dr. Victor Bariudin viewing the Blow Out Preventer (BOP) under the rig, at the Ma'anit-Joseph #3 wellsite

Dallas, Texas and Caesarea, Israel - September 20, 2010 - Zion Oil & Gas, Inc. (NASDAQ GM: ZN) announced today that it intends to launch a rights offering. Under the rights offering, Zion will distribute non-transferable subscription rights to holders of Zion's common stock on the close of business on the record date of September 28, 2010, to purchase their pro rata portion of approximately 3.8 million Units of Zion's securities. Each Unit will consist of one (1) share of Zion's common stock and one (1) warrant to purchase an additional share of Zion's common stock at an exercise price of $4.00.
 
Under the rights offering, stockholders of record on the record date will therefore have the right to subscribe for eighteen (18) Units for every one hundred (100) shares of common stock owned on the record date, equivalent to 0.18 subscription rights for each share of common stock owned on the record date.
 
Each whole subscription right will entitle the stockholders of record on the record date to subscribe for one Unit at the per Unit purchase price of $5.00.  The warrant will be exercisable for a two year period beginning on the closing date after the rights offering expires.
 
If the Company receives valid subscriptions for all of the Units available under the rights offering, then the gross proceeds of the offering will be approximately $19 million, before offering related expenses which the Company estimates should not exceed $150,000. This figure does not include proceeds, if any, from any future exercises of the warrants.
 
The rights offering is planned to commence as soon as practicable after the record date and to continue through 5:00 p.m. Eastern Standard time on November 15, 2010, subject to Zion's right to extend the offering in its sole discretion.
 
The rights offering will include an over-subscription privilege, allowing a stockholder who exercises all of their basic subscription privilege the right to purchase additional Units that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of Units among stockholders exercising their over-subscription right.
 
The proceeds of the rights offering will be used to further Zion's oil and gas exploration program and, depending on the amounts raised, implement its plans to establish a drilling company to acquire control of the rig currently being used in its drilling.
 
As soon as possible after the record date, Zion plans to mail to holders of its common stock (as of the close of business on the record date) a prospectus and other items necessary for exercising the rights. Shareholders who hold their shares in a bank or broker name will receive the rights offering material from their bank or broker. The prospectus will contain a description of the rights offering and other information.
 
This announcement is neither an offer nor a solicitation of any offer. The securities are offered by prospectus only, and only within those States and other jurisdictions in which the securities may be sold, and this announcement is neither an offer to sell nor a solicitation of any offer to buy in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities of any such state or jurisdiction. The rights offering will be made by means of a prospectus supplement that will be filed by the record date (File No. 333-164563).
 
Zion's common stock trades on the NASDAQ Global Market under the symbol "ZN".
 
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 and the Issachar-Zebulun Permit Area, adjacent to and to the east of Zion's Asher-Menashe license area, covering approximately 165,000 acres. Zion's total petroleum exploration rights area is approximately 327,000 acres.

FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's planned operations, drilling efforts, proceeds of the rights offering, the successful establishment of the drilling subsidiary and the negotiation and execution of definitive agreements with Aladdin Middle East Ltd. (the current owner of the drilling rig) with respect thereto and potential results thereof and plans contingent thereon and the gross proceeds of the rights offering, are forward-looking statements as defined in the "Safe Harbor" provisions 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.
 
For more information regarding the rights offering or to request copies of the prospectus supplement relating to the rights offering when it becomes available, you may contact us by calling toll free 1-888-TX1-ZION (1-888-891-9466) or by contacting the Dallas Office at Zion Oil & Gas, Inc.,
6510 Abrams Rd., Suite 300, Dallas, TX 75231;
telephone 1-214-221-4610;

Email: dallas@zionoil.com.
Copies of the prospectus supplement, when available, will be available for viewing on the
website of the U.S. Securities and Exchange Commission located at www.sec.gov.
 
Zion's homepage may be found at: www.zionoil.com
Contact:
Zion Oil & Gas, Inc.
Mike Williams, 214-221-4610
dallas@zionoil.com

Dear Shareholder and/or Friend of Zion
 

Just a short update to keep you informed regarding the drilling operations on the Ma'anit-Joseph #3 well.
 
On August 26, 2010, we announced that drilling operations had begun on the Ma'anit-Joseph #3 well, in our Joseph License area, onshore Northern Israel, and that the drilling operations were expected to last approximately six months.
 
Utilizing the 2,000 horsepower drilling rig used to drill our previous wells, we commenced drilling the Ma'anit-Joseph #3 well, initially towards the secondary target, Triassic age lithology (i.e. rocks), expected below approximately 10,827 feet.
 
We then plan to continue drilling to the primary target, Permian age lithology, down to a planned total depth below approximately 19,357 feet.
 
During the past week, operations have progressed steadily. We drilled a 26 inch hole to approximately 270 feet and then cemented in place an equivalent length of 20 inch casing.  As expected, we found the rock penetrated in this first shallow hole to be rather porous in nature, so extra care was required during the cementing operations, to ensure an adequate seal.  The first length of casing (or "casing string")  run in a well is generally intended to provide hole stability through the largely unconsolidated shallow rock layers.
 
With the first length of casing run, we then resumed drilling, stepping down, as planned, to a 17 ½" hole.  We plan to drill this section of the hole to approximately 3900 feet after which we plan to set our next casing string.  This second length of casing is primarily intended to isolate and protect any natural aquifers penetrated by the wellbore.  The estimated period to drill this next section of hole is approximately two weeks, so we should reach 3900 feet by mid-September.
 
As of Friday, September 3, 2010, we were drilling at a depth of approximately 450 feet. To put that in perspective, 450 feet is the approximate height of a 38-story building. 

 "In your good pleasure, make Zion prosper..."
 Psalm 51:18
 

Thank you for your support of Zion and, for our US stockholders and friends,
I wish you a very happy Labor Day weekend.
 
In addition, if you are observing Rosh Hashana (the Jewish New Year) next week,
I wish you a 'Shana Tova' (Happy New Year).
 
Shalom from Israel
Richard Rinberg 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com 
 
 
FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, anticipated attributes of geological strata being drilled, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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. 
 
 
Contact Information
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com or by
contacting Mike Williams at Zion Oil & Gas, Inc.,
6510 Abrams Rd., Suite 300, Dallas, TX 75231;
telephone 1-214-221-4610; email: dallas@zionoil.com  
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~   

The front gate entrance

The full team assemble
 

 Zion's President and Chief Operating Officer, Bill Ottaviani,
addressing the rig crews
 

 Zion's Exploration Manager, Stephen Pierce,
addressing the rig crews
 

As you can read in the press release, drilling operations are expected to last for six months. I will, of course, ensure that you are suitably updated as we progress.
 
To quote Clement W. Stone (who built the Combined Insurance Company of America into a company with assets exceeding $1 billion, in 1979):
 
"Everyone who achieves success in a great venture, solves each problem as they came to it. They helped themselves. And they were helped through powers known and unknown to them at the time they set out on their voyage. They keep going regardless of the obstacles they met."
 
He also said:
 
"Believe that any goal that doesn't violate the laws of G-d or the rights of your fellow men can be achieved."
 
At Zion we truly believe in these guiding ideas and are putting them into practice.   

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
 
Shalom from Israel
 
Richard Rinberg 
 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Shareholder and/or Friend of Zion
 
I'll start with most welcome news - the rig mobilization (from the Ma'anit-Rehoboth #2 wellsite to the
Ma'anit-Joseph #3 wellsite) has begun, as you can see in the pictures below.
 
Our current schedule indicates an August 17 - 19, 2010 spud date window for the new well and
the latest news regarding rig mobilization sustains that date.
 
Since my last update to you (on July 23, 2010) we have almost completed the site construction for the
Ma'anit-Joseph #3 well.
 
In the past week, I visited the new wellsite, so here are some photographs (from August 3rd, 4th and 5th)
showing that the site has been almost fully prepared. As I walked around the site, I saw that everything was
very much in good order. Due to all the prior planning, our staff and contractors are now implementing their
site construction work in a very calm and professional manner.  

The Ma'anit-Joseph #3 wellsite (Aug 3, 2010)

The Platform showing the 'Conductor Pipe' (that will serve as a guide
for the drill bit when the well is spud) and the 'Mud Pit' (Aug 3, 2010)

A close-up of the Conductor Pipe (Aug 3, 2010)

The 'Mud Pit' being lined (Aug 4, 2010)

 Digging a channel for the service pipes (Aug 4, 2010)

The 'Mud Pit' and the full wellsite (Aug 4, 2010)

The first containers arrive at the wellsite (Aug 5, 2010)

The conductor pipe and base of the rig (Aug 5, 2010)

The mud log unit on site (Aug 5, 2010)

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, spud dates, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, the procurement of needed drilling permits, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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. 
 
 
Contact Information
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
More information about Zion is available at www.zionoil.com or
by contacting Michael Williams at Zion Oil & Gas, Inc.,
6510 Abrams Rd., Suite 300, Dallas, TX 75231; telephone 1-214-221-4610;
email: dallas@zionoil.com  
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
Contact Information

Dear Shareholder and/or Friend of Zion 
 
Since my last update to you (on June 24, 2010) we have made much progress on the drilling front.  In addition,
today, we have made an announcement about management restructuring and an addition to Zion's Board.
 
As you can read here, we announced that Kent S. Siegel, a member of Zion's Board of directors since November 2003,
has been appointed as Chief Financial Officer and Senior Vice President. Mr. Siegel replaces Sandra Green, who has resigned from the Company by mutual and amicable agreement.  I thanked Sandy for her many years of dedicated work
and wished her well for the future.
 
In addition, Patti Beals has been appointed Chief Accounting Officer and Ilan Sheena has been
appointed Vice President and Managing Director of Zion's offices in Caesarea, Israel.  Also, we are
welcoming to the Zion Board, Marc Singer who brings a wealth of business experience to Zion.

 

The vibroseis trucks on the beach by the Mediterranean sea.

 

As you can read below, we have successfully concluded the acquisition of field seismic in both our
Asher-Menashe License area and our Issachar-Zebulun Permit area. The raw data that has been collected
is now being processed for interpretation, both here in Israel and in Houston, Texas.
 
I am pleased to report that the data acquired does seem to be of good quality. This was not easy to achieve,
as in the Asher-Menashe license area, there are some major roads. One night, we arranged for the police to
stop the flow of traffic, so that the traffic 'noise' would not affect the seismic acquisition.
 
Even with the latest computer technology, the data processing will take a number of weeks to produce results
and then the resulting information will need to be carefully built into our geologic computer model by Zion's geologists.
(As a Zion director commented:"If it was easy, then anyone could do it...").
 
As a result, we should be able to have a much better picture of any geologic structures under our
exploration areas and therefore make better decisions regarding our future exploration plans.
 
 
RIGHTS OFFERING 
 
The current rights offering was originally scheduled to terminate on June 30, 2010. However, as preliminary results indicated that the offering had not been fully subscribed, we decided to extend the offering by approximately two weeks, in order to allow more time for subscriptions to be submitted. The new scheduled termination date for the rights offering is Thursday, July 15, 2010.
 
Although, to date, we have raised significant amounts from the rights offering, we believe that the
uncertain market conditions in the past weeks may have impacted negatively on our rights offering.
 
We want to move forward with further work without delay, so we would like to secure the maximum funds possible.
 
Almost certainly there will not be a further extension.  After the termination date of Thursday, July 15, 2010,
we plan to close the offering and issue the shares as soon as practicable, most likely within two weeks following the close.
 
If you want to read the press release regarding the extension of the
termination date of Zion's rights offering, please click here.
 
 
Christians United for Israel
 
As previously noted, Zion Oil & Gas will be sponsoring the "Night to Honor Israel" banquet at the
Fifth Annual Washington-Israel Summit of Christians United for Israel (CUFI). However, this year,
Zion will also be sponsoring CUFI's Ambassadors' Reception.
 
The Summit will take place in Washington, D.C. during July 20th to 22nd and the banquet will take
place on Wednesday evening, July 21, 2010. Pastor John Hagee and Israel's Ambassador to the U.S.,
Michael Oren, are scheduled to speak at the banquet.
 
It is expected that John Brown, Zion's Founder and Chairman, will be interviewed by Pastor John Hagee
during the Summit and that the interview will be broadcast on the Daystar Television Network during the "Night to Honor Israel". In addition, CUFI will broadcast a video about Zion at the banquet's pre-event, and the banquet's proceedings
will be telecast by live-feed over the Daystar Television network. If you want to read the press release, please click here. 

With regard to 'Operations', we are now preparing the concrete platform on the new site of the next well, as you can read.

Ma'anit-Joseph #3 Well (M-J #3)
 
A very important milestone occurred this week when we began site construction for the M-J #3 well. 
This milestone follows the significant amount of effort made by our staff during the past months in
securing the necessary permits allowing us to proceed with construction of the well site. 
 
Our general contractor for the site construction work is a local Israeli construction company well-known for their major infrastructure development work throughout Israel.  Consistent with best practice, we bid the construction work out to several contractors and made our selection based on the company expected to provide the greatest overall value to Zion.
 
Site construction work began on July 4 (Independence Day in the USA) and is expected to be completed
within one month.  As you can see from the photos below, much activity has already occurred.

"In your good pleasure, make Zion prosper..."
 Psalm 51:18

Thank you for your support of Zion, and 
 
Shalom from Israel
 
Richard Rinberg 
 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, the procurement of needed drilling permits, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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 will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).

Dear Shareholder and/or Friend of Zion
 
As Zion's annual meeting is scheduled to take place on Monday, June 14, 2010, in Israel, we are distributing this email one day earlier than normal. This will give those who are not attending the meeting and have not yet voted, a chance to vote. You can vote either by returning your prepaid voting card, by telephone or by way of the Internet

For everyone with an interest in Israel and its energy resources, we are living through momentous times!
 
Recently, 'Oil & Gas in Israel' has been featured in Israel's business news as almost a daily headline event. For example:
 
On June 2, 2010, Israel's business press reported that the estimated natural gas reserves in the Tamar offshore license have been increased... again. They have nearly doubled since the first estimates were published in 2009 and represent approximately 35 years of Israel's natural gas needs at projected 2012 demand rates.
 
On June 3, 2010, Israel's business press reported that initial seismic analysis indicated that the Leviathan prospect, offshore Israel, is estimated at double the size of the Tamar discovery.
 
Clearly the prediction of the United States Geological Survey's report in April 2010 that estimated the undiscovered oil and gas resources of the Levant Basin at a mean of 1.7 Billion barrels of recoverable oil and 122 Trillion cubic feet of recoverable gas in the Levant Basin is beginning to unfold before our very eyes.
 
As all of Zion's exploration areas fall within the Levant Basin... we are very optimistic regarding our petroleum exploration areas, onshore Israel.
 
(You can read the USGS Report if you click here.)
 
Zion Oil & Gas, Inc. was established 10 years ago, at a time when the idea of 'Oil in Israel' was seen as 'very unlikely' (to say the least), as the last major discovery in Israel was the Heletz field (onshore southern Israel) in 1955. Subsequently, Heletz produced more than 17 million barrels of oil.  
 
Now, we have seen a massive gas discovery offshore and even, in December 2009, an announcement of an onshore gas discovery, in another company's license area, just to the south of Zion's license area.
 
The year 1955 was also the one in which Frank Sinatra first sang, "Love & Marriage go together like a Horse & Carriage". From our perspective, where there is 'Gas', there is likely to be 'Oil'. We all know the term 'Oil & Gas'...
 
When Zion's Founder and Chairman of the Board, John Brown, heard the recent news regarding the offshore gas deposits, he pointed to Isaiah 60:5:
 

 "Then you will see this and rejoice, and your heart will be thrilled with joy, because the riches of the sea
will be brought to you. The wealth of the nations will come to you."
 

He commented that, in the short space of ten years, Zion Oil & Gas, Inc. has achieved much. Today, Zion's extensive petroleum exploration areas are very close to world class natural gas discoveries and, in a few weeks, Zion plans
to drill the Ma'anit-Joseph #3 well, deep to reach the Permian geologic layer, in the Ma'anit structure.
 

"Whatsoever the Lord pleased, that did he in heaven, and in earth, in the seas, and all deep places."
Psalms 135:6

As you can read below, there is much pre-drilling operational activity, whether with the field seismic acquisition
that is currently under way, the sourcing of drill pipe and other necessary equipment or our petroleum engineers
fine-tuning the well design for Zion's next well.
 
Of course, none of this could take place without our loyal and, we believe, 'heaven sent' stockholders
who enable us to carry out our work in Israel. Without your continued support, we would be hard-pressed
to continue at our current pace, as exploration costs are substantial.
 
We believe that, subject to the final permits, we are approximately ten weeks away from spudding our next well,
the Ma'anit-Joseph #3 and hopefully much closer to the day when we can also announce a discovery.

As I write, over 1,650 people have viewed our latest film, in which Bill Ottaviani (Zion's President and Chief Operating Officer) and I discuss our goal to establish Zion Drilling, Inc. and purchase Aladdin Middle East Ltd's 2,000 horsepower drilling rig, as soon as practicable.
 
The film gives you a chance to learn the strategic thinking behind some of our business decisions. If you haven't yet watched the film, please take a few minutes to do so and please share the link to the film with your friends.

RIGHTS OFFERING
 
Under the rights offering (see www.zionoil.com/investor-center) Zion stockholders, at the close of business
on May 6, 2010, were issued, at no charge, the following
 
ONE subscription right for every TWO shares of stock owned (as of the close of business on May 6, 2010).
 
Each subscription right entitles the holder to purchase one share of Zion stock at a price of $5.00,
irrespective of the market price at the time of purchase.
 
The subscription rights may be exercised at any time prior to the end of June 2010.
However, after 5:00 pm EDT on June 30, 2010, unexercised subscriptions rights will expire with no residual value.
 
Please note that if you want to exercise your rights and you hold your stock in a brokerage account, then you will
need to contact your broker to determine when and how you can exercise your rights, as each individual
brokerage firm has their own timeline and procedures for processing subscriptions. 
 
As detailed in the press release, we plan to use the proceeds from the rights offering: (a) to purchase
a 51% interest in a new yet to be established company (Zion Drilling, Inc. that will own a 2,000 horsepower drilling rig),
(b) to drill further 'deep' exploration wells on Zion's licenses in Israel (in continuation of Zion's oil and gas exploration efforts) and (c) for general corporate purposes.
 
This opportunity is only available until June 30, 2010, in less than 20 days.

2010 Annual Meeting of Stockholders
 
The annual meeting is scheduled to take place at the Dan Caesarea Hotel in Caesarea, Israel at 2:00 p.m. (local time)
on Monday, June 14, 2010. 
 
The Zion shareholders own Zion Oil & Gas, Inc.,
but management can only manage Zion effectively if you support us by voting your shares.
 
If you have already voted... thank you!
 
But if you haven't yet voted... please take action and...

In prior years, the SEC allowed brokers to vote the shares of stockholders who held shares at the broker but did not express an opinion as to how they wished to vote their shares.
 
The new rules do not allow your shares to be voted on certain items without you personally voting your shares, so please vote your shares today.
 
You can vote either by returning your prepaid voting card, by telephone or by way of the Internet.
 
Your vote really does count, so please take a very few minutes in order to exercise your right as a Zion Oil & Gas stockholder.  

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
 
Shalom from Israel
 
Richard Rinberg 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com 

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, the successful establishment of the drilling subsidiary and the negotiation and execution of definitive agreements with AME (the current owner of the drilling rig) with respect thereto, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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 will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).   

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
 Shalom from Israel
 
Richard Rinberg 
CEO of Zion Oil & Gas, Inc.
 
www.zionoil.com
 

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, the successful establishment of the drilling subsidiary and the negotiation and execution of definitive agreements with AME (the current owner of the drilling rig) with respect thereto, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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 will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). 

Dear Shareholder and/or Friend of Zion...
 
This past week, Israel has been in the news (again) as the 31 members of the group of rich nations, the OECD (Organisation for Economic Cooperation and Development) unanimously voted to invite Israel to join. 
 
OECD's mission is to enhance cooperation among members while meeting high international economic standards; membership will surely boost Israel's economic standing and help attract investment to Israel.
 
The Israeli Finance Minister called the move "historic".
 
We believe that the day will arrive when Zion Oil's work will also be deemed "historic" and are steadily working towards that day.
 
Here is a report of Zion's work during the past two weeks:
 

ONE subscription right for every TWO shares of stock owned.

The USGS report (issued April 8, 2010)"Assessment of Undiscovered Oil and Gas Resources of the Levant Basin Province, Eastern Mediterranean" has attracted much media attention in Israel.
(You can review the USGS Survey by clicking here.)
 
As I noted previously, the USGS Survey estimates a mean of 1.7 BILLION barrels of recoverable oil and 122 TRILLION cubic feet of recoverable gas in the Levant Basin... and that has caught everyone's eye, as the value of the undiscovered oil and gas assessed in the USGS Survey amounts to approximately US$ 650 Billion...
 
and of course all of Zion's exploration areas fall within the Levant Basin...

 The Drilling Rig at Ma'anit

With regard to 'Operations', we are now preparing for the next well, as you can read. 
 
Ma'anit-Rehoboth #2 Well (M-R #2) 
 
This well is currently temporarily suspended for possible future use as an offset well to the Ma'anit-Joseph #3 (M-J #3) well (see below) which is to be drilled a short distance away.  
 
Ma'anit-Joseph #3 Well (M-J #3)
 
Further to our ongoing exploration work on the Ma'anit geological structure, we are quickly moving forward with permitting and planning for the M-J #3 well (targeted for the 'deep' Permian geologic structure).  (Deut. 33:13-16)
 
Our new well design is now finalized and we have begun the process of assembling the various product and service suppliers needed to drill this new well.  To date we have issued (9) Requests for Quotations ("RFQs") to dozens of vendors addressing all the major components needed to drill and test a well:  tubulars, mud system, wireline services, well testing, cementing, etc.  The early indication is that most vendors will participate in our RFQ process and seem quite eager to do business with us in Israel.  We have 'cast a wide net' in soliciting price quotes and will carefully analyze the results, when received, to ensure that we use the best available resources offering Zion the most favorable overall value.  
 
Permitting for the new well continues to move at a very good pace with progress being made on all fronts.  We continue to move forward with both local and governmental groups in assessing needs and working towards mutually agreeable outcomes.
 
Barring any unforeseen delays or complications, we remain on track to "spud" (i.e. begin drilling) the well
in the summer of 2010. 
 
Elijah #3 Well
 
The Elijah #3 well was drilled to a depth of approximately 10,938 feet (3,334 meters) when the drill string became stuck within the Asher Volcanics section of the hole. After recovering a significant portion of the stuck drill pipe, progress in recovering the remainder of the pipe slowed and the decision was made to temporarily suspend drilling operations pending further analysis of the situation.
 
We have decided to acquire additional field seismic data that will help us to resolve certain questions regarding the geology of the area surrounding the Elijah #3 well. The timing for this work is scheduled to take place in mid-summer 2010. 
  
The Issachar-Zebulun Permit Area 
 
Zion and the Geophysical Institute of Israel (GII) have signed an agreement for GII, on behalf of Zion, to acquire approximately 30 kilometers of seismic data in Zion's Issachar-Zebulun Permit area. Permitting for seismic acquisition is already underway and the timing for the field work is scheduled to coincide with the seismic field work for the Elijah #3 project area. 
 
2010 Annual Meeting of Stockholders - in just one month...
 
The annual meeting is scheduled to take place at the Dan Caesarea Hotel in Caesarea, Israel at 2:00 p.m. (local time) on Monday, June 14, 2010.  If you are planning to attend the meeting in person and would like to reserve a room at the Dan Caesarea Hotel, please contact Ora Weisman in our Israel office at ora@zionoil.com

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
 
Shalom from Israel
 
Richard Rinberg 
 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com
 

Dear Shareholder and/or Friend of Zion...
 
During the past two weeks, Israel celebrated its 62nd birthday and, almost to the day, Zion Oil & Gas
celebrated its 10th birthday.
 
According to Harvard University Professor of Economic History, David Landes, "In the last 50 years, only one country in the world has moved from being a third world economy to a first world economy...and that is Israel!"
 
At Zion Oil, we believe that we may be able to help Israel's economy (soon, we hope) by discovering significant quantities of oil and gas onshore in Israel.
 
We are not completely alone in our belief that there are significant quantities of oil and gas waiting to be discovered. You can read below the latest estimates of the United States Department of the Interior (Geological Survey Department) and also the thoughts of Hal Lindsey in his recent weekly report.
 
In any event, our daily efforts continue steadily and with determined focus. So, here is the report of Zion's work during the past two weeks:
 

 

 

 

"But who am I, and what is my people, that we should be able to offer so willingly after this sort? 
For all things come of thee, and of thine own have we given thee."
1 Chronicles 29:14
 
"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
Shalom from Israel
Richard Rinberg 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements
regarding Zion's planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata
being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves,
ability to raise additional capital, the successful establishment of the drilling subsidiary and the negotiation and execution of
definitive agreements with AME (the current owner of the drilling rig) with respect thereto, timing and potential results thereof
and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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 will send you the
prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Shareholder and/or Friend of Zion...
 
I am happy to announce some excellent news. This past week, Zion Oil & Gas and Aladdin Middle East Ltd (AME)
signed a Memorandum of Understanding (MoU) that I believe will not only be good for both
Zion Oil and AME, but also for the State of Israel.
 
The MoU outlines our plan to establish a subsidiary, tentatively named "Zion Drilling, Inc.", for the purpose of purchasing and operating AME's 2,000 horsepower drilling rig (currently located at Zion's Ma'anit-Rehoboth #2 wellsite, in Israel).
 
Zion Drilling, Inc. will purchase AME's drilling rig for an initial payment of US$ 7 million and a series of US$ 1 million additional payments that are anticipated to coincide with our drilling seven additional wells in Israel over the next few years. As the funds for the purchase of the rig are to be provided by Zion Oil & Gas, our plans are subject to a number of events, including due diligence, the raising of additional capital and the establishment of Zion Drilling.
 
Towards that, I am pleased to tell you that, today, our US$ 50 million Shelf Offering S-3 Registration Statement
was declared effective by the Securities and Exchange Commission. So, through the S-3,
we now have the possibility of raising the additional funds required to implement our plans.    
 
The MoU provides that Zion Drilling, Inc. will be 51% owned by Zion Oil & Gas and 49% owned by AME. 
However, AME will be responsible for the daily operation of the rig.
 
Our goal in establishing Zion Drilling, Inc. is to continue to drill wells in Israel without dependence on any outside third party.  By implementing this plan, we will secure control of a drilling rig for our planned future operations and, as a consequence, raise our exploration business to a completely new level.
 
With regard to the Ma'anit-Rehoboth #2 well, you can read below the results of the completion work.  We plan to temporarily suspend work on this well although we may return to the well at some later stage. Although the results of the completion work are not what we had hoped for, as we are not able to announce a commercial discovery, we believe that we have laid an excellent foundation for our next well, (named by us) the Ma'anit-Joseph #3 well.
 
We are currently in the process of obtaining the required permits for the Ma'anit-Joseph #3 well, targeted to reach the Permian geological formation, lying deep beneath the surface. (Deut. 33:13-16)
 
To date, we have not managed to reach the Permian geological layer, even though it has been one of our main goals from the earliest days of the project.  But we are as determined as ever to reach that goal, hopefully, in our next well. (Jer. 29:11)
 
To quote Chuck Davidson, CEO of Noble Energy, the Texas Company that found the Tamar discovery (currently valued at > US$ 15 Billion) offshore Israel: 'There is no such thing as a sure thing in the energy exploration business'.
 
Although this was the case during the Ma'anit-Rehoboth #2 well completion, we are firmly resolved to use all the information and experience that we gained and drill again into the Ma'anit structure. (Psalm 135:6)
 
There are a number of reasons why we are so very optimistic regarding the possibility of finding oil & gas onshore in Israel:
 
(i) During operations, we recovered some crude oil from the Ma'anit-Rehoboth #2 well and we also noted
(much more than expected amounts of) natural gas during the drilling phase.
 
(ii) Last week, the US Geological Survey (USGS) issued a report estimating that there are 1.7 Billion barrels of recoverable oil and 122 trillion cubic feet of natural gas in the Levant Basin Province. The USGS defines the Levant Basin Province as an 83,000 square kilometer area of the Eastern Mediterranean... a large proportion of which is in Israel's economic zone (both offshore and onshore Israel). You can review the map and read the full report here.
 
(iii) This week, representatives of Russian energy giant GAZPROM met with Dr. Mimran, Israel's National Infrastructure Ministry's petroleum commissioner, to discuss the possible involvement of Gazprom with Israel's offshore natural gas fields. The press also reported that: 'a number of other Russian energy giants are showing interest in the Israeli energy and infrastructure sector.'      
 
(iv) Within the past two weeks, 'Globes'(one of Israel's leading business publications) published an interview with Fred Zeidman, who has been Chairman of the Board or a director of various Texas based oil & gas drilling / exploration / refining companies. In 2002, President Bush appointed him 'Chairman of the US Holocaust Memorial Council'.
 
Fred Zeidman made a number of comments regarding the (very bright) future for oil exploration in Israel, including:
 
1. The prospects in Israel are 'brilliant'.
 
2. The (Tamar etc.) offshore findings were amazing and it is hard to believe that there are no hydrocarbons onshore.
 
3. It could be that the onshore deposits will be found 'much deeper'. (This comment was no surprise to us, of course.)
 
4. Royalties in Israel of 12.5% are reasonable.
 
His advice to investors is that investment in oil and gas can be wonderful, but you need 'patience'. 
However, the reward, once successful, is enormous.
 
We are certainly unhappy that we were not able to declare a commercial discovery as a result of the recent completion operations. But our team remain convinced that our license areas and our permit area will ultimately deliver to us their deeply hidden treasure... in G-d's good time.
 
We have both the patience and the firm resolve... and now, we expect to soon have the right tool to finish the job -
a 2,000 Horsepower drilling rig in Israel on a permanent basis.   

 

"In your good pleasure, make Zion prosper..."
 
Psalm 51:18

Thank you for your support of Zion, and 
 
Shalom from Israel
Richard Rinberg 
CEO of Zion Oil & Gas, Inc. 
 
www.zionoil.com  

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion's planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, the successful establishment of the drilling subsidiary and the negotiation and execution of definitive agreements with AME with respect thereto, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the "Safe Harbor" provisions 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 will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).