Zion Oil & Gas Ends Its IPO Successfully with a Total Raised of $12,644,345

CAESAREA, Israel--(BUSINESS WIRE)--Richard Rinberg, Chief Executive Officer of Zion Oil & Gas, Inc. (AMEX:ZN), of Dallas, Texas and Caesarea, Israel, announced today that the company issued 48,947 shares of common stock in the eighth and final round of its initial public offering. Zion's offering was underwritten on a best efforts basis by Network 1 Financial Securities, Inc. of Red Bank, New Jersey. The shares were issued at $7 per share, and the amount raised in the eighth round was $342,629. In its IPO, that ended on May 25, 2007, Zion issued a total of 1,806,335 shares in consideration of a total of $12,644,345.

Mr. Rinberg also announced that Zion’s workover operations in its Ma’anit #1 well continue, in preparation for the well’s testing. Additionally, orders for the remaining longer lead items required for the drilling of Zion’s planned second well, the Ma’anit-Rehoboth #2, are being placed.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel on its Ma'anit-Joseph License and Asher Permit areas located onshore between Tel Aviv and Haifa. The net proceeds of Zion's offering will mainly be used for a completion attempt on the Ma'anit #1 exploratory well drilled by Zion in 2005 to a total depth of 15,842 feet and to drill an appraisal and deep test well, the Ma’anit-Rehoboth #2, on its license. In the event of a commercial discovery, following recovery of certain exploratory costs, Zion intends to donate 6% of its gross revenues from the license to two charitable trusts to be established by Zion, one in Israel and one in the U.S. The common stock of Zion is traded on the American Stock Exchange under the ticker symbol ‘ZN’.

FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including Zion's planned operations, potential results thereof and plans contingent thereon, 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 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 home page may be found at: www.zionoil.com.