Zion Oil Announces Results of First Tested Formation in the Ma'anit #1 Well Workover

CAESAREA, Israel--(BUSINESS WIRE)--Zion Oil & Gas, Inc. (Amex: ZN) of Dallas, Texas and Caesarea, Israel, announced today that its geological and engineering team have completed its analysis of the test results of the first of four zones in the upper Triassic which had been identified as potentially productive and selected for testing during the remedial workover and completion operations on the Company’s Ma’anit #1 well. The results of the tests indicated that the tested zone is non-productive. Based on this result, it was determined to re-evaluate the well’s future, considering the well’s mechanical condition and the presence of positive indications of hydrocarbons deeper in the Triassic and closer to the determined hydrocarbon source rock. The Company's technical team is currently evaluating the findings, in order to optimize operations on the next well, the Ma’anit-Rehoboth #2, so that the difficulties encountered in the Ma’anit #1 wildcat well will be avoided and the next well’s full potential exploited. The team is preparing recommendations for the company's consideration. When the Company reaches a decision on these matters, an announcement will be made.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel, onshore between Tel Aviv and Haifa. In 2005, Zion drilled an exploratory well on its 98,100 acre Ma’anit-Joseph License to a total depth of 15,842 feet. It is currently analyzing the results of certain testing activities on that well and on its preparations to drill an appraisal and deep test well, the Ma'anit-Rehoboth #2.

On June 10, 2007 Zion was granted a second petroleum exploration license designated the Asher-Menashe License, on approximately 78,800 acres north of its Ma'anit-Joseph License.

In the event of a commercial discovery, following recovery of certain exploratory costs, Zion intends to donate 6% of its gross revenues from its Israeli petroleum rights to two charitable trusts to be established by Zion, one in Israel and one in the U.S.

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding the effect of the results of Zion's operations on future operations, the potential results of such future operations 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, 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 home page may be found at: www.zionoil.com