Zion Oil & Gas and Aladdin Middle East Intend to Sign Drilling Contract in September 2008

CAESAREA, Israel--(BUSINESS WIRE)--Zion Oil & Gas, Inc. (Amex: ZN) of Dallas, Texas and Caesarea, Israel announced today that it and Aladdin Middle East ("AME") intend to enter into a drilling contract by September 12, 2008. The Chief Executive Officer, Richard Rinberg, and the President and Chief Operating Officer of Zion, Glen Perry, are scheduled to visit AME's offices in Ankara, Turkey, in order to sign a drilling contract with AME. It is now anticipated that the 2,000 horsepower rig, to be used to drill Zion's planned Ma'anit-Rehoboth #2 well, will arrive in Israel in November 2008.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Tel-Aviv and Haifa. It currently holds two petroleum exploration licenses, the Joseph and Asher-Menashe Licenses, between Netanya on the south and Haifa on the north covering a total of approximately 162,000 acres.

AME is an independent oil and gas exploration and production company, incorporated in Delaware in 1962, with its head office in Wichita, Kansas. AME has drilled more than 130 exploration and development wells in Turkey and Egypt for major oil companies, including Exxon, Mobil, Wintershall AG, MOL, Placid Oil, Neste Oy, Burren Energy Inc. and Edison International spa. Its rig inventory includes 11 drilling and workover rigs.

FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements relating to Zion’s entry into a drilling contract with AME and the terms thereof and the importation of a rig and crews into Israel to drill Zion’s planned wells, 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 the Prospectus 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. Accordingly, Zion can give no assurance that the expectations reflected in these statements will prove to be correct. Zion assumes no responsibility to update these statements.