October 01, 2006

Exploring for oil in Israel

Zion Oil &Gas, Inc. http://www.zionoil.com/ announced today that its initial public offering has opened. Zion intends to use the funds raised to continue its efforts to explore for oil and gas in Israel. Zion holds petroleum exploration rights onshore Israel on about 219,000 acres located between TelAviv and Haifa, in areas which in Biblical times were in the territories of the Tribes of Manasseh and Asher.

Zion drilled its initial well, known as the Ma'anit #1, to a depth of15,842 feet. This exploratory well stands waiting for additional completion activity. The Company also intends to drill a second, appraisal well on a nearby location. If funding is available, the Company plans to drill this well to targets even deeper than the Triassic age targets drilled by the Ma'anit #1.

Zion's ability to drill this second well will depend on the Company's success inplacing the maximum number of shares available in its current offering. Zion Oil & Gas is offering shares of common stock to the public at a price of $7.00 per share and the offering is being placed through Network Financial Securities, Inc.

The offering requires the sale of aminimum of 350,000 shares. A maximum of 2,000,000 shares are available. If Zion is successful in its exploration efforts and following recoupment of certain exploratory costs, Zion intends to donate 6% of its gross revenues to two charitable trusts, one to be established by Zion in Israel and one in the United States. Zion has been conditionally approved for listing on the American Stock Exchange subject to a timely completion of the minimum offering. The tickersymbol will be ZN.