Zion O&G Extends Subscription Period for Rights Offering

Zion O&G has extended the expiration date for its pending rights offering to December 15, 2010.

The original scheduled expiration date of the rights offering was November 15, 2010. By that date Zion stockholders had subscribed to purchase approximately 3,192,000 Units of Zion's securities from the approximately 3,800,000 Units available under the offering.

As the rights offering was not fully subscribed by November 15, 2010, and the Company was advised that some qualified holders of its common stock wished to make a further subscription, the Company decided to extend the duration of the offering by three days to November 18, 2010.

During the three day extension, a number of qualified holders contacted the Company commenting that their brokerage house had either not notified them of the Company's rights offering and/or not forwarded rights offering documentation to them in a timely manner.

In order to allow all qualified holders to exercise their right to subscribe, the Company has decided to further extend the duration of the offering. The rights may now be exercised at any time prior to 5:00 p.m. Eastern Standard time on December 15, 2010, the new scheduled expiration of the offer.

Zion's Chief Executive Officer, Richard Rinberg, said, "In order to be fair to all and allow every qualifying stockholder, whatever the size of their holding, the chance to exercise their rights, we decided to extend the rights offering.

The drilling of our current exploration well, the Ma'anit-Joseph # 3 well, has reached a depth of approximately 9,022 feet (2,750 meters) towards the secondary target, Triassic age lithology, expected below approximately 10,827 feet (3,300 meters). We then plan to continue drilling to the primary target, Permian age lithology, down to a planned total depth below approximately 19,357 feet (5,900 meters).

We remain excited about the possibility of recovering hydrocarbons on our license and permit areas, onshore Israel, especially due to the U.S. Geological Survey 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."

Under the terms of the rights offering, the Company distributed at no charge to the holders of its common stock as of September 28, 2010, non-transferable subscription rights to purchase their pro rata portion of approximately 3,800,000 Units of Zion's securities. Each Unit consists 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 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 entitles 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.