Zion O&G Reaches TD at Israel Well

Zion O&G has reached its target depth of approximately 19,357 feet (5,900 meters) in drilling its Ma'anit-Joseph #3 well into the Permian geologic layer in Northern Israel. The Company is now preparing for open-hole logging operations, planned to commence this week.

Zion also announced that its shares of Common Stock were added to the preliminary list of both the Russell Global Index and the U.S. broad-market Russell 3000(R) on June 10, 2011. Russell Investments will publish the final inclusion lists of its indexes on June 27, 2011.

Zion's inclusion is part of the Russell's regular reconstitution of its U.S. equity indices each year. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading US $3.9 trillion in institutional assets currently are benchmarked to them.