Zion Oil & Gas to be Granted Joseph Exploration License in Israel

Zion Oil & Gas was notified by the Israeli Petroleum Commissioner's office that, on September 25, 2007, the Israeli Petroleum Commission recommended to the Commissioner that the company's application for a petroleum exploration license, the Joseph License, be granted as submitted. The Commissioner's office told representatives of Zion that, subject to the Commissioner's final decision, the license would be granted after the Sukkot holidays in Israel, probably during the second week of October.

Zion submitted its application for the Joseph License on June 26, 2007, following the relinquishment of the company's Ma'anit-Joseph License at the end of its term. The Joseph License application covered approximately 85,000 acres on-shore between Caesarea and Netanya, immediately south of Zion's 78,000 acre Asher-Menashe License. The acreage comprises approximately 85% of the lands previously held by Zion under the Ma'anit-Joseph License and includes both the Ma'anit structure, on which the company drilled the Ma'anit #1 well to a total depth of 15,842 feet and plans to drill the Ma'anit-Rehoboth #2 well to Triassic and Permian targets, and the Joseph prospect located south of Ma'anit. The primary term of the Joseph License will be three years from its grant, extendable to a maximum of seven years.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv.