Zion Files FY08 Results, Receives 'Going Concern' Qualification in Audit

Zion Oil & Gas filed on March 31, 2009, its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The Company reported a net loss of $(4,018) thousand or $(0.39) per share for the 2008 year compared to a net loss of $(13,047) thousand or $(1.34) per share for the prior year. The Company had no revenues, as it is still an exploration stage company.

As in prior years, the audit opinion from the Company's independent registered accounting firm, Somekh Chaikin (a Member of KPMG International), included in the Company’s Annual Report on Form 10-K a 'going concern' qualification.

Upon release of the 2008 annual results, Zion’s Chief Executive Officer, Richard J. Rinberg, commented, "During 2008, Zion’s staff were extremely busy and successful in advancing Zion's business. We completed a comprehensive geophysical survey on our license area and announced the results of our seismic acquisition program. We signed a drilling contract with drilling contractor Aladdin Middle East Ltd to drill Zion's wells in Israel, purchased drill pipe and prepared for the drilling of our Ma'anit-Rehoboth #2 well in 2009. Zion also held a successful follow-on offering. In addition, the two charitable foundations that Zion established held their initial meetings of founding members."