Fall 2014

ZION OIL & GAS, INC. (NASDAQ SYMBOL: ZN)

DEDICATED TO EXPLORING FOR OIL & GAS, ONSHORE ISRAEL

Israel is known as the land “flowing

with milk and honey” but not
necessarily flowing with “oil and
gas.” In fact, Israel’s former Prime
Minister Golda Meir is said to have
complained that Moses could have
picked somewhere other than “the
one spot in the Middle East that has
no oil” as a Jewish homeland.

Indeed, there has been a seismic shift

in thinking in the last few years. In
2009 and 2010, world-class natural
gas discoveries were announced,
approximately 50-80 miles west of
Haifa, offshore Israel. Noble Energy’s
Tamar and Leviathan discoveries have
since been followed up by additional
large natural gas finds.

Immediately after the announcement,

Israel’s Minister of Infrastructure
said, “We are witnessing a historic
moment in Israel’s energy market...
we are talking about the biggest find
in Israel’s history.”

The Leviathan discovery is the largest

discovery in Noble Energy’s history. To date, total discovered gross mean resources in the Levant Basin (offshore) are now
estimated to be approximately 40 trillion cubic feet of natural gas. Noble Energy recently stated that “significant exploration
potential remains on the Company’s acreage position in the Eastern Mediterranean, with approximately 3 billion barrels of
gross unrisked oil potential in the deep Mesozoic play in both Cyprus and Israel…”

In April 2010, the United States Geological Survey (USGS) issued a report on the Levant Basin and indicated that there are
still massive undiscovered amounts of oil and gas in the Levant Basin. Zion’s petroleum exploration areas fall completely
within the Levant Basin.

Following, you will find a copy of the USGS report. The USGS estimates a mean of 1.7 billion barrels of recoverable oil and
122 trillion cubic feet of recoverable gas in the Levant Basin.
Three of the seven references cited in the USGS report were co-authored by Zion Oil & Gas Board member (and co-chairman
of Zion’s Technical Advisory Group) Dr. Yehezkel Druckman. Dr. Druckman is also a former Petroleum Commissioner of
Israel.

We are very excited about and 100% focused on our new Megiddo-Jezreel License. In December 2013, Israel’s Petroleum
Commissioner officially granted us the exclusive right to explore in an area of approximately 99,000 acres between the
ancient city of Megiddo and the Jordan River. This new license has a primary term through December 2016 but we hope to
drill our next deep well, the Megiddo - Jezreel #1, in 2015.

Zion Oil and Gas, Inc. was founded in 2000 and is publicly traded on the NASDAQ Global Market (Stock Symbol: ZN). Since
our founding, we have worked diligently to assemble an experienced and professional team using petroleum industry best-
practice techniques in order to discover oil and gas onshore Israel.

We are optimistic that the day draws near when we will achieve exploration success and our many years of hard work will
bear fruit for our stockholders and for Israel.

For further information please visit our website: www.zionoil.com

Your support is vital to Zion’s work in Israel.

“In your good pleasure, make Zion prosper...”

Psalm 51:18

FORWARD LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding
Zion’s planned operations, plans to achieve certain milestones, the existence of commercially productive oil and natural gas reserves,
and plans for future drilling, are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown
risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are
beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-
looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes
no responsibility to update these statements.
World Petroleum Resources Project

Assessment of Undiscovered Oil and Gas Resources of the

Levant Basin Province, Eastern Mediterranean

Introduction 30°E 31°E 32°E 33°E 34°E 35°E 36°E

As part of a program TURKEY

aimed at estimating the recov-
erable oil and gas resources
of priority basins around the 36°N

world, the U.S. Geological

Survey (USGS) estimated
the undiscovered oil and
gas resources of the Levant 35°N t
Basin Province. The Levant
CYPRUS ul
Fa
Basin Province encompasses Tartu s
approximately 83,000 square
kilometers (km2) of the eastern Mediterranean Sea LEBANON
Levant Sub-Salt
ou nes

34°N
Mediterranean area (fig. 1). Reservoirs

one
am he
nt

The area is bounded to the east

Se tost

Assessment Unit

Levant Transform Z
by the Levant Transform Zone,
a
Er

to the north by the Tartus Fault Plio-Pleistocene SYRIA

(Roberts and Peace, 2007), to 33°N Reservoirs
Ni
the northwest by the Eratosthe- l Assessment Unit
eD

nes Seamount, to the west and

A
elt

southwest by the Nile Delta

a

ITALY
Cone Province boundary, and
Con

GREECE TURKEY
32°N
to the south by the limit of Levant
e

compressional structures in Mediterranean Sea Margin

the Sinai. This assessment was A’ Reservoirs
based on published geologic SAUDI Assessment
31°N LIBYA Red ARABIA
information and on com-
EGYPT Sea Unit
mercial data from oil and gas ISRAEL Limit of
wells, fields, and field produc- EXPLANATION compressional
tion. The USGS approach is Gas fields structures
Oil fields
to define petroleum systems 30°N

and geologic assessment units EGYPT

JORDAN
and to assess the potential
0 50 100 KILOMETERS
Red
for undiscovered oil and gas 0 50 100 MILES Sea
resources in each of the three 29°N
assessment units defined for
this study—Plio-Pleistocene
Reservoirs, Levant Sub-Salt Figure 1. Location of the three assessment units (AU) in the Levant Basin Province in the Eastern 
Reservoirs, and Levant Margin Mediterranean. The boundaries of the Levant Sub-Salt AU and the Plio-Pleistocene Reservoirs AU  
Reservoirs. are coincident.

U.S. Department of the Interior Fact Sheet 2010–3014

Printed on recycled paper
U.S. Geological Survey March 2010
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A A’
Levant Basin Levant Margin
NW SE
Sea level

Plio-Pleistocene Reservoirs Assessment Unit

2
F M Horizon
Two-Way Time (seconds)

E N Horizon Jordan
4 Levant Margin rift
D Reservoirs valley
Assessment Unit Levant
C Levant Sub-Salt Reservoirs AU
Transform
6 zone

8
A
Basement

10

0 50 KILOMETERS

0 100 MILES

Figure 2. Geologic cross section of the southern part of the Levant Basin Province illustrating the definition of the three assessment units
(AU) in this study. The areas of the Levant Sub-Salt Reservoirs AU and the Plio-Pleistocene Reservoirs AU are coincident, and neither AU
overlaps with the Levant Margin Reservoirs AU. Dashed line separates Cenozoic (above) from pre-Cenozoic rocks. Messinian-age salt
(between the M and N seismic horizons) is shown in green. Location of schematic section (A-A’) shown in figure 1. A, Permian to Aalenian
age; B, Bajocian to Turonian age; C, Senonian to Early Oligocene age; D, Oligocene to Late Miocene Age; E, Late Miocene (Messinian) age;
F, Plio-Pleistocene age rocks. Modified from Gardosh and Druckman (2006) and Cartwright and Jackson (2008).
Eocene nearshore marine sandstones and limestones, Wadi Degla, northern Egypt.

Table 1. Levant Basin Province assessment results.

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Total Petroleum Largest Total undiscovered resources

Systems (TPS) and Field expected Oil Gas NGL
Assessment Units type mean (MMBO) (BCFG) (MMBNGL)
(AU) field size F95 F50 F5 Mean F95 F50 F5 Mean F95 F50 F5 Mean
Levant Basin Province, Mesozoic-Cenozoic Composite TPS
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