Zion Oil & Gas has filed a registration statement with the Securities and Exchange Commission with respect to a proposed rights offering to its common stockholders of up to two (2) million shares of common stock. Each whole subscription right will entitle the holder to purchase one share of common stock for $5.00.

Under the proposed rights offering, stockholders have the right to purchase thirteen (13) shares of stock for every one hundred (100) shares of common stock owned on the record date. This is identical to 0.13 subscription rights for each share of common stock owned on the record date.

Should the rights offering be fully subscribed, the company expects to receive gross proceeds of $10 million. The proceeds from the rights offering will be used for Zion’s multi-well drilling plan.

Stockholders who fully exercise their rights will be entitled to subscribe for additional shares of common stock, if available, that were not subscribed for by other rights holders.

The record, commencement and initial expiration dates for the offering will be determined at the time that the registration statement relating to the rights offering becomes effective.

A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

Zion's Chief Executive Officer, Richard Rinberg, said today: "Although it is not usual to engage in a rights offering immediately following a rights offering, Zion's Board of Directors have decided to do exactly that.

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