Zion Oil & Gas Starts Drilling the Ma'anit-Joseph #3 Well in Its Joseph License Area, Onshore Northern Israel

Friday, Aug 27, 2010

Zion Oil & Gas, Inc. (Nasdaq:ZN) announced today that drilling operations
have begun on its Ma'anit-Joseph #3 well, in its Joseph License area,
onshore Northern Israel. The drilling operations are expected to last
approximately six months.

Utilizing the 2,000 horsepower drilling rig used to drill Zion's previous
wells, Zion has commenced drilling its Ma'anit-Joseph #3 well, initially
towards its secondary target, Triassic age lithology, expected below
approximately 10,827 feet (3,300 meters). Zion then plans to continue
drilling to its primary target, Permian age lithology, down to a planned
total depth below approximately 19,357 feet (5,900 meters).

The rig will operate on a 24-hour basis utilizing two drilling crews on
12-hour shifts. On a continual basis, samples will be collected by Zion's
wellsite geologists, analyzed for both hydrocarbon content and lithology and
then stored.

Zion's Chief Executive Officer, Richard Rinberg, said today, "We are excited
to be drilling the Ma'anit-Joseph #3 well and continue to be optimistic
about the possibility of recovering hydrocarbons on our license and permit
areas, onshore Israel, especially due to the U.S.
Geological Survey report, published in April 2010, containing their
assessment that there may be 1.7 billion barrels of recoverable oil and
122 trillion cubic feet of recoverable gas in the Levant Basin, as all of
Zion's exploration rights fall within the area of the Levant Basin."

For regular updates on the drilling activity, please visit Zion's website
at: www.zionoil.com

Source: Globe Newswire