Zion Oil & Gas Applies for Asher-Menasseh Exploration License.

DALLAS -- Eugene A. Soltero, Chief Executive Officer of Zion Oil & Gas, Inc. (Amex:ZN), of Dallas, Texas and Caesarea, Israel, announced today that Zion filed an application on January 31, 2007 with the Israeli Petroleum Commissioner for a petroleum exploration license, tentatively denominated the Asher-Menasseh License, on approximately 81,000 acres north of Zion's 99,000 acre Ma'anit-Joseph License. The acreage subject to application includes primarily acreage which was subject to Zion's Asher Preliminary Permit as reduced in accordance with the provisions of the Israeli Petroleum Law, together with a small addition of acreage abutting to the north of the lands subject to the Asher Permit.

The application was submitted in accordance with the terms of Zion's Asher Permit, together with Zion's Final Report and Prospect Identification, upon the termination of the Asher Permit on January 31. In the context of the application, Zion proposed a work program to include the acquisition of 20 kilometers of new seismic data in the Ramot Menasseh (Manasseh Heights) region and the drilling of a test well, tentatively designated the Menasseh #1, to the Triassic formation.

Zion's application is subject to the review and approval of the Israel Petroleum Commissioner, in consultation with the statutory Petroleum Council. Zion does not know when the Commissioner and Council will consider the application or what the results of such consideration will be.

The accompanying map is of the lands subject of the license application in relation to the acreage subject to the Asher Permit and Zion's Ma'anit-Joseph License.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel on its Ma'anit-Joseph License and Asher Permit areas located onshore between Tel Aviv and Haifa. In 2005, Zion drilled an exploratory well on its Ma'anit-Joseph License to a total depth of 15,842 feet. It is currently preparing for workover and completion activities on that well, which activities are scheduled to commence in March 2007, and is preparing to drill an appraisal well on that License. In the event of a commercial discovery, following recovery of certain exploratory costs, Zion intends to donate 6% of its gross revenues from its Israeli petroleum rights to two charitable trusts to be established by Zion, one in Israel and one in the U.S.

FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding applications made by Zion and possible results thereof, Zion's planned operations, potential results thereof and plans contingent thereon, are forward-looking statements as defined in the "Safe Harbor" provision 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 prospectus 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.