DALLAS and CAESAREA, Israel, Aug. 9, 2010 (GLOBE NEWSWIRE) -- Zion Oil & Gas, Inc. (Nasdaq:ZN) reported today its results for the quarter ended June 30, 2010. The company reported a net loss of $23,526,000 or $(1.25) per share for the second quarter of 2010 compared to a net loss of $1,332,000 or $(0.11) per share for the same quarter a year earlier. The increase in net loss is primarily attributable to the impairment charge of $22,022,000 recorded during the second quarter of 2010 in respect of the Ma'anit-Rehoboth #2 well. The company has no revenues as it is still an exploration stage company .

On release of the second quarter results, Zion's Chief Executive Officer, Richard Rinberg, commented:

"During the second quarter, Zion made good progress in a number of areas. In Israel, construction and preparation began on the drill site for our next well on the Ma'anit structure. As of today, we remain on track to "spud" (begin drilling) the Ma'anit-Joseph #3 well by August 19, 2010. In Dallas, our staff successfully completed a Rights Offering, raising gross proceeds of approximately $12.4 million which we intend to use to further our exploration and drilling program.

"We remain excited 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."  

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres and the Issachar-Zebulun Permit Area, adjacent to and to the east of Zion's Asher-Menashe license area, covering approximately 165,000 acres. Zion's total petroleum exploration rights area is approximately 327,000 acres.

The Zion Oil & Gas, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6850

The Company's financial statement information is summarized below:

(US$ in thousands, except for per share income)
STATEMENT OF OPERATIONS Three months ended
  June 30 June 30
  2010 2009
     
Revenues -- --
Loss from operations 23,444 1,347
Net Income (loss) (23,526) (1,332)
Net loss per common share – basic and diluted (1.25) (0.11)
Weighted avg. shares issued and outstanding – basic and diluted 18,749 12,251
   
CASH FLOW DATA Six months ended
  June 30 June 30
  2010 2009
     
Net cash (used in) operating activities (3,403) (1,818)
Net cash (used in) investing activities (12,784) (4,606)
Net cash provided by financing activities 5,032 23,373
     
BALANCE SHEET DATA June 30, 2010 December 31, 2009
     
Current Assets 10,961 22,342
Total Assets 25,607 46,225
Total Liabilities 1,560 2,786
Total Stockholders' Equity 24,047 43,439

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons and spud dates 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 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.

Zion's homepage may be found at: www.zionoil.com

CONTACT: Zion Oil & Gas, Inc.         Mike Williams         214-221-4610         dallas@zionoil.com         6510 Abrams Rd., Suite 300         Dallas, TX 75231

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