Filed
pursuant to Rule 433
Registration
Statement No. 333-148982
The
press
release below is being used on the Zion Website:
http://www.zionoil.com/press-releases/index.html
ZION
OIL & GAS
SIGNS
DRILLING CONTRACT
_____________________________
Caesarea,
Israel - September 15, 2008
- Zion
Oil & Gas, Inc. (Amex: ZN)
of
Dallas, Texas and Caesarea, Israel announced today that it and Aladdin Middle
East ("AME") have signed a drilling contract. Last week, Zion's Chief Executive
Officer, Richard Rinberg, and the President and Chief Operating Officer of
Zion,
Glen Perry, visited AME's offices in Ankara, Turkey, in order to inspect AME’s
rig and equipment yard, meet with key AME personnel and finalize the terms
of
the drilling contract.
The
contract was executed by both parties on September 12, 2008. Under the terms
of
the contract AME has committed to provide a completely refurbished and updated
2,000 horsepower rig and crews (anticipated to arrive in Israel in November
2008) and to drill Zion's planned Ma'anit-Rehoboth #2 well 'directionally'
to
below 18,000 feet. The well is planned to appraise the strong shows seen in
the
Triassic (during the drilling of the Ma’anit #1 well) and to drill deeper into
the Permian formation. It will be the first well drilled to the Permian in
Northern Israel. The
commencement of the drilling program is subject to receipt of various government
permits and raising additional capital, whether through Zion's current public
offering or otherwise.
Richard
Rinberg, Zion's Chief Executive Officer, said today, “This
is
an important milestone for Zion, one which we have been working towards for
a
long time. We are very impressed by the quality of AME’s rig and the
professionalism of their people. We appreciate the hospitality shown to us
by
AME during our visit and are excited about working with AME and drilling our
next wells, just as soon as we can.”
Additional
information relating to the drilling contract and related matters will be
included in Zion’s Current Report on Form 8-K, that Zion will be filing soon
with the Securities and Exchange Commission.
Zion
Oil
& Gas, a Delaware corporation, explores for oil and gas in Israel in areas
located onshore between Tel-Aviv and Haifa. It currently holds two petroleum
exploration licenses, the Joseph and Asher-Menashe Licenses, between Netanya
on
the south and Haifa on the north covering a total of approximately 162,000
acres.
AME
is an
independent oil and gas exploration and production company, incorporated in
Delaware in 1962, with its head office in Wichita, Kansas. AME has drilled
more
than 130 exploration and development wells in Turkey for major oil companies,
including Exxon, Mobil, Wintershall AG, MOL, Placid Oil, Neste Oy, Terralliance
(USA), JKX (UK) and TETHYS (Sweden). Its rig inventory includes 11 drilling
and
workover rigs and AME's personnel have enormous work experience in many
countries, including Turkey, Bulgaria, Azerbaijan, Kazakhstan, Turkmenistan
and
Georgia.
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LOOKING STATEMENTS: Statements in this
press release that are not historical fact, including statements
relating
to Zion’s entry into a drilling contract with AME and the terms thereof
and the importation of a rig and crews into Israel to drill Zion’s planned
wells, the public offering, the timing of any closing and the results
thereof 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 filings
with the
Securities and Exchange Commission, including the prospectus filed
in
connection with Zion's current public offering, 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.
Accordingly, Zion can give no assurance that the expectations reflected
in
these statements will prove to be correct. Zion assumes no responsibility
to update these statements.
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Zion
Oil
& Gas, Inc. has filed a registration statement (including a prospectus) with
the SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
Zion Oil & Gas and its offering. You may get these documents for free by
visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, Zion Oil & Gas or its underwriter will arrange to send you
the prospectus if you request it by calling toll free 1-888-TX1-ZION
(1-888-891-9466). Direct links to the SEC location, or to the documents in
PDF,
may be found on the home page of Zion Oil & Gas. Inc., at www.zionoil.com.
Contact:
Ashley
Chatman
Zion
Oil
& Gas, Inc.
6510
Abrams Rd., Suite 300
Dallas,
TX 75231
(1)
214-221-4610
Email:
dallas@zionoil.com