ZN Zion Oil and Gas Inc

Zion Oil and Gas, Inc., a Delaware corporation, which has an active petroleum exploration license onshore Israel on their 99,000-acre Megiddo-Jezreel license area, announces the following completion of testing.

Upon conclusion of the latest testing and completion procedures on our MJ-2 well, and after a thorough analysis of the results by Zion and third-party experts, on December 7, 2022, Zion determined that the well will not currently produce hydrocarbons in commercial quantities.

Although logs strongly indicate the presence of hydrocarbons, we have determined the zone does not have sufficient permeability to be productive.  We will set a temporary plug in the wellbore to preserve its integrity and the opportunity to make future use of it, should circumstances and technological innovations warrant that.

Based on what we learned about the characteristics of this deep Mohilla zone in the MJ-2 well, we are aggressively re-analyzing our logs and other data from the MJ-1 well, which was drilled on the same pad site. Knowing this zone is structurally higher than the equivalent zone in MJ-2, we are diligently evaluating whether this zone was adequately tested in the MJ-1 well.

Once we have completed that analysis, we may re-enter the MJ-1 wellbore, which is cased to the bottom, and attempt a re-completion in the Mohilla zones.

We will continue to explore the Megiddo-Jezreel license, as we are confident that we are in an active petroleum system. We will provide material updates, when we have relevant information to share with the public.