# EDGAR Filing Document

**Accession Number:** 0001131312
**File Stem:** 0001437749-25-034113
**Filing Date:** 2025-11
**Character Count:** 186535
**Document Hash:** 2ce8de640c91ec3cfdf1c0c5c59e7ce8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-034113.hdr.sgml**: 20251110

**ACCESSION NUMBER**: 0001437749-25-034113

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 55

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251110

**DATE AS OF CHANGE**: 20251110

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ZION OIL & GAS INC
- **CENTRAL INDEX KEY:** 0001131312
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL AND GAS FIELD EXPLORATION SERVICES [1382]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 200065053
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33228
- **FILM NUMBER:** 251466768

**BUSINESS ADDRESS:**
- **STREET 1:** 12655 NORTH CENTRAL EXPRESSWAY
- **STREET 2:** SUITE 1000
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75243
- **BUSINESS PHONE:** 2142214610

**MAIL ADDRESS:**
- **STREET 1:** 12655 NORTH CENTRAL EXPRESSWAY
- **STREET 2:** SUITE 1000
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75243

?xml version='1.0' encoding='ASCII'? znog20250930_10q.htm

[**Table of Contents**](#toc)

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

**MARK ONE**

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the Quarterly Period ended September 30, 2025;

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the transition period from ________ to ________

**ZION OIL & GAS, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Texas** | **20-0065053** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |
| **12655 N Central Expressway, Suite 1000, Dallas, TX** | **75243** |
| (Address of principal executive offices) | Zip Code |

---

**(214) 221-4610**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| N/A | N/A | N/A |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2025, Zion Oil & Gas, Inc. had outstanding 1,142,454,656 shares of common stock, par value $0.01 per share.

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[**Table of Contents**](#toc)

**INDEX PAGE**

---

| | |
|:---|:---|
|  | **Page** |
| **PART I** — **FINANCIAL INFORMATION** | **PART I** — **FINANCIAL INFORMATION** |
| Item 1 – Financial Statements – Unaudited |  |
| [<u>Consolidated Condensed Balance Sheets</u> <u>–</u> <u>September 30, 2025 and December 31, 2024</u>](#bs) | [1](#bs) |
| [<u>Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2025 and 2024</u>](#ops) | [2](#ops) |
| [<u>Consolidated Condensed Statement of Changes in Stockholders</u><u>'</u> <u>Equity for the</u> <u>three and nine months ended</u> <u>September 30, 2025 and 2024</u>](#se) | [3](#se) |
| [<u>Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2025 and 2024</u>](#cf) | [5](#cf) |
| [<u>Notes to Consolidated Condensed Financial Statements</u>](#notes) | [7](#notes) |
| [<u>Item 2</u> <u>–</u> <u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | [35](#mda) |
| [<u>Item 3</u> <u>–</u> <u>Quantitative and Qualitative Disclosures About Market Risk</u>](#quant) | [44](#quant) |
| [<u>Item 4</u> <u>–</u> <u>Controls and Procedures</u>](#controls) | [44](#controls) |
| [**<u>PART II</u>** <u>—</u> **<u>OTHER INFORMATION</u>**](#part2) | [**<u>PART II</u>** <u>—</u> **<u>OTHER INFORMATION</u>**](#part2) |
| [<u>Item 1</u> <u>–</u> <u>Legal Proceedings</u>](#legal) | [45](#legal) |
| [<u>Item 1A</u> <u>–</u> <u>Risk Factors</u>](#risk) | [45](#risk) |
| [<u>Item 2</u> <u>–</u> <u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#unregistered) | [45](#unregistered) |
| [<u>Item 3</u> <u>–</u> <u>Defaults upon Senior Securities</u>](#defaults) | [45](#defaults) |
| [<u>Item 4</u> <u>–</u> <u>Mine Safety Disclosures</u>](#mine) | [45](#mine) |
| [<u>Item 5</u> <u>–</u> <u>Other Information</u>](#otherinfo) | [45](#otherinfo) |
| [<u>Item 6</u> <u>–</u> <u>Exhibits</u>](#exhibits) | [46](#exhibits) |
| [<u>Exhibit Index</u>](#exindex) | [46](#exindex) |
| [<u>SIGNATURES</u>](#sigs) | [47](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i

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**Zion Oil & Gas, Inc.**

**Consolidated Condensed Balance Sheets as of**

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** |
|  | **(unaudited)** |  |
| **Current assets** |  |  |
| Cash and cash equivalents | **10373** | 2272 |
| Cash and cash equivalents – restricted | **1084** | 1064 |
| Prepaid expenses and other | **476** | 567 |
| Governmental receivables | **17** | 19 |
| Loan due from related party (see note 2G) | **15** |  |
| Other receivables | **9** | 8 |
| **Total current assets** | **11974** | 3930 |
| **Unproved oil and gas properties, full cost method (see Note 4)** | **26967** | 21682 |
| **Property and equipment at cost** |  |  |
| Drilling rig and related equipment, net of accumulated depreciation of $3,344 and $2,807 (see note 2I) | **4363** | 4778 |
| Property and equipment, net of accumulated depreciation of $736 and $714 | **92** | 104 |
|  | **4455** | 4882 |
| **Right of Use Lease Assets (see Note 5)** | **680** | 759 |
| **Other assets** |  |  |
| Assets held for severance benefits | **622** | 541 |
| **Total other assets** | **622** | 541 |
| **Total assets** | **44698** | 31794 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | **569** | 604 |
| Insurance financing (see note 6D) | **44** | 490 |
| Lease obligation – current (see Note 5) | **124** | 107 |
| Asset retirement obligation | **571** | 571 |
| Accrued liabilities | **479** | 456 |
| **Total current liabilities** | **1787** | 2228 |
| **Long-term liabilities** |  |  |
| Lease obligation – non-current (see Note 5) | **612** | 637 |
| Provision for severance pay | **631** | 548 |
| **Total long-term liabilities** | **1243** | 1185 |
| **Total liabilities** | **3030** | 3413 |
| **Commitments and contingencies (see Note 6)** |  |  |
| **Stockholders' equity** |  |  |
| **Common stock, par value $.01; Authorized: 1,600,000,000 shares at September 30, 2025: Issued and outstanding: 1,139,174,293 and 965,362,131 shares at September 30, 2025 and December 31, 2024, respectively** | **11392** | 9654 |
| Additional paid-in capital | **329842** | 312629 |
| Stock subscription receivable | **(359)** |  |
| Accumulated deficit | **(299207)** | (293902) |
| **Total stockholders' equity** | **41668** | 28381 |
| **Total liabilities and stockholders' equity** | **44698** | 31794 |

---

The accompanying notes are an integral part of the unaudited interim consolidated condensed financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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[**Table of Contents**](#toc)

**Zion Oil & Gas, Inc.**

C**onsolidated Condensed Statements of Operations (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the three months ended*** | ***For the three months ended*** | ***For the nine months ended*** | ***For the nine months ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| General and administrative | **1117** | 1143 | **3319** | 3519 |
| Other | **576** | 632 | **2070** | 2113 |
| Loss from operations | **(1693)** | (1775) | **(5389**) | (5632) |
| **Other income (expense), net** |  |  |  |  |
| Foreign exchange (expenses), income | **(83**) | (20) | **(42**) | 11 |
| Financial income, net | **57** | 4 | **126** | 4 |
| Loss, before income taxes | **(1719)** | (1791) | **(5305**) | (5617) |
| Income taxes | **-** |  | **-** |  |
| Net loss | **(1719)** | (1791) | **(5305**) | (5617) |
| **Net loss per share of common stock** |  |  |  |  |
| **Basic and diluted (in US$)** | **(0.00)** | (0.00) | **(0.00**) | (0.01) |
| **Weighted-average shares outstanding** |  |  |  |  |
| **Basic and diluted (in thousands)** | **1116590** | 843211 | **1061263** | 752241 |

---

The accompanying notes are an integral part of the unaudited interim consolidated condensed financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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**Zion Oil & Gas, Inc.**

**Consolidated Condensed Statement of Changes in Stockholders**' **Equity (Unaudited)**

**For the three and nine months ended September 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  |  |  |
|  | ***Common Stock*** | ***Common Stock*** | ***paid-in*** | ***Subscription*** | ***Accumulated*** |  |
|  | ***Shares*** | ***Amounts*** | ***Capital*** | ***Receivable*** | ***deficit*** | ***Total*** |
|  |  | ***US$*** | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| Balances as of June 30, 2025 | **1109567** | **11096** | **325165** | **(179)** | **(297488)** | **38594** |
| Funds received from sale of DSPP units and shares and exercise of warrants | **28622** | **286** | **4529** | **(24)** |  | **4791** |
| Funds received from option exercises | **985** | ***10*** | **146** | **(156)** |  | **—** |
| Value of options granted to employees, directors and others as non-cash compensation | *—* |  | **2** |  |  | **2** |
| Net loss | *—* |  |  |  | **(1719)** | **(1719)** |
| Balances as of September 30, 2025 | **1139174** | **11392** | **329842** | **(359)** | **(299207)** | **41668** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  |  |  |
|  | ***Common Stock*** | ***Common Stock*** | ***paid-in*** | ***Subscription*** | ***Accumulated*** |  |
|  | ***Shares*** | ***Amounts*** | ***Capital*** | ***Receivables*** | ***deficit*** | ***Total*** |
|  |  | ***US$*** | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| Balance at December 31, 2024 | **965362** | **9654** | **312629** |  | **(293902)** | **28381** |
| Funds received from sale of DSPP units and shares and exercise of warrants | **172809** | **1728** | **17046** | **(203)** |  | **18571** |
| Funds received from option exercises | **1003** | ***10*** | **147** | **(156)** |  | **1** |
| Value of options granted to employees, directors and others as non-cash compensation | *—* |  | **20** |  |  | **20** |
| Net loss | *—* |  |  |  | **(5305)** | **(5305)** |
| Balances as of September 30, 2025 | **1139174** | **11392** | **329842** | **(359)** | **(299207)** | **41668** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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**Zion Oil & Gas, Inc.**

**Consolidated Condensed Statement of Changes in Stockholders**' **Equity (Unaudited)**

**For the three and nine months ended September 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  |  |  |
|  | ***Common Stock*** | ***Common Stock*** | ***paid-in*** | ***Subscription*** | ***Accumulated*** |  |
|  | ***Shares*** | ***Amounts*** | ***Capital*** | ***Receivable*** | ***deficit*** | ***Total*** |
|  |  | ***US$*** | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| Balances as of June 30, 2024 | 818874 | 8189 | 308319 | (985) | (290385) | 25138 |
| Funds received from sale of DSPP units and shares and exercise of warrants | 61646 | 617 | 2090 | 985 |  | 3692 |
| Funds received from option exercises | 42 | *\** |  |  |  |  |
| Costs associated with the issuance of shares | *—* |  | (536) |  |  | (536) |
| Value of options granted to employees, directors and others as non-cash compensation | *—* |  | 102 |  |  | 102 |
| Net loss | *—* |  |  |  | (1791) | (1791) |
| Balances as of September 30, 2024 | 880562 | 8806 | 309975 |  | (292176) | 26605 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  |  |  |
|  | ***Common Stock*** | ***Common Stock*** | ***paid-in*** | ***Subscription*** | ***Accumulated*** |  |
|  | ***Shares*** | ***Amounts*** | ***Capital*** | ***Receivable*** | ***deficit*** | ***Total*** |
|  |  | ***US$*** | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| Balance at December 31, 2023 | 640002 | 6400 | 302177 |  | (286559) | 22018 |
| Funds received from sale of DSPP units and shares and exercise of warrants | 240422 | 2405 | 9755 |  |  | 12160 |
| Funds received from option exercises | 138 | 1 | 8 |  |  | 9 |
| Costs associated with the issuance of shares | *—* |  | (2299) |  |  | (2299) |
| Value of options granted to employees, directors and others as non-cash compensation | *—* |  | 334 |  |  | 334 |
| Net loss | *—* |  |  |  | (5617) | (5617) |
| Balances as of September 30, 2024 | 880562 | 8806 | 309975 |  | (292176) | 26605 |

---

\* Less than one thousand

The accompanying notes are an integral part of the unaudited interim consolidated condensed financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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[**Table of Contents**](#toc)

**Zion Oil & Gas, Inc.**

**Consolidated Condensed Statements of Cash Flows (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***For the Nine Months Ended*** | ***For the Nine Months Ended*** |
|  | ***September 30,*** | ***September 30,*** |
|  | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Cash flows from operating activities** |  |  |
| Net loss | **(5305)** | (5617) |
| Adjustments required to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation | **540** | 598 |
| Amortization of right of use lease assets | **79** | 197 |
| Cost of options issued to employees, directors and others as non-cash compensation | **20** | 334 |
| Capital loss on sale of property and equipment |  | 63 |
| Change in assets and liabilities, net: |  |  |
| Prepaid expenses and other | **91** | 258 |
| Governmental receivables | **2** | (155) |
| Other receivables | **(16)** | (17) |
| Lease obligation – current and non-current | **(8)** | (223) |
| Provision for severance pay, net | **2** | (15) |
| Accounts payable | **31** | (83) |
| Accrued liabilities | **(49)** | (85) |
| Net cash used in operating activities | **(4613)** | (4745) |
| **Cash flows from investing activities** |  |  |
| Acquisition of property and equipment | **(10)** | (59) |
| Proceeds from sale of property and equipment |  | 35 |
| Acquisition of drilling rig and related equipment | **(174)** | (178) |
| Investment in unproved oil and gas properties | **(5208)** | (4187) |
| Net cash used in investing activities | **(5392)** | (4389) |
| **Cash flows from financing activities** |  |  |
| Proceeds from exercise of stock options | **1** | 9 |
| Changes in insurance premium financing | **(446)** | (357) |
| Costs paid related to the issuance of new shares | **-** | (2466) |
| Proceeds from issuance of stock and exercise of warrants | **18571** | 12160 |
| Net cash provided by financing activities | **18126** | 9346 |
| Net increase in cash, cash equivalents and restricted cash | **8121** | 212 |
| Cash, cash equivalents and restricted cash – beginning of period | **3336** | 1635 |
| Cash, cash equivalents and restricted cash – end of period | **11457** | 1847 |
| Supplemental schedule of cash flow information |  |  |
| **Non-cash investing and financing activities:** |  |  |
| Unpaid investments in oil & gas properties | **629** | 840 |
| Unpaid costs associated with the issuance of shares | **-** | 167 |
| Depreciation of oil and gas equipment | **71** | 16 |
| Stock subscription receivable | **359** |  |
| Addition of right of use lease assets and lease obligations | **-** | 829 |

---

The accompanying notes are an integral part of the unaudited interim consolidated condensed financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

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Cash, cash equivalents and restricted cash, are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** |
| Cash and cash equivalents | **10373** | 2272 |
| Cash and cash equivalents – restricted | **1084** | 1064 |
|  | **11457** | 3336 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *1* - Nature of Operations, Basis of Presentation and Going Concern**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Nature of Operations**

Zion Oil & Gas, Inc., a Texas corporation ("we," "our," "Zion" or the "Company") is an oil and gas exploration company with a history of *25* years of oil & gas exploration in Israel. As of *September 30, 2025*, the Company has no revenues from its oil and gas operations.

Zion maintains its corporate headquarters in Dallas, Texas. The Company also has branch offices in Caesarea, Israel and Geneva, Switzerland. The purpose of the Israel branch is to support the Company's operations in Israel, and the purpose of the Switzerland branch is to operate a foreign treasury center for the Company.

On *January 24, 2020,* Zion incorporated a wholly owned subsidiary, Zion Drilling, Inc., originally a Delaware corporation but now a Texas corporation, for the purpose of owning a drilling rig, related equipment and spare parts, and on *January 31, 2020,* Zion incorporated another wholly owned subsidiary, Zion Drilling Services, Inc., originally a Delaware corporation but now a Texas corporation, to act as the contractor providing such drilling services. When Zion is *not* using the rig for its own exploration activities, Zion Drilling Services *may* contract with other operators in Israel to provide drilling services at market rates then in effect.

On *October 19, 2022,* Zion incorporated a wholly owned subsidiary in Israel, Zion Drilling Israel Ltd, for the purpose of owning a drilling rig and related equipment and spare parts. On this date, the entity was created as a placeholder only. A bank account was created in *November 2024* and a tax file was created in *January 2025.* The bank account is denominated in Israeli Shekels. When there are bank transactions in the future, there will be a translation adjustment to United States Dollars. Zion Drilling Israel LTD did *not* have any activities during the *nine* months ended *September 30, 2025*.

Zion has the trademark "ZION DRILLING" filed with the United States Patent and Trademark Office. Zion has the trademark filed with the World Intellectual Property Organization in Geneva, Switzerland, pursuant to the Madrid Agreement and Protocol. In addition, Zion has the trademark filed with the Israeli Trademark Office in Israel.

**<u>Exploration Rights/Exploration Activities</u>**

**New Megiddo Valleys License *434* (**"**NMVL *434***"**)** – **Megiddo-Jezreel *#1* Re-Entry (**"**MJ-*01***"**)**

On *September 14, 2023,* the Israel Ministry of Energy approved a new Megiddo Valleys License *434* ("NMVL *434"*), allowing for oil and gas exploration on approximately 75,000 acres or 302 square kilometers. This Exploration License *434* is valid for three years until *September 13, 2026* with *four* potential *1*-year extensions for a total of seven years until *September 13, 2030.* This NMVL *434* effectively supersedes our previous NML *428.*

On *February 21, 2024,* members of the Supervisory Committee visited our rig site. During this visit, they interacted with staff from Zion Oil & Gas, our consultants and potential service providers. Some of these interactions occurred at Kibbutz Sde Eliyahu, while others were conducted through video conferencing with participants from the United States, Europe and the Middle East. Following these discussions, the Committee officially accepted our work plan for the MJ-*01* re-completion project. This acceptance allowed us to sign agreements and secure mobilization dates with our service providers to commence and complete the project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *1* - Nature of Operations, Basis of Presentation and Going Concern** (cont'd)

The initial phase of our recompletion project consisted of a category *three* inspection of the drilling rig, rigging down from MJ-*02* and moving and rigging up over the MJ-*01* well.

Stage *two* of the operation involved drilling out both the steel plugs along with *625* meters (about *2,050* feet) of cement plugs and re-conditioning the wellbore to allow unhindered access to the selected zones for testing.

After *six* years of inactivity in a well over *three* miles deep, the MJ-*01* wellbore presented a challenging environment. The wellbore appeared to have experienced elastic and partial collapse of the casing in some areas. This led to the bottom hole assembly ("BHA") becoming stuck over *4,000* meters from surface. Attempts to overpull the BHA were unsuccessful, and the crew completed a backoff operation which left over *500* meters of the BHA remaining downhole. This is *not* an uncommon occurrence with oil and gas drilling operations and the crew was unsuccessful in retrieving the remaining BHA with the tools that were on location.

Another delay arose out of the logistical challenges we face. The ongoing conflict in the region has impacted shipping routes, the timely arrival of necessary equipment, and created travel difficulties for our rig crews. Our operations require specialized rig crews who are *not* available in Israel.

In light of the combination of downhole, logistical, and crew challenges, as well as holidays, and the *one*-year remembrance of *October 7,* we temporarily paused active operations during *Q4 2024.* This was a necessary step to ensure the safety of our personnel and to ensure proper engineering and tools are brought to location to avoid lengthy delays waiting for additional tools should any be required once the job resumes. With the necessary tools and renewed visas for our crews, we resumed operations in *Q1 2025.* This is, of course, subject to the realities of the present geopolitical environment. The conflict in Israel, while *not* directly impacting our operations on a daily basis, created uncertainties that could affect our schedule at any time.

Zion's rig crew arrived in Israel in *February 2025* and completed critical maintenance and preparatory work. The rig, which was safely "warm stacked" in *September 2024,* underwent necessary checks for maintenance, including fluid changes, lubrication and greasing, and mechanical, electrical, and safety audits to ensure peak functionality. The rig crew drilled out the temporary plug at approximately *1,100* meters and set a permanent plug at the deeper part of the well, allowing for isolation of targeted zones for testing. Perforation and stimulation operations were successfully completed, with gas observed at surface during early flowback.

On *June 10, 2025,* we completed flowback operations at our Megiddo-Jezreel *#1* well and have since temporarily shut it in and demobilized our crew. The last of our crew left the country just hours before the *12*-day war with Iran. We analyzed the initial gas composition data which confirmed that our targeted perforation and stimulation procedures were successful. Gas reached the surface and shows characteristics consistent with a productive reservoir.

Since our *July* update, we have advanced planning for the next phase of operations in Israel. Our technical objective remains unchanged, which is to sidetrack the well and drill a lateral section into the identified target interval to enable multi-stage stimulation across multiple zones. The principal operational refinement is to begin this campaign from the MJ-*02* well, located on the same pad as the MJ-*01* well, just *7.5* meters away on surface and approximately *300* meters offset at depth. Both wellbores access the same target zone. Starting from MJ-*02* allows us to begin in larger casing, use larger-diameter tools, and execute a *two*-stage drilling plan—providing greater flexibility to manage downhole contingencies and improving our chance of operational success.

Logistics remain challenging in Israel's onshore market, where most services and equipment must be imported with added time and cost. Despite providers being heavily contracted, we have secured key services such as drilling, mud, and cementing. Recent visa reforms and progress with ministry approvals are also positive steps forward.

We are preparing to mobilize the rig crew in *January 2026,* complete upgrades and site work in *February,* and begin drilling in *March.* Leveraging the existing wellbore gives us a strong head start, and while this type of lateral drilling is new to onshore Israel, our team is well-positioned to execute it successfully.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *1* - Nature of Operations, Basis of Presentation and Going Concern** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Basis of Presentation**

The accompanying unaudited interim consolidated condensed financial statements of Zion Oil & Gas, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with Article *8*-*03* of Regulation S-*X.* Accordingly, they do *not* include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals necessary for a fair statement of financial position, results of operations and cash flows, have been included. The information included in this Quarterly Report on Form *10*-Q should be read in conjunction with the financial statements and the accompanying notes included in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2024*. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does *not* include all disclosures required by GAAP. The results of operations for the *three* and *nine* months ended *September 30, 2025* are *not* necessarily indicative of the operating results for the year ending *December 31, 2025* or for any other subsequent interim period.

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had *no* effect on the reported results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Going Concern**

The Company incurs cash outflows from operations, and all exploration activities and overhead expenses to date have been financed by way of equity or debt financing. The recoverability of the costs incurred to date is uncertain and dependent upon achieving significant commercial production of hydrocarbons.

The Company's ability to continue as a going concern is dependent upon obtaining the necessary financing to undertake further exploration and development activities and ultimately generating profitable operations from its oil and natural gas interests in the future. The Company's current operations are dependent upon the adequacy of its current assets to meet its current expenditure requirements and the accuracy of management's estimates of those requirements. Should those estimates be materially incorrect, the Company's ability to continue as a going concern *may* be in doubt. The consolidated condensed financial statements have been prepared on a going concern basis, which contemplates realization of assets and liquidation of liabilities in the ordinary course of business. During the *nine* months ended *September 30, 2025*, the Company incurred a net loss of approximately $5.3 million and had an accumulated deficit of approximately $299 million. These factors raise substantial doubt about the Company's ability to continue as a going concern for *one* year from the date the financials were issued.

To carry out planned operations, the Company must raise additional funds through additional equity and/or debt issuances or through profitable operations. There can be *no* assurance that this capital or positive operational income will be available to the Company, and if it is *not,* the Company *may* be forced to curtail or cease exploration and development activities. The consolidated condensed financial statements do *not* include any adjustments that might result from the outcome of this uncertainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *2* - Summary of Significant Accounting Policies**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Net Loss per Share Data**

Basic and diluted net loss per share of common stock, par value $0.01 per share ("Common Stock") is presented in conformity with ASC *260*-*10* "Earnings Per Share." Diluted net loss per share is the same as basic net loss per share for *2025* as the inclusion of 30,386,325 in stock options and 26,696,406 in warrants would be anti-dilutive.

Diluted net loss per share is the same as basic net loss per share for *2024* as the inclusion of 33,337,132 in stock options and 29,303,152 in warrants would be anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Use of Estimates**

The preparation of the accompanying unaudited consolidated condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of expenses. Such estimates include the valuation of unproved oil and gas properties, deferred tax assets, asset retirement obligations, borrowing rate of interest consideration for leases, accounting and legal contingencies. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, political instability and energy markets have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated condensed financial statements in future periods.

The full extent to which the COVID-*19* pandemic *may* directly or indirectly impact our business, results of operations and financial condition, will depend on future developments that are uncertain, including as a result of new information that *may* emerge concerning COVID-*19* and the actions taken to contain it or treat COVID-*19,* as well as the economic impact on local, regional, national and international markets. We have made estimates of the impact of COVID-*19* within our consolidated financial statements, and although there is currently *no* major impact, there *may* be changes to those estimates in future periods. We have made the same estimates as to the potential impact the Israel-Hamas war, the Israel-Hezbollah war and the Israel-Iran war *may* have on our operations. Actual results *may* differ from these estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Oil and Gas Properties and Impairment**

The Company follows the full-cost method of accounting for oil and gas properties. Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Investments in unproved properties and major development projects are *not* amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in loss from continuing operations before income taxes, and the adjusted carrying amount of the proved properties is amortized on the unit-of-production method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *2* - Summary of Significant Accounting Policies** (cont'd)

The Company's oil and gas property represents an investment in unproved properties. These costs are excluded from the amortized cost pool until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The amount of any impairment is charged to expense since a reserve base has *not* yet been established. Impairment requiring a charge to expense *may* be indicated through evaluation of drilling results, relinquishing drilling rights or other information.

During the *three* and *nine* months ended *September 30, 2025*, and *2024,* the Company did not record any post-impairment charges.

Currently, the Company has *no* economically recoverable reserves and *no* amortization base. The Company's unproved oil and gas properties consist of capitalized exploration costs of $26,967,000 and $21,682,000 as of *September 30, 2025* and *December 31, 2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Fair Value Measurements**

The Company follows Accounting Standards Codification (ASC) *820,* "Fair Value Measurements and Disclosures," as amended by Financial Accounting Standards Board (FASB) Financial Staff Position (FSP) *No. 157* and related guidance. Those provisions relate to the Company's financial assets and liabilities carried at fair value and the fair value disclosures related to financial assets and liabilities. ASC *820* defines fair value, expands related disclosure requirements, and specifies a hierarchy of valuation techniques based on the nature of the inputs used to develop the fair value measures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, assuming the transaction occurs in the principal or most advantageous market for that asset or liability.

The Company uses a *three*-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The *three* tiers are defined as follows:

● Level *1—Observable* inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

● Level *2—Observable* inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

● Level *3—Unobservable* inputs that are supported by little or *no* market data, which require the Company to develop its own assumptions.

The Company's financial instruments, including cash and cash equivalents, other receivables, prepaid expenses and other, Government receivables, accounts payable and accrued liabilities, are carried at historical cost. At *September 30, 2025*, and *December 31, 2024*, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *2* - Summary of Significant Accounting Policies** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Stock-Based Compensation**

ASC *718,* "Compensation – Stock Compensation," prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the consolidated condensed financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC *718.* Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Warrants**

In connection with the Dividend Reinvestment and Stock Purchase Plan ("DSPP") financing arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are stand-alone instruments that are *not* puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued in conjunction with the issuance of common stock are initially recorded and accounted as a part of the DSPP investment as additional paid-in capital of the common stock issued. All other warrants are recorded at fair value and expensed over the requisite service period or at the date of issuance, if there is *not* a service period. Warrants granted in connection with ongoing arrangements are more fully described in Note *3, Stockholders*' *Equity*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Related parties**

Parties are considered to be related to the Company if the parties, directly or indirectly, through *one* or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company *may* deal if *one* party controls or can significantly influence the management or operating policies of the other to an extent that *one* of the transacting parties might be prevented from fully pursuing its own separate interests. All transactions with related parties are recorded at fair value of the goods or services exchanged.

A hardship loan of $30,000 was given to an executive vice president in *March 2025* with the stipulation of monthly repayments of $2,500 beginning in *April 2025.* The balance owed Zion was $15,000 as of *September 30, 2025* and the monthly repayments are continuing as of the date of this report. Zion did *not* have any other related party transactions besides the *one* just mentioned during the period ended *September 30, 2025*

*12*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *2* - Summary of Significant Accounting Policies** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Recently Adopted Accounting Pronouncements**

In *November 2023,* the FASB issued ASU *No. 2023*-*07,* "*Segment Reporting (Topic *280*): Improvements to Reportable Segment Disclosures*". The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements. ASU *2023*-*07* is effective for fiscal years beginning after *December 15, 2023,* and interim periods within fiscal years beginning after *December 15, 2024.* Early adoption is permitted. The amendments will be applied retrospectively to all prior periods presented in the financial statements. Zion adopted this ASU effective *January 1, 2023.* The adoption of this ASU did *not* have any impact on its consolidated financial statements.

*Other Recent Accounting Pronouncements*

The Company does *not* believe that the adoption of any recently issued accounting pronouncements in *2025* had a significant impact on our consolidated condensed financial position, results of operations, or cash flow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Depreciation and Accounting for Drilling Rig and Related Equipment**

Zion purchased an onshore oil and gas drilling rig, drilling pipe, related equipment and spare parts for a purchase price of $5.6 million in cash, inclusive of approximately $540,000 allocated to spare parts and $48,000 allocated to additional separate assets. The value of the spare parts and separate assets are captured in separate ledger accounts, but reported as *one* line item with the drilling rig on the balance sheet. Zion determined that the life of the I-*35* drilling rig (the rig Zion purchased), is 10 years. Zion is depreciating the rig on a straight-line basis.

Zion uses the First In First Out ("FIFO") method of accounting for the spare parts, meaning that the earliest items purchased will be the *first* item charged to the well in which the spare parts gets consumed.

It is also noteworthy that various components and systems on the rig will be subject to certifications by the manufacturer to ensure that the rig is maintained at optimal levels. Per standard practice in upstream oil and gas, each certification performed on our drilling rig increases the useful life of the rig by *five* years. The costs of each certification will be added to the drilling rig account, and our straight-line amortization will be adjusted accordingly.

Zion purchased rig spare parts and other drilling equipment totaling approximately $174,000 during the *nine* months ended *September 30, 2025* in preparation for its MJ-*01* re-entry project.

See the table below for a reconciliation of the rig-related activity during the period ended *September 30, 2025*:

**I-*35* Drilling Rig & Associated Equipment:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** |
|  | ***I-35*** | ***Rig*** | ***Other*** |  |
|  | ***Drilling*** | ***Spare*** | ***Drilling*** |  |
|  | ***Rig*** | ***Parts*** | ***Assets*** | ***Total*** |
|  | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
| **Gross Assets:** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| **December 31, 2024** | 6494 | 747 | 344 | 7585 |
| Asset Additions | **-** | **90** | **84** | **174** |
| Asset Disposals for Self-Consumption | **-** | **(52)** | **-** | **(52)** |
| **September 30, 2025** | **6494** | **785** | **428** | **7707** |
| **Accumulated Depreciation:** |  |  |  |  |
| **December 31, 2024** | 2538 |  | 269 | 2807 |
| Asset Depreciation | **476** | **-** | **61** | **537** |
| **September 30, 2025** | **3014** | **-** | **330** | **3344** |
| **Net Assets** | **3480** | **785** | **98** | **4363** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** | ***As of December 31, 2024*** |
|  | ***I-35*** | ***Rig*** | ***Other*** |  |
|  | ***Drilling*** | ***Spare*** | ***Drilling*** |  |
|  | ***Rig*** | ***Parts*** | ***Assets*** | ***Total*** |
|  | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
| **Gross Assets:** | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| **December 31, 2023** | 6494 | 608 | 442 | 7544 |
| Asset Additions | **-** | **178** | **-** | **178** |
| Asset Disposals |  |  | **(98)** | **(98)** |
| Asset Disposals for Self-Consumption | **-** | **(39)** | **-** | **(39)** |
| **December 31, 2024** | **6494** | **747** | **344** | **7585** |
| **Accumulated Depreciation:** |  |  |  |  |
| **December 31, 2023** | 1904 |  | 130 | 2034 |
| Asset Depreciation | **634** | **-** | **139** | **773** |
| **December 31, 2024** | **2538** | **-** | **269** | **2807** |
| **Net Assets** | **3956** | **747** | **75** | **4778** |

---

**Note *3* - Stockholders**' **Equity**

The Company's shareholders approved the amendment of the Company's Amended and Restated Certificate of Incorporation to increase the number of shares of common stock, par value $0.01, that the Company is authorized to issue from 1,200,000,000 shares to 1,600,000,000 shares, effective *June 4, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. *2021* Omnibus Incentive Stock Option Plan**

Effective *June 9, 2021,* the Company's shareholders authorized the adoption of the Zion Oil & Gas, Inc. *2021* Omnibus Incentive Stock Option Plan ("Omnibus Plan") for employees, directors and consultants, initially reserving for issuance thereunder 38,000,000 shares of common stock.

The Omnibus Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, bonus stock, awards in lieu of cash obligations, other stock-based awards and performance units. The plan also permits cash payments under certain conditions.

The compensation committee of the Board of Directors (comprised of independent directors) is responsible for determining the type of award, when and to whom awards are granted, the number of shares and the terms of the awards and exercise prices. The options are exercisable for a period *not* to exceed ten years from the date of grant.

During the *nine* months ended *September 30, 2025*, the Company granted the following options from the Omnibus Plan for employees, directors and consultants, to purchase shares of common stock as non-cash compensation:

i. Options to purchase 175,000 shares of Common Stock to *five* senior officers and *two* staff members at an exercise price of $0.10 per share. The options vested upon grant and are exercisable through *January 4, 2035.* The fair value of the options at the date of grant amounted to approximately $15,000.

ii. Options to purchase 25,000 shares of Common Stock to *one* senior officer at an exercise price of $0.01 per share. The options vested upon grant and are exercisable through *January 4, 2035.* These options were granted per the provisions of the Israeli Appendix to the Plan. The fair value of the options at the date of grant amounted to approximately $3,000.

iii. Options to purchase 10,000 shares of Common Stock to *one* staff member at an exercise price of $0.01 per share. These options were granted per the provisions of the Israeli Appendix to the Plan. The options vested upon grant and are exercisable through *September 1, 2035.* The fair value of the options at the date of grant amounted to approximately $2,000.

During the *nine* months ended *September 30, 2024*, the Company granted the following options from the Omnibus Plan for employees, directors and consultants, to purchase shares of common stock as non-cash compensation:

i. Options to purchase 175,000 shares of Common Stock to *five* senior officers and *one* staff member at an exercise price of $0.07 per share. The options vested upon grant and are exercisable through *January 4, 2034.* The fair value of the options at the date of grant amounted to approximately $11,000.

ii. Options to purchase 25,000 shares of Common Stock to *one* senior officer at an exercise price of $0.01 per share. The options vested upon grant and are exercisable through *January 4, 2034.* These options were granted per the provisions of the Israeli Appendix to the Plan. The fair value of the options at the date of grant amounted to approximately $2,000.

iii. Options to purchase 10,000 shares of Common Stock to *one* staff member at an exercise price of $0.01 per share. The options vested upon grant and are exercisable through *September 1, 2034.* These options were granted per the provisions of the Israeli Appendix to the Plan. The fair value of the options at the date of grant amounted to approximately $1,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Stock Options**

The stock option transactions since *January 1, 2025* are shown in the table below:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  |  | ***Average*** |
|  | ***Number of*** | ***exercise*** |
|  | ***shares*** | ***price*** |
|  |  | ***US$*** |
| Outstanding, December 31, 2024 | 32900882 | 0.20 |
| Changes during 2025 to: |  |  |
| Granted to employees, officers, directors and others | **210000** | 0.09 |
| Expired/Cancelled/Forfeited | **(1721557)** | 0.21 |
| Exercised | **(1003000)** | 0.16 |
| Outstanding, September 30, 2025 | **30386325** | 0.20 |
| Exercisable, September 30, 2025 | **30386325** | 0.20 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

The following table summarizes information about stock options outstanding as of *September 30, 2025*:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Shares underlying outstanding options (non-vested)** | **Shares underlying outstanding options (non-vested)** | **Shares underlying outstanding options (non-vested)** | **Shares underlying outstanding options (non-vested)** | **Shares underlying outstanding options (fully vested)** | **Shares underlying outstanding options (fully vested)** | **Shares underlying outstanding options (fully vested)** | **Shares underlying outstanding options (fully vested)** |
|  |  | **Weighted** |  |  |  | **Weighted** |  |
|  |  | **average** | **Weighted** |  |  | **average** | **Weighted** |
| **Range of** |  | **remaining** | **Average** | **Range of** |  | **remaining** | **Average** |
| **exercise** | **Number** | **contractual** | **Exercise** | **exercise** | **Number** | **contractual** | **Exercise** |
| **price** | **outstanding** | **life (years)** | **price** | **price** | **Outstanding** | **life (years)** | **price** |
| **US$** |  |  | **US$** | **US$** |  |  | **US$** |
|  |  |  |  | 0.01 | 107500 | 1.25 | 0.01 |
|  |  |  |  | 0.01 | 40000 | 1.55 | 0.01 |
|  |  |  |  | 0.01 | 40000 | 2.00 | 0.01 |
|  |  |  |  | 0.01 | 62500 | 2.25 | 0.01 |
|  |  |  |  | 0.01 | 25000 | 2.26 | 0.01 |
|  |  |  |  | 0.01 | 30000 | 2.41 | 0.01 |
|  |  |  |  | 0.01 | 4000 | 2.52 | 0.01 |
|  |  |  |  | 0.01 | 25000 | 3.27 | 0.01 |
|  |  |  |  | 0.01 | 35000 | 3.97 | 0.01 |
|  |  |  |  | 0.01 | 150000 | 4.14 | 0.01 |
|  |  |  |  | 0.01 | 35000 | 4.27 | 0.01 |
|  |  |  |  | 0.01 | 75000 | 5.27 | 0.01 |
|  |  |  |  | 0.01 | 200000 | 5.64 | 0.01 |
|  |  |  |  | 0.01 | 200000 | 5.80 | 0.01 |
|  |  |  |  | 0.01 | 10000 | 5.92 | 0.01 |
|  |  |  |  | 0.01 | 300000 | 6.27 | 0.01 |
|  |  |  |  | 0.01 | 55000 | 6.30 | 0.01 |
|  |  |  |  | 0.01 | 560000 | 6.55 | 0.01 |
|  |  |  |  | 0.01 | 75000 | 6.87 | 0.01 |
|  |  |  |  | 0.01 | 10000 | 6.93 | 0.01 |
|  |  |  |  | 0.01 | 495000 | 6.99 | 0.01 |
|  |  |  |  | 0.01 | 25000 | 7.27 | 0.01 |
|  |  |  |  | 0.01 | 10000 | 7.93 | 0.01 |
|  |  |  |  | 0.01 | 895000 | 7.98 | 0.01 |
|  |  |  |  | 0.01 | 25000 | 8.27 | 0.01 |
|  |  |  |  | 0.01 | 10000 | 8.93 | 0.01 |
|  |  |  |  | 0.01 | 25000 | 9.27 | 0.01 |
|  |  |  |  | 0.01 | 10000 | 9.93 | 0.01 |
|  |  |  |  | 0.06 | 50000 | 7.27 | 0.06 |
|  |  |  |  | 0.07 | 125000 | 8.27 | 0.07 |
|  |  |  |  | 0.07 | 6562000 | 7.99 | 0.07 |
|  |  |  |  | 0.09 | 175000 | 9.27 | 0.09 |
|  |  |  |  | 0.14 | 210000 | 6.30 | 0.14 |
|  |  |  |  | 0.15 | 3000000 | 6.27 | 0.15 |
|  |  |  |  | 0.15 | 5954325 | 6.55 | 0.15 |
|  |  |  |  | 0.16 | 255000 | 0.19 | 0.16 |
|  |  |  |  | 0.16 | 75000 | 4.20 | 0.16 |
|  |  |  |  | 0.18 | 25000 | 0.17 | 0.18 |
|  |  |  |  | 0.18 | 4830000 | 6.99 | 0.18 |
|  |  |  |  | 0.24 | 25000 | 6.84 | 0.24 |
|  |  |  |  | 0.24 | 118000 | 6.87 | 0.24 |
|  |  |  |  | 0.25 | 50000 | 5.92 | 0.25 |
|  |  |  |  | 0.25 | 363000 | 5.92 | 0.25 |
|  |  |  |  | 0.28 | 25000 | 3.93 | 0.28 |
|  |  |  |  | 0.29 | 25000 | 1.71 | 0.29 |
|  |  |  |  | 0.39 | 1335000 | 5.78 | 0.39 |
|  |  |  |  | 0.59 | 1200000 | 1.64 | 0.59 |
|  |  |  |  | 0.59 | 1600000 | 5.64 | 0.59 |
|  |  |  |  | 0.92 | 300000 | 1.26 | 0.92 |
|  |  |  |  | *0.92* | 550000 | *5.27* | 0.92 |
|  |  |  |  | 0.01-0.92 | 30386325 |  | 0.20 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *16*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

**Granted to employees**

The following table sets forth information about the weighted-average fair value of options granted to employees and directors during the year, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants:

---

| | | |
|:---|:---|:---|
|  | ***For the Nine months ended*** | ***For the Nine months ended*** |
|  | ***September 30,*** | ***September 30,*** |
|  | ***2025*** | ***2024*** |
| Weighted-average fair value of underlying stock at grant date | $**0.11** | $0.07 |
| Dividend yields |  |  |
| Expected volatility | **132%-135%** | 133%-134% |
| Risk-free interest rates | **3.68%-4.41%** | 3.71%-3.97% |
| Expected lives (in years) | **5.00** | 5.00 |
| Weighted-average grant date fair value | $**0.10** | $0.07 |

---

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the options.

The expected life represents the weighted average period of time that options granted are expected to be outstanding. The expected life of the options granted to employees and directors is calculated based on the Simplified Method as allowed under Staff Accounting Bulletin *No. 110* ("SAB *110"*), giving consideration to the contractual term of the options and their vesting schedules, as the Company does *not* have sufficient historical exercise data at this time. The expected life of the option granted to non-employees equals their contractual term. In the case of an extension of the option life, the calculation was made on the basis of the extended life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *17*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Compensation Cost for Warrant and Option Issuances**

The following table sets forth information about the compensation cost of warrant and option issuances recognized for employees and directors:

---

| | |
|:---|:---|
| **For the Three Months Ended September 30,** | **For the Three Months Ended September 30,** |
| **2025** | **2024** |
| **US$ thousands** | **US$ thousands** |
| **2** | 101 |

---

---

| | |
|:---|:---|
| **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
| **2025** | **2024** |
| **US$ thousands** | **US$ thousands** |
| **20** | 331 |

---

The following table sets forth information about the compensation cost of warrant and option issuances recognized for non-employees:

---

| | |
|:---|:---|
| **For the Three Months Ended September 30,** | **For the Three Months Ended September 30,** |
| **2025** | **2024** |
| **US$ thousands** | **US$ thousands** |
|  | 1 |

---

---

| | |
|:---|:---|
| **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
| **2025** | **2024** |
| **US$ thousands** | **US$ thousands** |
|  | 3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *18*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Dividend Reinvestment and Stock Purchase Plan (**"**DSPP**"**)**

On *March 13, 2014,* Zion filed a registration statement on Form S-*3* that was part of a replacement registration statement that was filed with the SEC using a "shelf" registration process. The registration statement was declared effective by the SEC on *March 31, 2014.* On *February 23, 2017,* the Company filed a Form S-*3* with the SEC (Registration *No. 333*-*216191*) as a replacement for the Form S-*3* (Registration *No. 333*-*193336*), for which the *three*-year period ended *March 31, 2017,* along with the base Prospectus and Supplemental Prospectus. The Form S-*3,* as amended, and the new base Prospectus became effective on *March 10, 2017,* along with the Prospectus Supplement that was filed and became effective on *March 10, 2017.* The Prospectus Supplement under Registration *No. 333*-*216191* describes the terms of the DSPP and replaces the prior Prospectus Supplement, as amended, under the prior Registration *No. 333*-*193336.*

On *March 13, 2023,* Zion filed with the Securities and Exchange Commission an Amendment *No. 2* to the Prospectus Supplement dated as of *December 15, 2021* and accompanying base prospectus dated *December 1, 2021* relating to the Company's Dividend Reinvestment and Direct Stock Purchase Plan. The Prospectus forms a part of the Company's Registration Statement on Form S-*3* (File *No. 333*-*261452*), as amended, which was declared effective by the SEC on *December 15, 2021.*

On *December 14, 2022,* the Company extended the termination date of the ZNWAG warrant by *one* (*1*) year from the expiration date of *January 8, 2023* to *January 8, 2024.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

As of *January 8, 2024,* any outstanding ZNWAG warrants expired.

Under our Plan, the Company under a Request For Waiver Program executed Waiver Term Sheets of a unit option program consisting of a Unit (shares of stock and warrants) of its securities and subsequently an option program consisting of shares of stock to a participant. The participant's Plan account was credited with the number of shares of the Company's Common Stock and warrants that were acquired. Each warrant affords the participant the opportunity to purchase *one* share of our Common Stock at a warrant exercise price of $1.00. The warrant had the company notation of "ZNWAM." The warrants were *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants became exercisable on *January 15, 2021* and continued to be exercisable through *July 15, 2022.*

On *March 21, 2022,* the Company extended the termination date of the ZNWAM warrant by *one* (1) year from the expiration date of *July 15, 2022* to *July 15, 2023* and revised the exercise price to $0.05. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *June 16, 2023,* the Company extended the termination date of the ZNWAM warrant from *July 15, 2023* to *September 6, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *August 21, 2023,* the Company extended the termination date of the ZNWAM warrant from *September 6, 2023* to *October 31, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *October 19, 2023,* the Company extended the termination date of the ZNWAM warrant from *October 31, 2023* to *December 31, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *December 18, 2023,* the Company extended the termination date of the ZNWAM warrant from *December 31, 2023* to *March 31, 2024.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *19*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

On *March 28, 2024,* the Company extended the termination date of the ZNWAM warrant from *March 31, 2024* to *December 31, 2024.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *January 21, 2025,* the Company extended the termination date of the ZNWAM warrant from *December 31, 2024* to *March 31, 2025.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *March 18, 2025,* the entire number of outstanding warrants of 4,376,000 were exercised at $.05 each for total proceeds to Zion of approximately $219,000. As of this report date, there are *no* ZNWAM warrants outstanding.

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet of a unit program consisting of units of shares of stock and warrants to a participant. After conclusion of the program on *June 18, 2021,* the participant's Plan account was credited with the number of shares of the Company's Common Stock and warrants that were acquired. Each warrant affords the participant the opportunity to purchase one share of our Common Stock at a warrant exercise price of $.25. The warrant shall have the company notation of "ZNWAQ." The warrants were *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants were issued on *May 5, 2022* and were exercisable through *July 15, 2023* at a revised per share exercise price of $.05.

On *June 16, 2023,* the Company extended the termination date of the ZNWAQ warrant from *July 15, 2023* to *September 6, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *August 21, 2023,* the Company extended the termination date of the ZNWAQ warrant from *September 6, 2023* to *October 31, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *October 19, 2023,* the Company extended the termination date of the ZNWAQ warrant from *October 31, 2023* to *December 31, 2023.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *December 18, 2023,* the Company extended the termination date of the ZNWAQ warrant from *December 31, 2023* to *March 31, 2024.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *March 28, 2024,* the Company extended the termination date of the ZNWAQ warrant from *March 31, 2024* to *December 31, 2024.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

On *January 21, 2025,* the Company extended the termination date of the ZNWAQ warrant from *December 31, 2024* to *March 31, 2025.* Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

During *March 2025,* the entire number of outstanding warrants of 23,428,348 were exercised at $.05 each for total proceeds to Zion of approximately $1,171,000. As of this report date, there are no ZNWAQ warrants outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *20*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet of a unit program consisting of units of shares of stock and warrants to a participant. After conclusion of the program on *November 15, 2021,* the participant's Plan account was credited with the number of shares of the Company's Common Stock and warrants that will be acquired. Each warrant affords the participant the opportunity to purchase *one* share of our Common Stock at a warrant exercise price of $1.00. The warrant shall have the company notation of "ZNWAS." The warrants will *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants will be issued and become exercisable on *January 15, 2026* and continue to be exercisable through *June 30, 2026* at a per share exercise price of $.25.

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet of a unit program consisting of units of shares of stock and warrants to a participant. After conclusion of the program on *September 30, 2022,* the participant's Plan account was credited with the number of shares of the Company's Common Stock and Warrants that were acquired. Each warrant affords the participant the opportunity to purchase *one* share of our Common Stock at a warrant exercise price of $.25. The warrant shall have the company notation of "ZNWAT." The warrants will *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants will be issued and become exercisable on *November 15, 2025* and continue to be exercisable through *December 31, 2025* at a per share exercise price of $.25. On *August 27, 2025,* the Company issued 9,019,652 warrants to *one* participant, with an expiration date of *December 31, 2025.* The exercise price of the ZNWAT warrant was lowered from *$.25* to $.18.

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet of a unit program consisting of units of shares of stock and warrants to a participant. After conclusion of the program on *December 31, 2022,* the participant's Plan account was credited with the number of shares of the Company's Common Stock and Warrants that were acquired. Each warrant affords the participant the opportunity to purchase *one* share of our Common Stock at a warrant exercise price of $.25. The warrant shall have the company notation of "ZNWAU." The warrants will *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants will be issued and exercisable on *January 15, 2026* and continue to be exercisable through *June 30, 2026* at a per share exercise price of $.25.

On *January 1, 2024,* the Company executed a Waiver Term Sheet with a participant consisting of shares of stock. After conclusion of the program on *March 31, 2024,* the participant's Plan account was credited with the number of shares of the Company's Common Stock that were acquired. During the *three* and *nine* months ended *September 30, 2024*, Zion incurred $536,000 and $2,299,000 in equity issuance costs and $2,921,000 in equity issuance costs for the year ending *December 31, 2024.*

During the *three* and *nine* months ended *September 30, 2025*, Zion did *not* incur any equity issuance costs.

On *April 1, 2024,* the Company executed its current Waiver Term Sheet with a participant consisting of shares of stock and warrants.

The program was scheduled to terminate at the earlier of: (a) a maximum purchase of $10,000,000 through the DSPP, (b) *October 1, 2024* or (c) the closing price of Zion's stock is 15 cents per share for *five* (*5*) consecutive days. Additional terms of the Waiver Term Sheet included the pro-rata issuance of up to 5,000,000 warrants with an exercise price of $.25 per share and an expiration date of *December 31, 2024,* in the event the Participant purchases up to $5,000,000 of the Company's stock by *July 1, 2024.*

On or around *August 13, 2024,* a *first* amendment to its current Waiver Term Sheet was signed with the participant. The additional terms of the Waiver Term sheet included the pro-rata issuance of up to 10,000,000 warrants with an exercise price of $.25 per share and an expiration date of *December 31, 2024,* in the event the Participant purchases up to $10,000,000 of the Company's stock by *October 1, 2024.*

On or around *September 30, 2024,* a *second* amendment to its current Waiver Term Sheet was signed with the participant. The additional terms of the Waiver Term sheet included changing the expiration date to *December 31, 2024* and the pro-rata issuance of up to 10,000,000 warrants with an exercise price of $.25 per share and an expiration date of *April 1, 2025,* in the event the Participant purchases up to $10,000,000 of the Company's stock by *December 31, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *21*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

On or around *November 12, 2024,* a *third* amendment to the Waiver Term Sheet was signed with the participant. The additional terms of the Waiver Term sheet included changing the provision for the program termination provided that the closing stock price is $.20 cents per share or higher for *five* (*5*) consecutive days.

On or around *January 21, 2025,* a *fourth* amendment to the Waiver Term Sheet was signed with the participant. The Pricing Plan of the program terminated at the earlier of: (a) a maximum purchase of $15,000,000 through the DSPP, (b) *June 30, 2025* or (c) the closing price of Zion's stock is 20 cents per share for *five* (*5*) consecutive days. Additional terms of the Waiver Term Sheet include the pro-rata issuance of up to 15,000,000 warrants with an exercise price of $.25 per share and an expiration date of *December 31, 2025,* in the event the Participant purchases up to $15,000,000 of the Company's stock by *September 30, 2025*. As of *May 2, 2025,* this latest Waiver Term Sheet was terminated as the participant completed the maximum purchase of $15,000,000 through the DSPP along with 15,000,000 warrants.

On *May 19, 2025,* a total of 15,000,000 warrants were issued to the participant with the internal designation as the "ZNWBB" warrants.

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet effective *August 27, 2025* of shares of stock to a participant. This program had a maximum investment of $2,500,000. After conclusion of the program on around *September 30, 2025,* the participant's Plan account was credited with the number of shares of the Company's Common Stock that were acquired.

Under our Plan, the Company under a Request For Waiver Program executed a Waiver Term Sheet effective *November 4, 2025* of shares of stock and warrants to a participant. This program has a maximum investment of $250,000.00 excluding the exercise of any warrants. After conclusion of the program by *November 30, 2025,* the participant's Plan account will be credited with the number of shares of the Company's Common Stock and warrants that were acquired. Each warrant affords the participant the opportunity to purchase one share of our Common Stock at a warrant exercise price of $.05. The warrant shall have the company notation of "ZNWBC." The warrants will *not* be registered for trading on the OTCQB or any other stock market or trading market. The warrants will be issued to the participant at the conclusion of the Request for Waiver Program and the participant has until *March 15, 2026* in which to exercise the warrants.

During the *nine* months ended *September 30, 2025*, *one* participant who participated in the "Request for Waiver" aspect of the DSPP contributed approximately 64% of the net cash raised through the DSPP.

During the *nine* months ended *September 30, 2024*, *one* participant who participated in the "Request for Waiver" aspect of the DSPP contributed approximately 56% of the net cash raised through the DSPP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *22*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

***Amendment *No. 4**** – ***New Unit Option under the Unit Program***

Under our Plan, we provided a Unit Option under our Unit Program with this Amendment *No. 4.* This Unit Option period began on *November 6, 2023* and was scheduled to terminate on *December 31, 2023.* See Amendment *No. 5* below for data on an extension.

Our Unit Program consists of the combination of Common Stock and warrants with basic Unit Program features, conditions and terms outlined in the Original Prospectus Supplement and Amendment *No. 1.* Amendment *No. 4* provided the option period, unit price and the determination of the number of shares of Common Stock and warrants per unit. This Unit Option began on *November 6, 2023* and terminated on *December 31, 2023.* The Unit Option consisted of Units of our securities where each Unit (priced at $250.00 each) was comprised of (i) a certain number of shares of Common Stock determined by dividing $250.00 (the price of *one* Unit) by the average of the high and low sale prices of the Company's publicly traded common stock as reported on the OTCQB on the Unit Purchase Date and (ii) Common Stock purchase warrants to purchase an additional *fifty* (50) shares of Common Stock at a per share exercise price of $0.25. The participant's Plan account was credited with the number of shares of the Company's Common Stock and Warrants that were acquired under the Units purchased. Each warrant afforded the participant the opportunity to purchase one share of our Common Stock at a warrant exercise price of $0.25. The warrant would have the Company notation of "ZNWBA" and was *not* be registered for trading on the OTCQB or any other stock market or trading market.

Plan participants, who enrolled into the Unit Program with the purchase of at least *one* Unit and enroll in the separate Automatic Monthly Investments ("AMI") program at a minimum of *$50.00* per month, received an additional *fifty* (50) warrants at an exercise price of $0.25 during this Unit Option Program. The *fifty* (50) additional warrants were for enrolling into the AMI program and received the above warrant with the Company notation of "ZNWBA." Existing subscribers to the AMI were entitled to the additional *fifty* (50) warrants, if they purchased at least *one* (*1*) Unit during the Unit program.

The ZNWBA warrants became exercisable on *January 15, 2024,* and continued to be exercisable through *January 15, 2025,* unless extended, at a per share exercise price of $0.25. See Amendment *No. 5* below for new dates.

***Amendment *No. 5**** – ***Extension of Termination Date to *January 31, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *January 31, 2024.*

The ZNWBA warrants now would be *first* exercisable on *February 15, 2024,* instead of *January 15, 2024* and continued to be exercisable through *February 15, 2025,* instead of *January 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 5* to Prospectus Supplement was *December 20, 2023.*

***Amendment *No. 6**** – ***Extension of Termination Date to *February 29, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *February 29, 2024.*

The ZNWBA warrants now will be exercisable on *March 15, 2024,* instead of *February 15, 2024* and continued to be exercisable through *March 15, 2025,* instead of *February 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 6* to Prospectus Supplement was *January 29, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *23*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

***Amendment *No. 7**** – ***Extension of Termination Date to *March 31, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *March 31, 2024.*

The ZNWBA warrants now will be *first* exercisable on *April 15, 2024,* instead of *March 15, 2024* and continued to be exercisable through *April 15, 2025,* instead of *March 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 7* to Prospectus Supplement was *February 26, 2024.*

***Amendment *No. 8**** – ***Extension of Termination Date to *April 30, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *April 30, 2024.*

The ZNWBA warrants now will be *first* exercisable on *May 15, 2024,* instead of *April 15, 2024,* and continued to be exercisable through *May 15, 2025,* instead of *April 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 8* to Prospectus Supplement was *March 23, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *24*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

***Amendment *No. 9**** – ***Extension of Termination Date to *May 31, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *May 31, 2024.*

The ZNWBA warrants now will be *first* exercisable on *June 15, 2024,* instead of *May 15, 2024,* and continued to be exercisable through *June 15, 2025,* instead of *May 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 9* to Prospectus Supplement was *April 24, 2024.*

***Amendment *No. 10**** – ***Extension of Termination Date to *August 31, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *August 31, 2024.*

The ZNWBA warrants now will be *first* exercisable on *September 15, 2024,* instead of *June 15, 2024,* and continue to be exercisable through *September 14, 2025,* instead of *June 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 10* to Prospectus Supplement was *May 29, 2024.*

***Amendment *No. 11**** – ***Extension of Termination Date to *October 15, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *October 15, 2024.*

The ZNWBA warrants now will be *first* exercisable on *November 15, 2024,* instead of *September 15, 2024,* and continue to be exercisable through *November 14, 2025,* instead of *September 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 11* to Prospectus Supplement was *August 22, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *25*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

***Amendment *No. 12**** – ***Extension of Termination Date to *December 31, 2024***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023.* Our Unit Program consists of the combination of Common Stock and warrants with an extended time period, but otherwise the same Unit Program features, conditions and terms in the Prospectus Supplement and Amendment *No. 4* apply. We extended under our Unit Program that was to terminate *October 15, 2024,* but now will terminate *December 31, 2024,* and we extended the exercise and termination dates of the related ZNWBA warrants.

For Plan participants who enroll into the Unit Program with the purchase of at least *one* Unit and also enroll in the separate Automatic Monthly Investments ("AMI") program at a minimum of *$50.00* per month or more, will receive an additional *fifty* (50) Warrants at an exercise price of $0.25 during this Unit Option Program. The *fifty* (*50*) additional warrants are for enrolling into the AMI program. Existing subscribers to the AMI are entitled to the additional *fifty* (*50*) warrants once, if they purchase at least *one* (1) Unit during the Unit program.

The ZNWBA warrants became exercisable on *January 31, 2025,* instead of *November 15, 2024,* and continue to be exercisable through *January 31, 2026,* instead of *November 15, 2025,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 12* to Prospectus Supplement was *October 9, 2024.*

***Amendment *No. 13**** – ***Extension of Termination Date to *February 28, 2025***

Under our Dividend Reinvestment and Common Stock Purchase Plan (the "Plan"), we extended the current Unit Option that was filed under Amendment *No. 4,* dated *November 6, 2023,* to terminate on *February 28, 2025.*

The ZNWBA warrants became exercisable on *March 31, 2025,* instead of *January 31, 2025,* and continue to be exercisable through *March 31, 2026,* instead of *January 31, 2026,* unless extended, at a per share exercise price of $0.25. Zion considers this warrant as permanent equity per ASC *815*-*40*-*35*-*2.* As such, there is *no* value assigned to this extension.

Accordingly, all references in the Original Prospectus Supplement and Amendment *No. 1* and Amendment *No. 4,* concerning the Unit Option, continue, except for the substitution of the revised Unit Option dates and features above. All other Plan features, conditions and terms remain unchanged.

The date of this Amendment *No. 13* to Prospectus Supplement was *December 10, 2024.*

The current Unit Option terminated on *February 28, 2025* as described in Amendment *No. 13.* The ZWNBA warrants, exercisable at $0.25, were issued on *March 31, 2025* and will be exercisable through *March 31, 2026.* 

For the *three* and *nine* months ended *September 30, 2025*, approximately $180,000 and $359,000, respectively, were recorded under the Company's Statement of Changes in Stockholders' Equity as Subscriptions Receivables. Approximately $156,000 of the $359,000 receivable at *September 30, 2025* pertains to an exercise of stock options by a former director. These funds were later received in *October 2025.*

For the *three* and *nine* months ended *September 30, 2024*, approximately $985,000 and $985,000, respectively, were recorded under the Company's Statement of Changes in Stockholders' Equity as Subscriptions Receivables.

For the *three* and *nine* months ended *September 30, 2025*, approximately $4,791,000 and $18,571,000, respectively, were raised under the DSPP program.

For the *three* and *nine* months ended *September 30, 2024*, approximately $3,692,000 and $12,160,000 were raised under the DSPP program, respectively. The $3,692,000 and $12,160,000 figures were reduced by $536,000 and $2,299,000, respectively, in equity issuance costs to an outside party resulting in net cash provided of $3,156,000 and $9,861,000, respectively.

The company raised approximately $931,000 from the period *October 1, 2025* through *November 5, 2025*, under the DSPP program, which includes collection of the $359,000 stock subscription receivable at *September 30, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *26*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

The warrants represented by the company notation ZNWAA are tradeable on the OTCQB market under the symbol ZNOGW. However, all of the other warrants characterized above, in the table below, and throughout this Form *10*-Q, are *not* tradeable and are used internally for classification and accounting purposes only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Warrant Table**

The warrant balances at *December 31, 2024* and transactions since *January 1, 2025* are shown in the table below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | ***Warrant*** | ***Outstanding*** |  |  |  | ***Outstanding*** |
|  | ***Exercise*** | ***Termination*** | ***Balance,*** | ***Warrants*** | ***Warrants*** | ***Warrants*** | ***Balance,*** |
| **Warrants** | ***Price*** | ***Date*** | ***December 31, 2024*** | ***Issued*** | ***Exercised*** | ***Expired*** | ***September 30, 2025*** |
| ZNWAA | $2.00 | *01/31/2026* | 1498804 |  |  |  | 1498804 |
| ZNWAM | $0.05 | *03/31/2025* | 4376000 |  | (4376000) |  |  |
| ZNWAQ | $0.05 | *03/31/2025* | 23428348 |  | (23428348) |  |  |
| ZNWBA | $0.25 | *03/31/2026* |  | 1177950 |  |  | 1177950 |
| ZNWAT | $0.18 | *12/31/2025* |  | 9019652 |  |  | 9019652 |
| ZNWBB | $0.25 | *12/31/2025* |  | 15000000 |  |  | 15000000 |
| Outstanding warrants |  |  | 29303152 | 25197602 | (27804348) |  | 26696406 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *27*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *3* - Stockholders**' **Equity** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Warrant Descriptions of Current Warrants**

The price and the expiration dates for the series of warrants to investors are shown in the table below. The listing contains only those warrants with a future expiration date.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Period of Grant*** | ***US$*** | ***Expiration Date*** |
| ZNWAA Warrants | *A,B,C,D,H* | *March 2013 – December 2014* | 2.00 | January 31, 2026 |
| ZNWAS Warrants | *E* | *August 2021 – March 2022* | 0.25 | June 30, 2026 |
| ZNWAT Warrants | *J* | *August – September 2022* | 0.18 | December 31, 2025 |
| ZNWAU Warrants | *E* | *October – November 2022* | 0.25 | June 30, 2026 |
| ZNWBA Warrants | *F,G* | *November – December 2024* | 0.25 | March 31, 2026 |
| ZNWBB Warrants | *I* | *April 2024 – June 2025* | 0.25 | December 31, 2025 |

---

---

| | |
|:---|:---|
| A | On *May 29, 2019,* the Company extended the expiration date of the Warrants by *one* (1) year. |
| B | On *September 15, 2020,* the Company extended the expiration date of the Warrants by *two* (2) years. |
| C | On *December 14, 2022,* the Company extended the expiration date of the Warrants by *one* (1) year. |
| D | On *January 10, 2024,* the Company extended the expiration date of the ZNWAA warrant by *one* (1) year. |
| E | These warrants will be issued and become exercisable beginning on *January 15, 2026* and expire on *June 30, 2026.* |
| F | On *November 6, 2023,* the Company announced a new Unit Offering and the related ZNWBA warrant. |

---

---

| | |
|:---|:---|
| G | On *May 29, 2024,* the Company filed Amendment *No. 10* whereby the current unit option was extended to *August 31, 2024* and the exercise date and termination date of the related ZNWBA warrants were also extended. On *August 22, 2024,* the Company filed Amendment *No. 11* whereby the current unit option was extended to *October 15, 2024* and the exercise date and termination date of the related ZNWBA warrants were also extended. On *October 9, 2024,* the Company filed Amendment *No. 12* whereby the current unit option was extended to *December 31, 2024* and the exercise date and termination date of the related ZNWBA warrants were also extended to *January 31, 2026.* On *December 10, 2024,* the Company filed Amendment *No. 13* whereby the current unit option was extended to *February 28, 2025,* when the unit option ended, and the exercise date and termination date of the related ZNWBA warrants were also extended to *March 31, 2026.* |
| H | On *November 12, 2024,* the Company extended the expiration date of the ZNWAA warrant by one (*1*) year. The new expiration date is *January 31, 2026.*  |
| I | On *May 19, 2025,* the Company issued 15,000,000 warrants to *one* participant, with an expiration date of *December 31, 2025.* |
| J | On *August 27, 2025,* the Company issued 9,019,652 warrants to *one* participant, with an expiration date of *December 31, 2025.* The warrant exercise price was reduced from *$.25* to *$.18.* |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *28*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *4* - Unproved Oil and Gas Properties, Full Cost Method**

Unproved oil and gas properties, under the full cost method, are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** |
| Excluded from amortization base: |  |  |
| Drilling costs, and other operational related costs | **10954** | 6426 |
| Capitalized salary costs | **2627** | 2546 |
| Capitalized interest costs | **1418** | 1418 |
| Legal and seismic costs, license fees and other preparation costs | **11929** | 11253 |
| Other costs | **39** | 39 |
|  | **26967** | 21682 |

---

During the *three* and *nine* months ended *September 30, 2025*, and *2024,* the Company did *not* record any post-impairment charges.

Changes in Unproved oil and gas properties during the *three* and *nine* months ended *September 30, 2025* and *2024* are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the three months ended*** | ***For the three months ended*** | ***For the nine months ended*** | ***For the nine months ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** | ***thousands*** | ***thousands*** |
| Excluded from amortization base: |  |  |  |  |
| Drilling costs, and other operational related costs | **681** | 2865 | **4528** | 3512 |
| Capitalized salary costs | **55** | 26 | **81** | 77 |
| Legal and seismic costs, license fees and other preparation costs | **413** | 327 | **676** | 807 |
|  | **1149** | 3218 | **5285** | 4396 |

---

---

| |
|:---|
| \* Inclusive of non-cash amounts of approximately $965,000, and $146,000 during the *three* months ended *September 30, 2025*, and *2024*, respectively |
| <br> \* Inclusive of non-cash amounts of approximately $700,000, and $856,000 during the *nine* months ended *September 30, 2025* and *2024*, respectively |

---

Please refer to Footnote *1* – Nature of Operations and Going Concern for more information about Zion's exploration activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *29*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *5* - Right of use lease assets and lease obligations**

The Company is a lessee in several non-cancellable operating leases for transportation and office space.

The table below presents the operating lease assets and liabilities recognized on the balance sheet as of *September 30, 2025* and *December 31, 2024*:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
|  | ***US$*** | ***US$*** |
|  | ***thousands*** | ***thousands*** |
| Operating lease assets | $**680** | $759 |
| Operating lease liabilities: |  |  |
| Current operating lease liabilities | $**124** | $107 |
| Non-current operating lease liabilities | $**612** | $637 |
| Total operating lease liabilities | $**736** | $744 |

---

The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term.

The Company's leases generally do *not* provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of *January 1, 2019* for operating leases that commenced prior to that date.

The Company's field office in Caesarea, Israel is under lease for 6,566 square feet.

The Company had an option to renew the lease for another five years from *February 1, 2024* to *January 31, 2029,* provided it was *not* in breach of the agreement, where it is required as well to furnish a notice of intent to exercise the option *six* months prior to termination of lease, and it furnishes a bank guarantee and insurance confirmation prior to commencement of the option period. The Company exercised the option to renew the lease for another seven years from *February 1, 2024* through *January 31, 2031,* when rent is to be paid on a monthly basis in the base amount of approximately NIS 46,500 per month (approximately $14,000) at the exchange rate in effect on the date of this report and is linked to an increase (but *not* a decrease) in the CPI.

The Company's weighted average remaining lease term and weighted average discount rate for operating leases as of *September 30, 2025* are:

---

| | |
|:---|:---|
|  | ***September 30,*** |
|  | ***2025*** |
| Weighted average remaining lease term (years) | **5.3** |
| Weighted average discount rate | **7.9%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *30*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *5* - Right of use lease assets and leases obligations** (cont'd)

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under non-cancellable operating leases with terms of more than *one* year to the total operating lease liabilities recognized on the condensed balance sheets as of *September 30, 2025*:

---

| | |
|:---|:---|
|  | ***US$*** |
|  | ***thousands*** |
| 2025 | **43** |
| 2026 | **169** |
| 2027 | **167** |
| 2028 | **167** |
| 2029 | **167** |
| Thereafter | **185** |
| Total undiscounted future minimum lease payments | **898** |
| Less: portion representing imputed interest | **(162)** |
| Total undiscounted future minimum lease payments | **736** |

---

Operating lease costs were $84,000 and $226,000 for the *three* and *nine* months ended *September 30, 2025*, respectively. Operating lease costs are included within general and administrative expenses on the statements of operations.

Operating lease costs were $75,000 and $224,000 for the *three* and *nine* months ended *September 30, 2024*, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was ($55,000) and $8,000 for the *three* and *nine* months ended *September 30, 2025*, respectively. These amounts are included in operating activities in the statements of cash flows.

Cash paid for amounts included in the measurement of operating lease liabilities was $55,000 and $223,000 for the *three* and *nine* months ended *September 30, 2024*, respectively.

Right-of-use assets obtained in exchange for new operating lease liabilities were $nil and $nil for the *three* and *nine* months ended *September 30, 2025*, respectively.

Right-of-use assets obtained in exchange for new operating lease liabilities were $nil and $829,000 for the *three* and *nine* months ended *September 30, 2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *31*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *6* - Commitments and Contingencies**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Litigation**

From time to time, the Company *may* be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.

On *June 3, 2025,* the Company received a notification via summons that it is being sued in the Superior Court of California, County of Los Angeles under the state's "Trap and Trace" law. The company has retained counsel in the state of California and this case is ongoing. Approximately $10,000 in legal expenses has been recognized in *2025.* We are *not* expecting to incur any additional expenses in *2025* as our outside counsel in California advises that the California courts are backlogged with similar cases and that a resolution to our case is *not* expected for months. We believe we have a strong case based on the facts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Recent Market Conditions** – **Israel-Hamas War, Israel-Hezbollah War, Israel-Iran War and the Russia-Ukraine War**

*<u>Israel-Hamas War</u>*

On *October 7, 2023,* Hamas, a militant terrorist organization in Gaza, infiltrated southern Israel, killing and injuring at least *one thousand* Israeli citizens. Roughly *250* Israeli hostages were then taken back to Gaza. This unprovoked attack led the nation of Israel to declare war on Hamas approximately *one* week later. Israel and Gaza subsequently entered into a multi-phase ceasefire involving the cessation of battles in exchange for release of Israeli hostages and Palestinian prisoners, but hostilities resumed pending release of the remaining Israeli hostages.

On or around *October 13, 2025,* following more than *two* years after the initial invasion by Hamas, a ceasefire was negotiated between Israel and Hamas. The ceasefire deal contains *three* phases and the *first* phase involves the release of all living and dead Israeli hostages held by Hamas, along with the release of approximately *1,950* Palestinian prisoners being held in Israel prisons. All of the *20* living hostages were released and some, but *not* all, of the remains of the dead hostages have been released to Israeli families. The next phase (phase *2*) of the ceasefire deal is underway and involves the disarmament of Hamas.

There is uncertainty as to the degree of stability that will be seen in the Gaza strip and the wider impact on hostilities in the region.

While we acknowledge that uncertainty, the Company is moving forward with its MJ-*01* recompletion activities (see note *1* for details).

*<u>Israel-Hezbollah War and Wider Hostilities</u>*

Immediately after the *October 7, 2023* Hamas attack on Israel, the terrorist organization Hezbollah (in Lebanon) began launching daily rockets into Israel. Over the course of the next several months, both Hezbollah and Israel traded rocket fire into the other country, but without engaging in a full war. During *Q3 2024,* both sides increased the frequency and number of missiles fired. In *September 2024,* Israel began a ground invasion into Lebanon. On or around *November 27, 2024,* Israel and Hezbollah signed a ceasefire agreement. As of the date of this report, both sides are holding to its terms.

*<u>Israel-Iran War</u>*

On *June 13, 2025,* Israel launched Operation Rising Lion by surprise attacks on key military and nuclear facilities in Iran. This was a targeted operation to roll back the Iranian threat to Israel's very survival. In the opening hours of the war, Israeli air force assassinated some of Iran's prominent military leaders and nuclear scientists, and damaged or destroyed Iran's air defenses and some of its nuclear and military facilities. Israel launched hundreds of airstrikes throughout the war. Iran retaliated with waves of missile and drone strikes against Israeli cities and military sites; over *550* ballistic missiles and more than *1,000* explosive drones were launched by Iran during the war. The Iran-allied Houthis in Yemen also fired several missiles at Israel. On the *ninth* day of the war the United States bombed *three* Iranian nuclear sites. On *June 24, 2025,* Israel and Iran agreed to a ceasefire. As of the date of this report, both sides are holding to its terms.

*<u>Russia-Ukraine War</u>*

Due to Russia's invasion of Ukraine, which began in *February 2022,* and the resulting sanctions and other actions against Russia and Belarus, there has been uncertainty and disruption in the global economy. Although the Russian war against Ukraine did *not* have a material adverse impact on the Company's financial results for the quarter ended *September 30, 2025*, at this time the Company is unable to fully assess the aggregate impact the Russian war against Ukraine *may* have on its business due to various uncertainties, which include, but are *not* limited to, the duration of the war, the war's effect on the global economy, future energy pricing, its impact to the businesses of the Company and actions that *may* be taken by governmental authorities related to the war.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Environmental and Onshore Licensing Regulatory Matters**

The Company is engaged in oil and gas exploration and production and *may* become subject to certain liabilities as they relate to environmental clean-up of well sites or other environmental restoration procedures and other obligations as they relate to the drilling of oil and gas wells or the operation thereof. Various guidelines have been published in Israel by the State of Israel's Petroleum Commissioner and Energy and Environmental Ministries as it pertains to oil and gas activities. Mention of these older guidelines was included in previous Zion filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *32*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *6* - Commitments and Contingencies** (cont'd)

The Company believes that these regulations will result in an increase in the expenditures associated with obtaining new exploration rights and drilling new wells. The Company expects that an additional financial burden could occur as a result of requiring cash reserves that could otherwise be used for operational purposes. In addition, these regulations are likely to continue to increase the time needed to obtain all of the necessary authorizations and approvals to drill and production test exploration wells.

As of *September 30, 2025*, and *December 31, 2024*, the Company accrued $nil and $nil for license regulatory matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Insurance Financing**

Effective *March 12, 2024,* the Company renewed its rig insurance policy with total premiums, taxes and fees for approximately $95,000. A cash down payment of approximately $38,000 was paid on *February 23, 2024.* Under the terms of the insurance financing, payments of approximately $9,000, which included interest at the rate of 13.99% per annum, were due each month for 10 months commencing on *April 12, 2024.* As of *September 30, 2025*, this was fully paid off.

Effective *November 18, 2024,* the Company renewed its *third* party liability policy in Israel with total premiums, taxes and fees for approximately $76,000. A cash down payment of approximately $20,000 was paid on *November 18, 2024.* Under the terms of the insurance financing, payments of approximately $5,000, which include interest at the rate of 12.9% per annum, are due each month for 11 months commencing on *December 16, 2024.* As of *September 30, 2025*, the outstanding balance was approximately $5,000. This policy was capitalized under Unproved Oil and Gas Properties.

Effective *December 3, 2024,* the Company renewed its Control of well ("COW") insurance policy in Israel with total premiums, taxes and fees for approximately $84,000. A cash payment of approximately $84,000 was paid on *December 3, 2024.* This policy was capitalized under Unproved Oil and Gas Properties.

Effective *December 28, 2024,* the Company renewed its D&O insurance policy with total premiums, taxes and fees for approximately $430,000. A cash down payment of approximately $41,000 was paid on *January 2, 2025.* Under the terms of the insurance financing, payments of approximately $39,000, which include interest at the rate of 12.9% per annum, are due each month for 10 months commencing on *January 28, 2025.* As of *September 30, 2025*, the outstanding balance was approximately $39,000.

Effective *March 12, 2025,* the Company renewed its rig insurance policy with total premiums, taxes and fees for approximately $119,000. A cash payment of approximately $119,000 was paid on *March 7, 2025.* This policy was capitalized under Unproved Oil & Gas Properties.

As of *September 30, 2025* and *December 31, 2024*, the Company had contractual obligations to pay for various lines of insurance, including directors and officers, rig and *third*-party liability. The balances for insurance financing were $44,000 and $490,000, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Bank Guarantees**

As of *September 30, 2025*, the Company provided Israeli-required bank guarantees to various governmental bodies (approximately $977,000) and others (approximately $105,000) with respect to its drilling operation in an aggregate amount of approximately $1,082,000. The (cash) funds backing these guarantees are held in restricted interest-bearing accounts in Israel and are reported on the Company's balance sheets as cash and cash equivalents – restricted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Vendor Concentration**

The Company's financial instruments that are exposed to a concentration of credit risk are accounts payable. At *September 30, 2025*, there were two suppliers that represent 10% or more of the Company's accounts payable balance. At *December 31, 2024*, there were three suppliers that represent 10% or more of the Company's accounts payable balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *33*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zion Oil & Gas, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Condensed Notes to Financial Statements (Unaudited)

**Note *6* - Commitments and Contingencies** (cont'd)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Risks**

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes *may* be the result of various factors, including interest rates, foreign exchange rates, commodity prices and/or equity prices. In the normal course of doing business, we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates.

*Foreign Currency Exchange Rate Risks.* A portion of our expenses, primarily labor expenses and certain supplier contracts, are denominated in New Israeli Shekels ("NIS"). As a result, we have significant exposure to the risk of fluctuating exchange rates with the U.S. Dollar ("USD"), our primary reporting currency. During the period *January 1, 2025* through *September 30, 2025*, the USD has fluctuated by approximately 9.4% against the NIS (the USD weakened relative to the NIS). In contrast, during the period *January 1, 2024* through *December 31, 2024*, the USD fluctuated by approximately 0.6% against the NIS (the USD strengthened relative to the NIS). Continued weakening of the US dollar against the NIS will result in higher operating costs from NIS denominated expenses. To date, we have *not* hedged any of our currency exchange rate risks, but we *may* do so in the future.

*Interest Rate Risk.* Our exposure to market risk relates to our cash and investments. We maintain an investment portfolio of short-term bank deposits and money market funds. The securities in our investment portfolio are *not* leveraged, and are, due to their very short-term nature, subject to minimal interest rate risk. We currently do *not* hedge interest rate exposure. Because of the short-term maturities of our investments, we do *not* believe that a change in market interest rates would have a significant negative impact on the value of our investment portfolio except for reduced income in a low-interest rate environment. As of *September 30, 2025*, we had cash, cash equivalents, and restricted cash of approximately $11,457,000. The weighted average annual interest rate related to our cash and cash equivalents for the *three* and *nine* months ended *September 30, 2025*, exclusive of funds at US banks that earn *no* interest, was approximately 3.0% and 2.9%, respectively.

The primary objective of our investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, we invest our excess cash in short-term bank deposits and money market funds that *may* invest in high quality debt instruments.

**Note *7* - Subsequent Events**

The Company has evaluated subsequent events through *November 10, 2025*, the date of filing of this Quarterly Report on Form *10*-Q, and determined that there have been *no* events that have occurred that would require adjustments to our disclosures in the condensed consolidated financial statements, other than the following:

(i) Approximately $931,000 was collected through the Company's DSPP program during the period *October 1, 2025* through *November 5, 2025*, which includes collection of the $359,000 stock subscription receivable at *September 30, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *34*

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**ITEM 2. MANAGEMENT**'**S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH OUR UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND THE RELATED NOTES TO THOSE STATEMENTS INCLUDED IN THIS FORM 10-Q. SOME OF OUR DISCUSSION IS FORWARD-LOOKING AND INVOLVES RISKS AND UNCERTAINTIES. FOR INFORMATION REGARDING RISK FACTORS THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, REFER TO THE DISCUSSION OF RISK FACTORS IN THE "DESCRIPTION OF BUSINESS" SECTION OF OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED December 31, 2024, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

**Forward-Looking Statements**

Certain statements made in this discussion are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may materially differ from actual results.

Forward-looking statements can be identified by terminology such as "may", "should", "expects", "intends", "anticipates", "believes", "estimates", "predicts", or "continue" or the negative of these terms or other comparable terminology and include, without limitation, statements regarding:

● the Israel-Hamas war which began in October 2023 and the impact of the negotiated October 2025 ceasefire will have on our exploration program;

● the Israel-Iran war which began and ended in June 2025 and its effect on our exploration program;

● the Israel-Hezbollah war which began in 2024, along with wider regional hostilities towards Israel, and their effect on our exploration program;

● the going concern qualification in our consolidated condensed financial statements;

● our ability to obtain new license areas to continue our exploration program;

● our liquidity and our ability to raise capital to finance our overall exploration and development activities within our license area;

● our ability to continue meeting the requisite continued listing requirements by OTCQB;

● interruptions, increased financial costs and other adverse impacts of the covid 19 coronavirus pandemic, the Israel-Hamas war, the Israel-Hezbollah war, the Israel-Iran war, and the Russia-Ukraine war on the drilling and testing of our petroleum exploration program and our capital raising efforts;

● our ability to explore for and develop natural gas and oil resources successfully and economically within a license area;

● our ability to maintain the exploration license rights to continue our petroleum exploration program;

● the availability of equipment, such as seismic equipment, drilling rigs, and production equipment as well as access to qualified personnel;

● the impact of governmental regulations, permitting and other legal requirements in Israel relating to onshore exploratory drilling;

● our estimates of the time frame within which future exploratory activities will be undertaken;

● changes in our exploration plans and related budgets;

● the quality of existing and future license areas with regard to, among other things, the existence of reserves in economic quantities;

● anticipated trends in our business;

● our future results of operations;

● our capital expenditure program;

● future market conditions in the oil and gas industry

● the demand for oil and natural gas, both locally in Israel and globally; and

● the impact of fluctuating oil and gas prices on our exploration efforts

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All references in this Quarterly Report to the "Company", "Zion", "we", "us", or "our", are to Zion Oil and Gas, Inc., a Texas corporation, and its wholly-owned subsidiaries, Zion Drilling, Inc. and Zion Drilling Services, Inc. described below.

**Current Exploration and Operation Efforts**

Zion Oil and Gas, Inc., a Texas corporation, is an oil and gas exploration company with a history of 25 years of oil and gas exploration in Israel. We were incorporated in Florida on April 6, 2000 and reincorporated in Delaware on July 9, 2003. The shareholders of Zion Oil & Gas, Inc. approved the redomestication of its incorporation to Texas on June 4, 2025. We completed our initial public offering in January 2007. Our common stock, par value $0.01 per share (the "Common Stock") currently trades on the OTCQB marketplace of OTC Markets, Inc. under the symbol "ZNOG" and our Common Stock warrant under the symbol "ZNOGW." On January 24, 2020, Zion incorporated a wholly owned subsidiary, Zion Drilling, Inc., originally as a Delaware corporation, but now a Texas corporation for the purpose of owning a drilling rig, related equipment and spare parts, and on January 31, 2020, Zion incorporated another wholly owned subsidiary, Zion Drilling Services, Inc., originally as a Delaware corporation, but now a Texas corporation to act as the contractor providing such drilling services. When Zion is not using the rig for its own exploration activities, Zion Drilling Services may contract with other operators in Israel to provide drilling services at market rates then in effect. On October 19, 2022, Zion incorporated a wholly owned subsidiary in Israel, Zion Drilling Israel Ltd, for the purpose of owning a drilling rig and related equipment and spare parts. On this date, the entity was created as a placeholder only. A bank account was created in November 2024 and a tax file was created in January 2025. Zion Drilling Israel LTD did not have any activities during the nine months ended September 30, 2025.

On September 14, 2023, the Israel Ministry of Energy approved a new Megiddo Valleys License 434 ("NMVL 434"), allowing for oil and gas exploration on approximately 75,000 acres or 302 square kilometers. This Exploration License 434 is valid for three years until September 13, 2026 with four potential 1-year extensions for a total of seven years until September 13, 2030. This NMVL 434 effectively supersedes our previous NML 428.

We continue our exploration focus here based on our studies as it appears to possess the key geologic ingredients of an active petroleum system with significant exploration potential. As previously announced, Zion is deploying new technologies and stimulation methods for its current re-entry into the MJ-01 well with the objective of potentially unlocking hydrocarbon flows in several identified key zones.

On February 21, 2024, members of the Supervisory Committee visited our rig site. During this visit, they interacted with staff from Zion Oil & Gas, our consultants and potential service providers. Some of these interactions occurred at Kibbutz Sde Eliyahu, while others were conducted through video conferencing with participants from the United States, Europe and the Middle East. Following these discussions, the Committee officially accepted our work plan for the MJ-01 re-completion project. This acceptance allowed us to sign agreements and secure mobilization dates with our service providers to commence and complete the project.

The initial phase of our recompletion project consisted of a category three inspection of the drilling rig, rigging down from MJ-02 and moving and rigging up over the MJ-01 well.

Stage two of the operation involved drilling out both the steel plugs along with 625 meters (about 2,050 feet) of cement plugs and re-conditioning the wellbore to allow unhindered access to the selected zones for testing.

After six years of inactivity in a well over three miles deep, the MJ-01 wellbore presented a challenging environment. The wellbore appeared to have experienced elastic and partial collapse of the casing in some areas. This led to the bottom hole assembly ("BHA") becoming stuck over 4,000 meters from surface. Attempts to overpull the BHA were unsuccessful, and the crew completed a backoff operation which left over 500 meters of the BHA remaining downhole. This is not an uncommon occurrence with oil and gas drilling operations, and the crew was unsuccessful in retrieving the remaining BHA with the tools that were on location.

Another delay arose out of the logistical challenges we face. The ongoing conflict in the region has impacted shipping routes, the timely arrival of necessary equipment, and created travel difficulties for our rig crews. Our operations require specialized rig crews who are not available in Israel.

In light of the combination of downhole, logistical, and crew challenges, as well as holidays, and the one-year remembrance of October 7, we temporarily paused active operations during Q4 2024. This was a necessary step to ensure the safety of our personnel and to ensure proper engineering and tools are brought to location to avoid lengthy delays waiting for additional tools should any be required once the job resumes.

Zion's rig crew arrived in Israel in February 2025 and completed critical maintenance and preparatory work. The rig, which was safely "warm stacked" in September 2024, underwent necessary checks for maintenance, including fluid changes, lubrication and greasing, and mechanical, electrical, and safety audits to ensure peak functionality. The rig crew drilled out the temporary plug at approximately 1,100 meters and set a permanent plug at the deeper part of the well, allowing for isolation of targeted zones for testing. Perforation and stimulation operations were successfully completed, with gas observed at surface during early flowback.

On June 10, 2025, we completed flowback operations at our Megiddo-Jezreel #1 well and have since temporarily shut it in and demobilized our crew. The last of our crew left the country just hours before the 12-day war with Iran. We analyzed the initial gas composition data which confirmed that our targeted perforation and stimulation procedures were successful. Gas reached the surface and shows characteristics consistent with a productive reservoir.

Since our July update, we have advanced planning for the next phase of operations in Israel. Our technical objective remains unchanged, which is to sidetrack the well and drill a lateral section into the identified target interval to enable multi-stage stimulation across multiple zones. The principal operational refinement is to begin this campaign from the MJ-02 well, located on the same pad as the MJ-01 well, just 7.5 meters away on surface and approximately 300 meters offset at depth. Both wellbores access the same target zone. Starting from MJ-02 allows us to begin in larger casing, use larger-diameter tools, and execute a two-stage drilling plan—providing greater flexibility to manage downhole contingencies and improving our chance of operational success.

Logistics remain challenging in Israel's onshore market, where most services and equipment must be imported with added time and cost. Despite providers being heavily contracted, we have secured key services such as drilling, mud, and cementing. Recent visa reforms and progress with ministry approvals are also positive steps forward.

We are preparing to mobilize the rig crew in January 2026, complete upgrades and site work in February, and begin drilling in March. Leveraging the existing wellbore gives us a strong head start, and while this type of lateral drilling is new to onshore Israel, our team is well-positioned to execute it successfully.

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While our MJ-01 re-completion project has faced a multitude of hurdles, including recent hostilities with Hamas, Hezbollah, Iran and Yemen, downhole issues and logistical challenges, we continue to move forward each time a safe opportunity permits continuation of operations. However, we will only move forward in coordination with Israeli authorities. We are actively monitoring the port situation to import the items needed to complete the current work program. We remain optimistic about making significant progress in the coming months.

**I-35 Drilling Rig & Associated Equipment**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
|  | **I-35** | **Rig** | **Other** |  |
|  | **Drilling** | **Spare** | **Drilling** |  |
|  | **Rig** | **Parts** | **Assets** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
| **Gross Assets:** | **thousands** | **thousands** | **thousands** | **thousands** |
| **December 31, 2024** | 6494 | 747 | 344 | 7585 |
| Asset Additions | **-** | **90** | **84** | **174** |
| Asset Disposals for Self-Consumption | **-** | **(52)** | **-** | **(52)** |
| **September 30, 2025** | **6494** | **785** | **428** | **7707** |
| **Accumulated Depreciation:** |  |  |  |  |
| **December 31, 2024** | 2538 |  | 269 | 2807 |
| Asset Depreciation | **476** | **-** | **61** | **537** |
| **September 30, 2025** | **3014** | **-** | **330** | **3344** |
| **Net Assets** | **3480** | **785** | **98** | **4363** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **I-35** | **Rig** | **Other** |  |
|  | **Drilling** | **Spare** | **Drilling** |  |
|  | **Rig** | **Parts** | **Assets** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
| **Gross Assets:** | **thousands** | **thousands** | **thousands** | **thousands** |
| **December 31, 2023** | 6494 | 608 | 442 | 7544 |
| Asset Additions | **-** | **178** | **-** | **178** |
| Asset Disposals | **-** | **-** | **(98)** | **(98)** |
| Asset Disposals for Self-Consumption | **-** | **(39)** | **-** | **(39)** |
| **December 31, 2024** | **6494** | **747** | **344** | **7585** |
| **Accumulated Depreciation:** |  |  |  |  |
| **December 31, 2023** | 1904 |  | 130 | 2034 |
| Asset Depreciation | **634** | **-** | **139** | **773** |
| **December 31, 2024** | **2538** | **-** | **269** | **2807** |
| **Net Assets** | **3956** | **747** | **75** | **4778** |

---

Zion's ability to fully undertake all of these aforementioned activities is subject to its raising the needed capital from its continuing offerings, of which no assurance can be provided.

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![image_001.jpg](image_001.jpg)

**Map 1. Zion**'**s New Megiddo License 434 as of** September 30, 2025**.**

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**Onshore Licensing, Oil and Gas Exploration and Environmental Guidelines**

The Company is engaged in oil and gas exploration and production and may become subject to certain liabilities as they relate to environmental cleanup of well sites or other environmental restoration procedures and other obligations as they relate to the drilling of oil and gas wells or the operation thereof. Various guidelines have been published in Israel by the State of Israel's Petroleum Commissioner, the Energy Ministry, and the Environmental Ministry in recent years as it pertains to oil and gas activities. Mention of these guidelines was included in previous Zion Oil & Gas filings.

We acknowledge that these new regulations are likely to increase the expenditures associated with obtaining new exploration rights and drilling new wells. The Company expects that additional financial burdens could occur as a result of the Ministry requiring cash reserves that could otherwise be used for operational purposes.

**Capital Resources Highlights**

We need to raise significant funds to finance the continued exploration efforts and maintain orderly operations. To date, we have funded our operations through the issuance of our securities and convertible debt. We will need to continue to raise funds through the issuance of equity and/or debt securities (or securities convertible into or exchangeable for equity securities). No assurance can be provided that we will be successful in raising the needed capital on terms favorable to us (or at all).

*The Dividend Reinvestment and Stock Purchase Plan*

On March 13, 2014, Zion filed a registration statement on Form S-3 that was part of a replacement registration statement that was filed with the SEC using a "shelf" registration process. The registration statement was declared effective by the SEC on March 31, 2014. On February 23, 2017, the Company filed a Form S-3 with the SEC (Registration No. 333-216191) as a replacement for the Form S-3 (Registration No. 333-193336), for which the three-year period ended March 31, 2017, along with the base Prospectus and Supplemental Prospectus. The Form S-3, as amended, and the new base Prospectus became effective on March 10, 2017, along with the Prospectus Supplement that was filed and became effective on March 10, 2017. The Prospectus Supplement under Registration No. 333-216191 describes the terms of the DSPP and replaces the prior Prospectus Supplement, as amended, under the prior Registration No. 333-193336.

On March 27, 2014, we launched our Dividend Reinvestment and Stock Purchase Plan (the "DSPP") pursuant to which stockholders and interested investors can purchase shares of the Company's Common Stock as well as units of the Company's securities directly from the Company. The terms of the DSPP are described in the Prospectus Supplement originally filed on March 31, 2014 (the "Original Prospectus Supplement") with the Securities and Exchange Commission ("SEC") under the Company's effective registration Statement on Form S-3, as thereafter amended.

Please see Footnote 3D ("Dividend Reinvestment and Stock Purchase Plan ("DSPP")), which is a part of this Form 10-Q filing, for details about specific stock purchase and unit programs, dates, and filings during the years 2024 and 2025.

For the three and nine months ended September 30, 2025, approximately $180,000 and $359,000, respectively, were recorded under the Company's Statement of Changes in Stockholders' Equity as Subscriptions Receivables. Approximately $156,000 of the $359,000 receivable at September 30, 2025 pertains to an exercise of stock options by a former director. These funds were later received in October 2025.

For the three and nine months ended September 30, 2024, approximately $985,000 and $985,000, respectively, were recorded under the Company's Statement of Changes in Stockholders' Equity as Subscriptions Receivables.

For the three and nine months ended September 30, 2025, approximately $4,791,000 and $18,571,000, respectively, were raised under the DSPP program. The Company did not pay any equity issuance costs for the three and nine months ended September 30, 2025

For the three and nine months ended September 30, 2024, approximately $3,692,000 and $12,160,000 were raised under the DSPP program, respectively. The $3,692,000 and $12,160,000 figures were reduced by $536,000 and $2,299,000, respectively, in equity issuance costs to an outside party resulting in net cash provided of $3,156,000 and $9,861,000, respectively.

The warrants balances at December 31, 2024 and transactions since January 1, 2025 are shown in the table below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Warrant** | **Outstanding** |  |  |  | **Outstanding** |
|  | **Exercise** | **Termination** | **Balance,** | **Warrants** | **Warrants** | **Warrants** | **Balance,** |
| **Warrants** | **Price** | **Date** | **December 31, 2024** | **Issued** | **Exercised** | **Expired** | **September 30, 2025** |
| ZNWAA | $2.00 | 01/31/2026 | 1498804 |  |  |  | 1498804 |
| ZNWAM | $0.05 | 03/31/2025 | 4376000 |  | (4376000) |  |  |
| ZNWAQ | $0.05 | 03/31/2025 | 23428348 |  | (23428348) |  |  |
| ZNWBA | $0.25 | 03/31/2026 |  | 1177950 |  |  | 1177950 |
| ZNWAT | $0.18 | 12/31/2025 |  | 9019652 |  |  | 9019652 |
| ZNWBB | $0.25 | 12/31/2025 |  | 15000000 |  |  | 15000000 |
| Outstanding warrants |  |  | 29303152 | 25197602 | (27804348) |  | 26696406 |

---

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**Principal Components of our Cost Structure**

Our operating and other expenses primarily consist of the following:

● Impairment of Unproved Oil and Gas Properties: Impairment expense is recognized if a determination is made that a well will not be commercially productive. The amounts include amounts paid in respect of the drilling operations as well as geological and geophysical costs and various amounts that were paid to Israeli regulatory authorities.

● General and Administrative Expenses: Overhead, including payroll and benefits for our corporate staff, costs of managing our exploratory operations, audit and other professional fees, and legal compliance is included in general and administrative expenses. General and administrative expenses also include non-cash stock-based compensation expense, investor relations related expenses, lease and insurance and related expenses.

● Depreciation, Depletion, Amortization and Accretion: The systematic expensing of the capital costs incurred to explore for natural gas and oil represents a principal component of our cost structure. As a full cost company, we capitalize all costs associated with our exploration, and apportion these costs to each unit of production, if any, through depreciation, depletion and amortization expense. As we have yet to have production, the costs of abandoned wells are written off immediately versus being included in this amortization pool.

**Going Concern Basis**

Since we have limited capital resources, no revenue to date and a loss from operations, our consolidated condensed financial statements have been prepared on a going concern basis, which contemplates realization of assets and liquidation of liabilities in the ordinary course of business. The appropriateness of using the going concern basis is dependent upon our ability to obtain additional financing or equity capital and, ultimately, to achieve profitable operations. Therefore, there is substantial doubt about our ability to continue as a going concern for one year from the date the financials were issued. The consolidated condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Israel-Hamas War**

The nation of Israel declared war on Hamas following the October 7, 2023 invasion by Hamas into many southern Israeli communities, killing and injuring thousands and taking of over 200 Israeli hostages into Gaza. Israel formed a war time emergency government with its primary focus on defending its homeland. As part of the war effort, Israel activated a large number of reservists. Our geologist in Israel, Nadav Navon, was called into service for a month or two in late 2023. In 2024, he was called up again to serve for a period of months. He has since returned back to work. As a result of Nadav's absence, his workload was handled by our US based geologist Lee Russell. We have been able to keep up with the geological workload without any issues.

Our operations in Israel take place at the wellsite in north central Israel, away from the primary location of the war in southern Israel. Our drilling rig, pad site, employees and service providers were safe throughout 2024 and through the date of this report in November 2025.

Throughout 2024, there were daily battles occurring in the Gaza Strip. Israel was largely successful in winning the battles, including taking operational control of nearly all areas of Gaza and killing many top leaders of Hamas.

On or about January 19, 2025, Israel and Hamas agreed to a ceasefire. After that date, various agreements have been reached between Israel and Hamas regarding the release of Israeli hostages and the simultaneous release of Hamas prisoners while maintaining a ceasefire. However, hostilities began again pending release of the remaining Israeli hostages.

On or around October 13, 2025, following more than two years after the initial invasion by Hamas, a ceasefire was negotiated between Israel and Hamas. The ceasefire deal contains three phases and the first phase involves the release of all living and dead Israeli hostages held by Hamas, along with the release of approximately 1,950 Palestinian prisoners being held in Israel prisons. All of the 20 living hostages were released and some, but not all, of the remains of the dead hostages have been released to Israeli families. The next phase (phase 2) of the ceasefire deal is underway and involves the disarmament of Hamas.

There is uncertainty as to the degree of stability that will be seen in the Gaza strip and the wider impact on hostilities in the region.

**Israel-Hezbollah War** 

Throughout the first 4-6 months of 2024, the IDF ("Israeli Defense Forces") and Hezbollah (a terrorist organization based in Lebanon) exchanged near daily missile and rocket fire at Israel's northern border. During Q3 2024, the IDF carried out multiple strikes against the Hezbollah leadership and was very successful.

On October 1, 2024, Israel invaded Lebanon to attack Hezbollah directly. Israel and the IDF were successful including killing much of the top leadership of Hezbollah.

On November 27, 2024, Israel and Hezbollah signed a ceasefire agreement.

So far in 2025, the ceasefire is holding with only occasional minor rocket fire being exchanged.

**Israel-Iran War** 

On June 13, 2025, Israel launched Operation Rising Lion by surprise attacks on key military and nuclear facilities in Iran. This was a targeted operation to roll back the Iranian threat to Israel's very survival In the opening hours of the war, Israeli air force assassinated some of Iran's prominent military leaders and nuclear scientists, and damaged or destroyed Iran's air defenses and some of its nuclear and military facilities. Israel launched hundreds of airstrikes throughout the war. Iran retaliated with waves of missile and drone strikes against Israeli cities and military sites; over 550 ballistic missiles and more than 1,000 explosive drones were launched by Iran during the war. The Iran-allied Houthis in Yemen also fired several missiles at Israel. On the ninth day of the war the United States bombed three Iranian nuclear sites. On June 24, 2025, Israel and Iran agreed to a ceasefire.

As of the date of this report, both sides are holding to its terms.

**Russia** – **Ukraine War**

Due to Russia's invasion of Ukraine, which began in February 2022, and the resulting sanctions and other actions against Russia and Belarus, there has been uncertainty and disruption in the global economy. Although the Russian war against Ukraine did not have a material adverse impact on the Company's financial results for the year ended December 31, 2024, and the quarter ended September 30, 2025, at this time the Company is unable to fully assess the aggregate impact the Russian war against Ukraine will have on its business due to various uncertainties, which include, but are not limited to, the duration of the war, the war's effect on the global economy, future energy pricing, its impact to the businesses of the Company, and actions that may be taken by governmental authorities related to the war.

**Critical Accounting Policies**

Management's discussion and analysis of financial condition and results of operations is based upon our consolidated condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated condensed financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expense during the reporting period.

We have identified the accounting principles which we believe are most critical to the reported financial status by considering accounting policies that involve the most complex of subjective decisions or assessment.

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*Impairment of Oil and Gas Properties*

We follow the full-cost method of accounting for oil and gas properties. Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in income from continuing operations before income taxes, and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

Our oil and gas properties represent an investment in unproved properties. These costs are excluded from the amortized cost pool until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The amount of any impairment is charged to expense since a reserve base has not yet been established. A further impairment requiring a charge to expense may be indicated through evaluation of drilling results, relinquishing drilling rights or other information.

Abandonment of properties is accounted for as adjustments to capitalized costs. The net capitalized costs are subject to a "ceiling test" which limits such costs to the aggregate of the estimated present value of future net revenues from proved reserves discounted at ten percent based on current economic and operating conditions, plus the lower of cost or fair market value of unproved properties. The recoverability of amounts capitalized for oil and gas properties is dependent upon the identification of economically recoverable reserves, together with obtaining the necessary financing to exploit such reserves and the achievement of profitable operations.

During the nine months ended September 30, 2025 and 2024, the Company did not record any post-impairment charges.

The total net book value of our unproved oil and gas properties under the full cost method is $26,967,000 and $21,682,000 at September 30, 2025 and at December 31, 2024, respectively.

*Asset Retirement Obligation*

We record a liability for asset retirement obligation at fair value in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived assets.

*Fair Value Considerations*

We follow ASC 820, "Fair Value Measurements and Disclosures," as amended by Financial Accounting Standards Board (FASB) Financial Staff Position (FSP) No. 157 and related guidance. Those provisions relate to the Company's financial assets and liabilities carried at fair value and the fair value disclosures related to financial assets and liabilities. ASC 820 defines fair value, expands related disclosure requirements, and specifies a hierarchy of valuation techniques based on the nature of the inputs used to develop the fair value measures. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, assuming the transaction occurs in the principal or most advantageous market for that asset or liability.

There are three levels of inputs to fair value measurements - Level 1, meaning the use of quoted prices for identical instruments in active markets; Level 2, meaning the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; and Level 3, meaning the use of unobservable inputs. We use Level 1 inputs for fair value measurements whenever there is an active market, with actual quotes, market prices, and observable inputs on the measurement date. We use Level 2 inputs for fair value measurements whenever there are quoted prices for similar securities in an active market or quoted prices for identical securities in an inactive market. We did not use unobservable (level 3) inputs for fair value measurements at September 30, 2025 and at December 31, 2024, respectively.

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**RESULTS OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(US $ in thousands)** | **(US $ in thousands)** | **(US $ in thousands)** | **(US $ in thousands)** |
| Operating costs and expenses: |  |  |  |  |
| General and administrative expenses | **1117** | **1143** | **3319** | **3519** |
| Other | **576** | **632** | **2070** | **2113** |
| Subtotal Operating costs and expenses | **1693** | **1775** | **5389** | **5632** |
| Other expense (income), net | **26** | **16** | **(84**) | **(15**) |
| Net loss | **1719** | **1791** | **5305** | **5617** |

---

*Revenue.* We currently have no revenue generating operations.

*Operating costs and expenses.* Operating costs and expenses for the three and nine months ended September 30, 2025 were $1,693,000 and $5,389,000, respectively, compared to $1,775,000 and $5,632,000, respectively, for the three and nine months ended September 30, 2024. Operating costs and expenses for the three months ended September 30, 2025 were $82,000 (4.6%) lower compared to the three months ended September 30, 2024. Operating costs and expenses for the nine months ended September 30, 2025 were $243,000 (4.3%) lower compared to the nine months ended September 30, 2024.

*General and administrative expenses.* General and administrative expenses ("G&A expenses") for the three and nine months ended September 30, 2025 were $1,117,000 and $3,319,000, respectively, compared to $1,143,000 and $3,519,000, respectively, for the three and nine months ended September 30, 2024. This expense grouping includes salaries, benefits, stock option expenses and professional fees. G&A expenses were lower by $26,000, or (2.3%), during the most recent quarter versus the prior year quarter primarily due to lower expenses associated with stock option grants. G&A expenses decreased $200,000, or (5.7%), during the first nine months of 2025 as compared to the nine months of 2024, primarily due to lower expenses associated with stock option grants.

*Other expense.* Other expenses during the three and nine months ended September 30, 2025 were $576,000 and $2,070,000, respectively, compared to $632,000 and $2,113,000, respectively, for the three and nine months ended September 30, 2024. Other general and administrative expenses are comprised of non-cash compensation and non-professional expenses incurred. Other expenses decreased by $56,000, or about (8.9%), and by $43,000, or about (2.0%), for the three and nine months ended September 30, 2025, respectively. Zion incurred lower marketing and investor relations expenses and lower insurance premium expenses.

*Other expense (income), net*. Other expense (income) during the three and nine months ended September 30, 2025 were $26,000 and ($84,000), respectively, compared to $16,000 and ($15,000), respectively, for the three and nine months ended September 30, 2024. The expenses/income in this category are comprised of foreign currency exchange costs, primarily the New Israeli Shekel (NIS) to the US dollar, and the financial expenses/income. Zion earned higher interest income during the three and nine months ended September 30, 2025, due to higher average cash balances.

*Net Loss*. Net losses for the three and nine months ended September 30, 2025 were $1,719,000 and $5,305,000 compared to $1,791,000 and $5,617,000 for the three and nine months ended September 30, 2024.

**Liquidity and Capital Resources**

Liquidity is a measure of a company's ability to meet potential cash requirements. As discussed above, we have historically met our capital requirements through the issuance of common stock as well as proceeds from the exercise of warrants and options to purchase common shares. As disclosed on our Balance Sheet, the company has 1,600,000,000 shares of authorized common stock and 1,139,174,393 shares issued as of September 30, 2025. We increased our authorized shares during the past proxy season in 2025.

Our ability to continue as a going concern is dependent upon obtaining the necessary financing to complete further exploration and development activities and generate profitable operations from our oil and natural gas interests in the future. Our current operations are dependent upon the adequacy of our current assets to meet our current expenditure requirements and the accuracy of management's estimates of those requirements. Should those estimates be materially incorrect, our ability to continue as a going concern will be impaired. Our financial statements for the nine months ended September 30, 2025 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We have incurred a history of operating losses and negative cash flows from operations. Therefore, there is substantial doubt about our ability to continue as a going concern for one year from the date the financials were issued.

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At September 30, 2025, we had approximately $10,373,000 in cash and cash equivalents compared to $2,272,000 at December 31, 2024, which does not include any restricted funds. Our working capital (current assets minus current liabilities) was $10,187,000 at September 30, 2025 and $1,702,000 at December 31, 2024.

As of September 30, 2025, we provided bank guarantees to various governmental bodies (approximately $977,000) and others (approximately $105,000) in respect of our drilling operation in the aggregate amount of approximately $1,082,000. The (cash) funds backing these guarantees are held in restricted interest-bearing accounts in Israel and are reported on the Company's balance sheets as cash and cash equivalents - restricted.

During the nine months ended September 30, 2025, cash used in operating activities totaled $4,613,000. Cash provided by financing activities during the nine months ended September 30, 2025 was $18,126,000 and is primarily attributable to proceeds received from the Dividend Reinvestment and Stock Purchase Plan (the "DSPP" or the "Plan"). Net cash used in investing activities such as unproved oil and gas properties, equipment and spare parts was $5,392,000 for the nine months ended September 30, 2025.

During the nine months ended September 30, 2024, cash used in operating activities totaled $4,745,000. Cash provided by financing activities during the nine months ended September 30, 2024 was $9,346,000 and is primarily attributable to proceeds received from the Dividend Reinvestment and Stock Purchase Plan (the "DSPP" or the "Plan"). Net cash used in investing activities such as unproved oil and gas properties, equipment and spare parts was $4,389,000 for the nine months ended September 30, 2024.

Accounting standards require management to evaluate our ability to continue as a going concern for a period of one year subsequent to the date of the filing of this Form 10-Q. We expect to incur additional significant expenditures to further our exploration and development programs. While we raised approximately $931,000 during the period October 1, 2025 through November 5, 2025, which includes collection of the $359,000 stock subscription receivable at September 30, 2025, we will need to raise additional funds in order to continue our exploration and development activities in our license area. Additionally, we estimate that, when we are not actively drilling a well, our expenditures are approximately $600,000 per month excluding exploratory operational activities. However, when we are actively drilling a well, we estimate an additional minimum expenditure of approximately $2,500,000 per month. The above estimates are subject to change. Subject to the qualifications specified below, management believes that our existing cash balance, coupled with anticipated proceeds under the DSPP, will be sufficient to finance our plan of operations through June 2026.

Similar uncertainties are posed by the Israel-Hamas war, the Israel-Hezbollah war, as well as the Israel-Iran war. The duration of those wars and the impacts on the region and world are not fully known at this point in time.

No assurance can be provided that we will be able to raise the needed operating capital.

Even if we raise the needed funds, there are factors that can nevertheless adversely impact our ability to fund our operating needs, including (without limitation), the potential impact of the Israel-Hamas war, the Israel-Hezbollah war, and Israel-Iran war, the potential actions of other hostile parties in the region, unexpected or unforeseen cost overruns in exploratory work in existing license areas, the costs associated with extended delays in undertaking the required exploratory work, and plugging and abandonment activities which is typical of what we have experienced in the past.

The financial information contained in these consolidated condensed financial statements has been prepared on a basis that assumes that we will continue as a going concern for one year from the date the financials were issued, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. This financial information and these consolidated condensed financial statements do not include any adjustments that may result from the outcome of this uncertainty.

***Off-Balance Sheet Arrangements***

We do not currently use any off-balance sheet arrangements to enhance our liquidity or capital resource position, or for any other purpose.

***Recently Issued Accounting Pronouncements***

In November 2023, the FASB issued ASU No. 2023-07, "*Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*". The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments will be applied retrospectively to all prior periods presented in the financial statements. Zion adopted this ASU effective January 1, 2023. The adoption of this ASU did not have any impact on its consolidated financial statements.

*Other Recent Accounting Pronouncements*

The Company does not believe that the adoption of any recently issued accounting pronouncements in 2025 had a significant impact on our financial position, results of operations, or cash flow.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes may be the result of various factors, including interest rates, foreign exchange rates, commodity prices and/or equity prices. In the normal course of doing business, we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates.

*Foreign Currency Exchange Rate Risks.* A portion of our expenses, primarily labor expenses and certain supplier contracts, are denominated in New Israeli Shekels ("NIS"). As a result, we have significant exposure to the risk of fluctuating exchange rates with the U.S. Dollar ("USD"), our primary reporting currency. During the period January 1, 2025 through September 30, 2025, the USD has fluctuated by approximately 9.4% against the NIS (the USD weakened relative to the NIS). In the contrast, during the period January 1, 2024 through December 31, 2024, the USD fluctuated by approximately 3.1% against the NIS (the USD strengthened relative to the NIS). Continued weakening of the US dollar against the NIS will result in higher operating costs from NIS denominated expenses. To date, we have not hedged any of our currency exchange rate risks, but we may do so in the future.

*Interest Rate Risk.* Our exposure to market risk relates to our cash and investments. We maintain an investment portfolio of short-term bank deposits and money market funds. The securities in our investment portfolio are not leveraged, and are, due to their very short-term nature, subject to minimal interest rate risk. We currently do not hedge interest rate exposure. Because of the short-term maturities of our investments, we do not believe that a change in market interest rates would have a significant negative impact on the value of our investment portfolio except for reduced income in a low-interest rate environment. At September 30, 2025 we had cash, cash equivalents, and restricted cash of approximately $11,457,000. The weighted average annual interest rate related to our cash and cash equivalents for the three and nine months ended September 30, 2025, exclusive of funds at US banks that earn no interest, was approximately 3.0% and 2.9%, respectively.

The primary objective of our investment activities is to preserve principal while at the same time maximizing yields without significantly increasing risk. To achieve this objective, we invest our excess cash in short-term bank deposits and money market funds that may invest in high quality debt instruments.

**ITEM 4. CONTROLS AND PROCEDURES**

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time period specified in the SEC's rules and forms. As of September 30, 2025, our chief executive officer and our chief financial officer conducted an evaluation of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures were not effective as of September 30, 2025, due to a significant deficiency in our controls and procedures related solely to the prohibited advance by the Company of a $30,000 hardship loan to an executive vice president referred to in Note 2G of the financial statements accompanying this report. The chief executive officer and the chief financial officer intend to consult with an external advisor to take steps to avoid any future recurrence of a prohibited action.

**Changes in Internal Control over Financial Reporting**

There were no changes in internal controls over financial reporting that occurred during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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**PART II**—**OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

**Litigation**

From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.

On June 3, 2025, the Company received a notification via summons that it is being sued in the Superior Court of California, County of Los Angeles under the state's "Trap and Trace" law. The company has retained counsel in the state of California and this case is ongoing. Approximately $10,000 in legal expenses has been recognized in 2025. We are not expecting to incur any additional expenses in 2025 as our outside counsel in California advises that the California courts are backlogged with similar cases and that a resolution to our case is not expected for months. We believe we have a strong case based on the facts.

**ITEM 1A. RISK FACTORS**

During the quarter ended September 30, 2025, there were no material changes to the risk factors previously reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

**ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

None.

**ITEM *5.* OTHER INFORMATION**

None.

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**ITEM 6. EXHIBITS**

**Exhibit Index**:

---

| | |
|:---|:---|
| 31.1 | [<u>Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 under the Exchange Act</u>](ex_858338.htm) |
| 31.2 | [<u>Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 under the Exchange Act</u>](ex_858339.htm) |
| 32.1 | [<u>Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished only)</u>](ex_858340.htm) |
| 32.2 | [<u>Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished only)</u>](ex_858341.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| **ZION OIL & GAS, INC.** | **ZION OIL & GAS, INC.** | | |
| (Registrant) | (Registrant) |  |  |
| By: | /s/ Robert W.A. Dunn | By: | /s/ Michael B. Croswell Jr. |
|  | Robert W. A. Dunn |  | Michael B. Croswell Jr. |
|  | Chief Executive Officer |  | President and Chief Financial Officer |
|  | (Principal Executive Officer) |  | (Principal Financial and Accounting Officer) |
| Date: | November 10, 2025 | Date: | November 10, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)**

I, Robert W. A. Dunn, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Zion Oil & Gas, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: November 10, 2025 |
| /s/ Robert W. A. Dunn |
| Robert W. A. Dunn, Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)**

I, Michael B. Croswell Jr, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Zion Oil & Gas, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: November 10, 2025 |
| /s/ Michael B. Croswell Jr. |
| Michael B. Croswell Jr, President and Chief Financial Officer |
| (Principal Financial and Accounting Officer)  |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Zion Oil and Gas, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, I, Robert W.A. Dunn, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.

---

| |
|:---|
| /s/ Robert W.A. Dunn |
| Robert W. A. Dunn |
| Chief Executive Officer |
| (Principal Executive Officer) |
| November 10, 2025 |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Zion Oil and Gas, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, I, Michael B. Croswell Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.

---

| |
|:---|
| /s/ Michael B. Croswell Jr. |
| Michael B. Croswell Jr. |
| President and Chief Financial Officer |
| (Principal Financial and Accounting Officer) |
| November 10, 2025 |

---