Zion Oil & Gas ZNOG

Zion Oil and Gas, Inc. is an oil and gas exploration company focused on onshore activities in Israel. The company has conducted exploration operations for 25 years and holds the Megiddo Valleys License 434, which covers approximately 75,000 acres and is valid until September 13, 2026 with potential extensions through 2030. Zion Oil and Gas, Inc. engages in the acquisition, exploration, and development of oil and gas reserves, with all associated costs capitalized under the full-cost method of accounting. The company does not currently have any producing wells or revenue from oil and gas sales.

Zion Oil and Gas, Inc. does not generate revenue from oil and gas operations as it has not yet achieved commercial production. The company funds its exploration and development activities through the issuance of securities and proceeds from its Dividend Reinvestment and Stock Purchase Plan. For the six months ended June 30, 2026, the company raised approximately $11,394,000 under this plan. Zion Oil and Gas, Inc. relies on external financing to cover operating costs, including general and administrative expenses, depreciation, and costs related to unproved oil and gas properties.

The company operates through the following segments:

• Zion Drilling, Inc.: This segment owns the JB-1 drilling rig, related equipment, and spare parts. The rig was purchased in March 2020 for $5.6 million in cash and has been recertified and recommissioned in accordance with regulatory requirements. The JB-1 drilling rig is used for Zion’s own exploration activities and may be contracted to other operators in Israel when not in use by the company. Zion Drilling, Inc. was re-domesticated from a Delaware to a Texas corporation on May 14, 2025.
• Zion Drilling Services, Inc.: This segment acts as the contractor providing drilling services using the equipment owned by Zion Drilling, Inc. When Zion Oil and Gas, Inc. is not using the rig for its own exploration, Zion Drilling Services, Inc. may contract with other operators in Israel to provide drilling services at market rates. The entity was incorporated on January 31, 2020 as a Delaware corporation and re-domesticated to a Texas corporation on May 14, 2025. Zion Drilling Services, Inc. enables the company to generate service revenue from third-party drilling contracts in Israel.
• Zion Drilling Israel Ltd: This segment was incorporated on October 19, 2022 as a wholly owned subsidiary in Israel to own a drilling rig and related equipment. The entity was created as a placeholder, with a bank account established in November 2024 and a tax file created in January 2025. Zion Drilling Israel Ltd did not have any activities during the six months ended June 30, 2026. The segment remains inactive and has not contributed to operations or revenue to date.

Zion Oil and Gas, Inc. operates as a pure-play exploration company in the upstream oil and gas sector within Israel, where it competes with other firms holding exploration licenses issued by the Israel Ministry of Energy. The company’s competitive position is defined by its long-standing presence in the region, its technical capabilities through its drilling rig and services subsidiaries, and its specific license holdings such as the Megiddo Valleys License 434. Zion Oil and Gas, Inc. does not currently produce oil or gas, placing it in the pre-revenue exploration phase alongside other junior exploration firms in the area.

Zion Oil and Gas, Inc. serves no customers for oil or gas sales as it has not achieved production or commercial operations. The company’s Zion Drilling Services, Inc. segment may provide drilling services to other operators in Israel when the rig is not used for internal exploration, though no specific customer names are disclosed in the filing. The company’s primary stakeholders include investors who fund operations through securities offerings and the Dividend Reinvestment and Stock Purchase Plan.