Zion Oil & Gas Inc
Zion Oil & Gas is a U.S.-based oil and gas exploration company focused on onshore exploration in Israel. Through its wholly owned subsidiaries, it also owns and operates drilling-related assets and services used in its exploration program and, when available, may provide drilling services to other operators in Israel.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueExploration rights, geological work, drilling, and testing to find hydrocarbons in licensed areas.
Contract drilling services provided through the company's drilling subsidiary when the rig is not in use.
Ownership and maintenance of drilling rig assets, spare parts, and related equipment.
Customers
Zion's primary economic counterparties are not traditional product buyers but the state authorities that grant and regulate exploration licenses in Israel. Its commercial activity also depends on capital markets investors and debt providers that fund exploration, plus potential third-party operators in Israel that may hire its drilling services. If exploration succeeds, the company would ultimately sell hydrocarbons into the energy market, but the reports provided emphasize exploration and drilling rather than production sales.
The company depends on the Israel Ministry of Energy and related agencies for exploration licenses, permits, and operating approvals.
Public equity investors and warrant holders provide funding for exploration and corporate operations.
Debt and convertible securities investors finance drilling, license work, and general corporate needs.
Other operators in Israel may contract for drilling services when Zion's rig is available.
Strategy
Zion's strategy is centered on advancing its Israeli onshore exploration license through drilling, testing, and license maintenance. It also seeks to preserve optionality by owning drilling assets that can support its own program and potentially generate third-party drilling revenue in Israel. Because the business is capital intensive and pre-commercial, access to financing and continued license rights are core strategic priorities.
The company's value creation depends on identifying commercial hydrocarbons within its license area.
Owning drilling assets supports exploration control and may create third-party service revenue.
Exploration programs require ongoing capital before any production cash flow exists.
Geography
Zion is incorporated in the United States and trades on the OTCQB market, but its exploration focus is in Israel. The company's license area is the Megiddo Valleys License 434 in northern Israel, and its drilling and operational exposure is therefore concentrated in one country and one regulatory regime. That geographic concentration makes the business highly sensitive to Israeli permitting, security conditions, and local energy policy.
Risks
Zion faces high exploration risk because its business depends on finding commercially viable oil or gas in a single license area. It also faces financing, regulatory, geopolitical, and operational risks, including permit requirements, security disruptions in Israel, and the possibility that oil and gas prices weaken the economics of exploration. As a small-cap exploration company, it is also exposed to dilution and continued listing/compliance risk.
The company is searching for hydrocarbons and may not discover commercial quantities.
Exposure: Megiddo Valleys License 434
Operations are funded through securities and convertible debt, requiring ongoing external capital.
Exposure: Equity and convertible debt financing
Exploration depends on permits, environmental rules, and maintaining license rights.
Exposure: Israel Ministry of Energy and environmental authorities
War, sanctions, and local security events can interrupt drilling, logistics, and capital raising.
Exposure: Israel and broader Middle East
Oil and gas prices influence the economics of exploration and future development decisions.
Exposure: Global energy markets
Accounting
Judgemental itemsExploration assets must be written down if expected recoverable value declines.
Impact: Can materially reduce asset values and increase expenses
The company owns drilling assets that require depreciation and recoverability assessment.
Impact: Affects operating expense and balance sheet carrying value
Funding has historically come from securities and convertible instruments.
Impact: Can affect interest expense, equity dilution, and liabilities
Oil and gas operations may create cleanup and site restoration liabilities.
Impact: Can require accruals and future cash outflows
Similar listed companies
Publicly listed companies with a comparable business focus.
Zions Bancorporation N.A
ZION · National Commercial Banks
Zions Bancorporation, National Association is a U.S.
EON Resources Inc.
EONR-WT · Crude Petroleum & Natural Gas
United States Antimony Corporation
UAMY · Primary Smelting & Refining of Nonferrous Metals
Northern Minerals & Exploration LTD.
NMEX · Gold and Silver Ores
Trio Petroleum Corp
TPET · Crude Petroleum & Natural Gas
Trio Petroleum Corp is a U.S.-based oil and gas exploration and development company focused on crude petroleum and natural gas properties.
Nabors Industries Ltd
NBR · Drilling Oil & Gas Wells
Last updated: 24/09/2026