Recent developments highlight Zion Oil & Gas's progress in regulatory approvals, operational activities, and market status upgrades, alongside ongoing exploration efforts in Israel.

• On February 10, 2026, Zion Oil & Gas was welcomed to the OTCQX marketplace, reflecting an upgrade in its trading status [N1].
• In May 2025, the company announced that gas reached the surface during initial flowback operations onshore in Israel, confirming successful stimulation procedures [N2].
• Renewed operations for testing and recompletion of the MJ-01 well in Israel were underway as of February 2025 [N3].
• Recompletion operations for the MJ-01 well officially started in June 2024 [N4].
• The company gained full acceptance of its work plan by the Israeli Supervisory Committee in February 2024 [N5].
• Regulatory approval was received in December 2023 for a strategic recompletion project in Israel [N6].
• In September 2023, Zion Oil & Gas was awarded the new Megiddo Valleys License 434, allowing ongoing oil and gas exploration in Israel [N7].
• Significant progress was announced in May 2023, including the launch of a new unit program [N8].

Zion Oil & Gas has demonstrated operational progress with successful recompletion and stimulation of wells MJ-01 and MJ-02, including gas reaching the surface consistent with a productive reservoir. The company holds a significant exploration license area in Israel with potential for hydrocarbon discoveries. Its ownership of drilling assets and services subsidiaries provides operational flexibility. The recent upgrade to OTCQX trading status may enhance investor visibility and access to capital. Continued regulatory approvals and logistical advancements support ongoing exploration activities.

The company has no current revenues and has incurred consistent net losses, reflecting the high-risk nature of exploratory oil and gas operations. Geopolitical instability in Israel, including ongoing conflicts, poses risks to personnel safety, operational continuity, and supply chain reliability. Logistical challenges such as visa restrictions and import delays have caused operational pauses. The company’s ability to continue depends heavily on raising additional capital, which may be uncertain. Regulatory and environmental compliance costs are increasing, potentially impacting financial resources. There is no assurance that exploration efforts will result in commercially viable production.

Zion Oil & Gas operates in a niche market of onshore oil and gas exploration in Israel, a region with limited competition due to exclusive exploration rights granted by the Israeli government to license holders. The company’s long-standing presence and accumulated geological data over 25 years provide a knowledge base and operational experience that may be difficult for new entrants to replicate quickly. Additionally, Zion’s ownership of drilling rigs and related services through subsidiaries offers some operational control and potential revenue diversification when rigs are contracted to third parties. However, the company’s lack of current production and revenues, reliance on external financing, and exposure to geopolitical and regulatory risks limit the strength of its competitive moat.

• Geopolitical and Security Risks: Ongoing conflicts in Israel and the surrounding region create risks of operational disruption, personnel safety concerns, and damage to assets. These conditions may also affect the availability of service providers and equipment.
• Capital and Financing Risks: The company relies on external financing, primarily through equity sales, to fund exploration activities. Failure to raise sufficient capital could delay or curtail operations.
• Operational and Logistical Challenges: Visa restrictions, import delays, and limited availability of drilling services in Israel have caused operational delays and increased costs.
• Regulatory and Environmental Compliance: Increasing Israeli governmental regulations and environmental requirements may lead to higher costs and delays in obtaining necessary licenses and approvals.
• Exploration and Production Uncertainty: There is inherent uncertainty in exploration activities; wells may not yield commercially viable quantities of hydrocarbons, impacting future revenues and cash flow.

• Zion Oil & Gas, Inc. is a Texas corporation focused on oil and gas exploration in Israel with a 25-year history in the region.
• The company was incorporated in 2000 and completed its IPO in 2007; its common stock trades on the OTCQX marketplace under ticker ZNOG.
• Zion owns subsidiaries including Zion Drilling, Inc. and Zion Drilling Services, Inc., which own drilling rigs and provide drilling services, including to third parties in Israel.
• The company holds exploration licenses in Israel, notably the Megiddo Valleys License 434 awarded in September 2023, valid through 2026 with extensions possible to 2030.
• Exploration activities focus on wells MJ-01 and MJ-02 in Israel, with recent operations including recompletion, stimulation, and flowback testing that confirmed gas presence consistent with a productive reservoir.
• Operations have faced logistical challenges including visa issues for rig crews, regional conflicts, and regulatory approvals, causing temporary pauses and delays.
• The company has no current revenues or operating income; its ability to generate future revenues depends on successful exploration and commercial production.
• Financial snapshot as of December 31, 2025: cash and equivalents of $8.31 million, current assets of $11.53 million, current liabilities of $2.26 million, resulting in a current ratio of 5.11 and cash ratio of 3.68.
• Net loss for the year ended December 31, 2025 was $2.32 million; basic EPS was -$0.002 per share.
• Zion Oil & Gas has raised capital primarily through equity sales under a Dividend Reinvestment and Stock Purchase Plan, with significant funding from a few participants.
• The company faces risks including geopolitical instability in Israel, regulatory and environmental compliance costs, operational delays, and the need for additional financing to continue exploration activities.
• Recent news highlights include regulatory approvals for recompletion projects, progress on drilling and testing operations, and the company’s listing upgrade to OTCQX in February 2026.