Zion Oil & Gas Inc (ZNOG)

[KyOil]

3D Area Relative to the MJ License Area

The 3D area is only 72 sq km, or 17,800 acres. This is compared to the MJ license area being 99,000 acres. So, the 3D only covered about 18% of the license area.

See the map on this pr:

https://www.zionoil.com/updates/press-release-august-15-2019-zion-oil-gas-signs-agreement-to-begin-3-d-seismic-acquisition-in-israel/

MJ02 is located in the lower right hand corner of the 3D area shown in yellow hash lines.

The 3D area is in the lower right hand corner of the MJ license as indicated by the arrow.

So, ZNOG is only drilling in the far right hand corner of the license with MJ02.

In the annual meeting June 9, 2021 Dunn mentioned prospects in both the 3D area, and in the western portion of the license; these are potentially two separate targets. The western portion has not had a 3D yet, nor has the middle. So, its not possible right now to use 3D to size the a potential reservoir over the entire license area. Other tools can be used such as 2D and other wells.

An interesting twist is that a production lease is for less area than an exploration license. So, with a MJ02 discovery, ZNOG may get a production lease for the area around MJ02, but may not get exploration rights in the western portion of the current lease.