Petroleum Exploration License Extension Letter between State of Israel Ministry of Energy and Zion Oil & Gas, Inc.
The State of Israel's Ministry of Energy has granted Zion Oil & Gas, Inc. a one-year extension on its Joseph License/339 for petroleum exploration, now valid until April 10, 2013. During this period, Zion must complete specific tasks, including obtaining and processing seismic survey data, updating geophysical maps, preparing a drilling prospectus, and executing a drilling contract by set deadlines. The extension is conditional on fulfilling these work program requirements within the specified timeframes.
EXHIBIT 10.1
[TRANSLATION FROM HEBREW]
STATE OF ISRAEL
MINISTRY OF ENERGY AND WATER
LICENSING AUTHORITY NATURAL RESOURCES
Oil and Gas
12 August 2012
Oil_688_2012
| Mr Richard Rinberg,CEO Zion Oil & Gas, Inc 22 Bareket Northern Industrial Zone Caesarea 38900 | Fax: 04 ###-###-#### |
Dear Sir
Re: Joseph License/339- Extending the Validity
Your letter dated July 17, 2012
In view of your above mentioned request, I hereby extend the above referenced license for an additional year up to April 10, 2013. During the extension period your company shall execute the following work program:
| a. | Obtain the seismic survey, process the data and submit the process report and ancillary material to the National archives at the Geophysics Institute as defined in the guidelines for transferring seismic data, by October 15, 2012. |
| b. | Interpret the new seismic survey and integrate the data with old seismic lines, update the geophysical maps and submit a geophysical summary report by December 15, 2012. |
| c. | Identify and prepare a drilling prospectus that includes a description of the geological background, the purposes and desired drilling depths and the petroleum system/s that are related therein and a geological forecast and engineering plan for the proposed drilling by January 15,2013. |
| d. | Execute a contract with a drilling contractor to drill a new well or drill the existing well by - 15 February 2013. |
Alexander Varshavsky
Commissioner of Petroleum Affairs
