Zion Oil & Gas (ZNOG) 8-K Entry into a Material Definitive Agreement

Exhibit 10.1

STATE OF ISRAEL

LICENSE

License No. 339/ "Joseph"

Pursuant to my authority under Section 16 of the Petroleum Law, 5712-1952

This LICENSE is granted to Zion Oil & Gas, Inc. (100%)

The LICENSE is granted - with respect to the area described in the First Annex.

The LICENSE is granted - subject to the provisions of the Petroleum Law, 5712-1952, and the Regulations issued pursuant thereto, and to the special conditions details in the Second Annex, which is an integral part of this License.

Granted in Jerusalem, on 29 Tishrai 5778

   11 October 2007

/s/ Dr. Ya'acov Mimran

Dr. Ya'acov Mimran

Commissioner of Petroleum Affairs

This License was registered with Petroleum Registry on 29 Tishrai 5778

    11 October 2007.