Zion Oil & Gas (ZNOG) 10-Q 3 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 20, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ZION OIL & GAS INC
Entity Central Index Key	1,131,312
Trading Symbol	zn
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		36,622,340

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 4,601	$ 5,344
Fixed short term bank deposits - restricted	$ 1,296	1,298
Fixed short term time deposits		531
Prepaid expenses and other	$ 193	$ 280
Deferred offering cost	4
Other receivables	25	$ 181
Total current assets	6,119	7,634
Unproved oil and gas properties, full cost method	4,207	3,891
Property and equipment at cost Net of accumulated depreciation of $443 and $412	159	186
Other assets
Assets held for severance benefits	202	169
Total assets	10,687	11,880
Current liabilities
Accounts payable	140	132
Asset retirement obligation	500	163
Accrued liabilities	1,683	870
Total current liabilities	2,323	1,165
Provision for severance pay	224	195
Total liabilities	$ 2,547	$ 1,360
Commitments and contingencies (see Note 5)
Stockholders' equity
Common stock, par value $.01; Authorized: 200,000,000 and 100,000,000 shares at June 30, 2015 and December 31, 2014 respectively: Issued and outstanding: 36,597,638 and 35,755,304 shares at June 30, 2015 and December 31, 2014 respectively	$ 366	$ 358
Additional paid-in capital	147,057	144,958
Accumulated deficit	(139,283)	(134,796)
Total stockholders' equity	8,140	10,520
Total liabilities and stockholders' equity	$ 10,687	$ 11,880

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Property and equipment, accumulated depreciation	$ 443	$ 412
Common stock, par value	$ 0.01	$ 0.01
Common stock, Authorized	200,000,000	100,000,000
Common stock, Issued	36,597,638	35,755,304
Common stock, outstanding	36,597,638	35,755,304

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statements of Operations [Abstract]
General and administrative	$ 1,007	$ 975	$ 2,862	$ 1,820
Other	1,077	671	1,608	2,083
Loss from operations	(2,084)	(1,646)	(4,470)	(3,903)
Other income (expense), net
Foreign exchange gain	16	6	3	2
Financial expenses, net	(10)	(3)	(20)	(6)
Loss before income taxes	$ (2,078)	$ (1,643)	$ (4,487)	$ (3,907)
Income taxes
Net loss	$ (2,078)	$ (1,643)	$ (4,487)	$ (3,907)
Net loss per share of common stock - basic and diluted (in US$)	$ (0.06)	$ (0.05)	$ (0.12)	$ (0.11)
Weighted-average shares outstanding - basic and diluted (in thousands)	36,467	34,874	36,270	34,622

Statements of Changes In Stockh

Statements of Changes In Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balances at Dec. 31, 2014	$ 10,520	$ 358	$ 144,958	$ (134,796)
Beginning Balances (in shares) at Dec. 31, 2014		35,755
Funds received from sale of DSPP units and shares	1,615	$ 6	1,609
Funds received from sale of DSPP units and shares (in shares)		664
Funds received from option exercises	44	$ 2	42
Funds received from option exercises (in shares)		178
Value of options granted to employees, directors and others	448		$ 448
Net loss	(4,487)			$ (4,487)
Ending Balances at Jun. 30, 2015	$ 8,140	$ 366	$ 147,057	$ (139,283)
Ending Balances (in shares) at Jun. 30, 2015		36,597

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (4,487)	$ (3,907)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation	31	44
Cost of options issued to employees, directors & others	441	252
Interest on short term bank deposits	2	(7)
Change in assets and liabilities, net:
Prepaid expenses and other	87	93
Other receivables	156	$ (102)
Deferred offering cost	(4)
Severance pay, net	(4)	$ (8)
Accounts payable	51	(3)
Accrued liabilities	854	96
Asset retirement obligation	337	(191)
Net cash used in operating activities	(2,536)	(3,733)
Cash flows from investing activities
Investment in short term bank deposits	531	(635)
Acquisition of property and equipment	(4)	(29)
Investment in unproved oil and gas properties	(393)	(612)
Net cash provided by (used in) investing activities	134	(1,276)
Cash flows from financing activities
Proceeds from sale of stock and exercise of options	1,659	1,918
Net cash provided by financing activities	1,659	1,918
Net decrease in cash and cash equivalents	(743)	(3,091)
Cash and cash equivalents - beginning of period	5,344	10,414
Cash and cash equivalents - end of period	4,601	7,323
Non-cash investing and financing activities:
Cost of options capitalized to oil & gas properties	7	2
Unpaid investments in oil & gas properties	$ 47	$ 13

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Nature of Operations and Basis of Presentation [Abstract]
Nature of Operations and Basis of Presentation	Note 1 - Nature of Operations and Basis of Presentation A. Nature of Operations Zion Oil & Gas, Inc., a Delaware corporation (“we,” “our,” “Zion” or the “Company”) is an oil and gas exploration company with a history of more than 15 years of oil and gas exploration in Israel. As of June 30, 2015, the Company had no revenues from its oil and gas operations. Exploration Rights/Exploration Activities Zion currently holds one active petroleum exploration license onshore Israel, the Megiddo-Jezreel License (“MJL”), comprising approximately 99,000 acres. The Company has selected the specific drill pad location from which to drill its next exploration well, which it plans to spud by late 2015 or the first quarter of 2016. Megiddo-Jezreel Petroleum License (“MJL”) The Megiddo-Jezreel License was awarded on December 3, 2013 for a three-year primary term through December 2, 2016, with the possibility of additional one-year extensions up to a maximum of seven years. The MJL is onshore, south and west of the Sea of Galilee. Under the terms of this license, the Company had until July 1, 2015 to identify and submit a drilling prospect. Our license terms also call for us to enter into a drilling contract by October 1, 2015 and begin drilling or “spud” a well by December 1, 2015. On January 21, 2015, the Company formally submitted its Environmental Impact Assessment (“EIA”) document for its upcoming Megiddo-Jezreel #1 well to Israel’s Ministry of National Infrastructures, Energy and Water Resources (“Energy Ministry”) and thereafter, on January 25, 2015, to the Ministry of Environmental Protection (“Environmental Ministry”). This key milestone is required by the MJL work plan as well as by Israeli law and regulations. On February 25, 2015, the Company entered into a Memorandum of Understanding (“MOU”) with Viking Services, BV (“Viking”), an international rig and oilfield services provider, to obtain the right to contract a land-based rig and certain oilfield services and crew with which to drill the Company’s next exploratory well. The MOU contemplates a two-year agreement to drill two wells with an option to drill a third well. Zion is currently engaged in drilling contract negotiations with Viking for use of a land-based oil and gas rig with deep drilling capacity and certain other oilfield services for exploration activities within Zion’s license area. On March 29, 2015, the Company received from the Energy Ministry final approval of its application to merge the southernmost portion of its Jordan Valley License into the MJL, which the Company had filed on April 10, 2014. On March 22, 2015, the Company formally submitted its EIA document for our upcoming Megiddo-Jezreel #1 well to the Northern District Committee in Nazareth. On May 18, 2015, the Northern District Committee held a formal meeting and discussed, reviewed, and suggested modifications to the EIA document (see also Note 6). On June 1, the Company submitted its MJL Seismic Interpretation Report as required by its license terms (see also Note 6). Zion’s Former Asher-Menashe License and Former Joseph License The Company has plugged all of its previously drilled exploratory wells but acknowledges its obligation to complete the abandonment of these well sites in accordance with guidance from the Environmental Ministry and local officials. B. Basis of Presentation The accompanying unaudited interim financial statements of Zion Oil & Gas, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals necessary for a fair statement of financial position, results of operations and cash flows, have been included. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. To date, the Company has not achieved a discovery of either oil or gas in commercial quantities. The Company incurs cash outflows from operations and at this time all exploration activities and overhead expenses are financed by way of equity issuance. The recoverability of the costs incurred to date is uncertain and dependent upon achieving significant commercial production. The Company’s ability to continue as a going concern is dependent upon obtaining the necessary financing to undertake further exploration and development activities and ultimately generating profitable operations from its oil and natural gas interests in the future. The Company’s current operations are dependent upon the adequacy of its current assets to meet its current expenditure requirements and the accuracy of management’s estimates of those requirements. Should those estimates be materially incorrect, the Company’s ability to continue as a going concern may be impaired. The financial statements have been prepared on a going concern basis, which contemplates realization of assets and liquidation of liabilities in the ordinary course of business. During the six months ended June 30, 2015, the Company incurred a net loss of approximately $4.5 million and had an accumulated deficit of approximately $139.3 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company expects to incur additional significant expenditures to further its exploration programs. Management is of the opinion that its currently available cash resources are sufficient to finance its plan of operations through early November 2015, exclusive of proceeds received to date on the current Company’s rights offering (see also Note 6). To carry out further planned operations beyond that date, the Company must raise additional funds through additional equity issuances. There can be no assurance that this capital will be available and if it is not, the Company may be forced to curtail or cease exploration and development expenditures. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies A. Net Loss per Share Data Basic and diluted net loss per share of common stock, par value $0.01 per share, is presented in conformity with ASC 260-10 “Earnings Per Share.” Diluted net loss per share is the same as basic net loss per share as the inclusion of 5,358,681 and 3,771,405 common stock equivalents in the six month period ended June 30, 2015 and 2014 respectively, would be anti-dilutive. B. Use of Estimates The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of unproved oil and gas properties, deferred tax assets, asset retirement obligations and legal contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, and energy markets have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. C. Oil and Gas Properties and Impairment The Company follows the full-cost method of accounting for oil and gas properties. Accordingly, all costs associated with geological and geophysical data acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized. All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method. The Company’s oil and gas property represents an investment in unproved properties. These costs are excluded from the amortized cost pool until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The amount of any impairment is charged to expense since a reserve base has not yet been established. Impairment requiring a charge to expense may be indicated through evaluation of drilling results, relinquishing drilling rights or other information (see Note 4). Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $4,207,000 and $3,891,000 as of June 30, 2015 and December 31, 2014, respectively. D. Recently Adopted Accounting Pronouncements We do not believe that the adoption of any recently issued accounting pronouncements in 2015 had a significant impact on our financial position, results of operations, or cash flow. E. Reclassifications Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 3 - Stockholders’ Equity A. Authorized Common Shares The Amended and Restated Certificate of Incorporation was amended effective June 11, 2015 with the Certificate of Amendment that was filed with the Secretary of State of the State of Delaware on such date. This amendment of the Certificate of Incorporation was duly adopted in accordance with Section 242 of the Delaware General Corporation Law. The Company’s common stockholders approved the amendment to the Company’s Amended and Restated Certificate of Incorporation to increase the number of shares of common stock, par value $0.01 (“Common Stock”), that the Company is authorized to issue from 100 million to 200 million. B. 2005 Stock Option Plan During the six months ended June 30, 2015, the Company granted the following options from the 2005 Stock Option Plan, to purchase: i. 128,500 shares of common stock to senior officers, other staff members, and service providers at an exercise price of $1.38. The options vested upon grant and are exercisable through January 2, 2025. The fair value of the options at the date of grant amounted to approximately $106,000. ii. 25,000 shares of common stock to a senior officer at an exercise price of $1.38. The options have a par value of $.01. The options shall vest in June 30, 2015 and are exercisable through January 1, 2025. The fair value of the options at the date of grant amounted to approximately $21,000 and, iii. 123,500 shares of common stock to directors, senior officers, other staff members, and service providers at an exercise price of $0.01. The options vested upon grant and are exercisable through April 17, 2025. The fair value of the options at the date of grant amounted to $220,000. C. 2011 Non-Employee Directors Stock Option Plan In June 2015, the Company’s common stockholders approved an additional number of shares of Common Stock available under the 2011 Non-Employee Directors Stock Option Plan reserving for issuance thereunder an additional two million shares of Common Stock. During the six months ended June 30, 2015, the Company granted the following options from the 2011 Non-Employee Directors Stock Option Plan, to purchase: i. 108,000 shares of common stock to non-employee directors at an exercise price of $1.38. The options vested upon grant and are exercisable through January 2, 2021. The fair value of the options at the date of grant amounted to approximately $68,000; and ii. 25,000 shares of common stock to a non-employee director at an exercise price of $2.03. The options have a par value of $.01. The options vested upon grant and are exercisable through May 1, 2021. The fair value of the options at the date of grant amounted to approximately $23,000. D. 2011 Equity Incentive Stock Option Plan In June 2015, the Company’s common stockholders approved an additional number of shares of Common Stock available under the 2011 Equity Incentive Plan for employees and consultants reserving for issuance thereunder an additional four million shares of Common Stock. During the six months ended June 30, 2015, the Company granted the following options from the 2011 Non-Employee Directors Stock Option Plan, to purchase: i. 10,000 shares of common stock to one senior officer at an exercise price of $0.01. The options vest in equal quarterly instalments over four consecutive quarters, beginning with the quarter ended June 30, 2015 and are exercisable through April 2, 2025. The fair value of the options at the date of grant amounted to approximately $18,000. E. Stock Options The stock option transactions since January 1, 2015 are shown in the table below: Weighted average Number of shares exercise price US$ Outstanding, December 31, 2014 3,089,693 1.99 Changes during 2015 to: Granted to employees, officers, directors and others 420,000 0.98 Expired/Cancelled/Forfeited (62,500 ) 2.39 Exercised (178,000 ) 0.25 Outstanding, June 30, 2015 3,269,193 1.95 Exercisable, June 30, 2015 3,261,693 1.95 The following table summarizes information about stock options outstanding as of June 30, 2015: Shares underlying outstanding options (non-vested) Shares underlying outstanding options (fully vested) Range of exercise price Number outstanding Weighted average remaining contractual life (years) Weighted Average Exercise price Range of exercise price Number Outstanding Weighted average remaining contractual life (years) Weighted Average Exercise price US$ US$ US$ US$ 0.01 7,500 9.76 0.01 0.01 2,500 9.76 0.01 — — — — 0.01 51,000 9.80 0.01 — — — — 0.01 20,000 8.96 0.01 — — — — 0.01 45,000 8.75 0.01 — — — — 0.01 48,500 8.37 0.01 — — — — 0.01 20,000 4.59 0.01 — — — — 1.38 108,000 5.52 1.38 — — — — 1.38 149,750 9.52 1.38 — — — — 1.67 390,000 5.26 1.67 — — — — 1.67 514,443 9.26 1.67 — — — — 1.70 358,500 7.48 1.70 — — — — 1.70 132,500 3.48 1.70 — — — — 1.73 25,000 3.53 1.73 — — — — 1.82 25,000 1.96 1.82 — — — — 1.86 25,000 3.43 1.86 — — — — 1.95 25,000 4.76 1.95 — — — — 1.96 25,000 4.18 1.96 — — — — 2.03 25,000 5.84 2.28 — — — — 2.28 25,000 4.03 2.28 — — — — 2.61 200,000 2.43 2.61 — — — — 2.61 1,006,500 6.44 2.61 — — — — 4.45 25,000 0.58 4.45 — — — — 4.55 15,000 0.59 4.55 0.01 7,500 0.01 0.01--4.55 3,261,693 1.95 Granted to employees The following table sets forth information about the weighted-average fair value of options granted to employees and directors during the six months ended June 30, 2015 and 2014, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the six month ended June 30, 2015 2014 Weighted-average fair value of underlying stock at grant date $ 1.54 $ 1.96 Dividend yields — — Expected volatility 68%-70 % 77%-82 % Risk-free interest rates 0.97%-1.61 % 1.70%-1.74 % Expected lives (in years) 3.00-5.50 5.00-5.50 Weighted-average grant date fair value $ 1.06 $ 1.95 Granted to non-employees The following table sets forth information about the weighted-average fair value of options granted to non-employees during the six months ended June 30, 2015 and 2014, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the six month ended June 30, 2015 2014 Weighted-average fair value of underlying stock at grant date $ 1.63 $ 2.08 Dividend yields — — Expected volatility 72%-74 % 75 % Risk-free interest rates 1.87-2.12 % 2.65 % Expected lives (in years) 10.00 10.00 Weighted-average grant date fair value $ 1.50 $ 2.07 The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the options. The expected life represents the weighted average period of time that options granted are expected to be outstanding. The expected life of the options granted to employees and directors is calculated based on the Simplified Method as allowed under Staff Accounting Bulletin No. 110 (“SAB 110”), giving consideration to the contractual term of the options and their vesting schedules, as the Company does not have sufficient historical exercise data at this time. The expected life of the option granted to non-employees equals their contractual term. In the case of an extension of the option life, the calculation was made on the basis of the extended life. F. Compensation Cost for Option Issuances The following table sets forth information about the compensation cost of all option issuances recognized for employees and directors: For the six month ended June 30, 2015 2014 US$ US$ 410,000 186,000 The following table sets forth information about the compensation cost of all option issuances recognized for non-employees: For the six month ended June 30, 2015 2014 US$ US$ 38,000 68,000 As of June 30, 2015, there was approximately $9,000 of unrecognized compensation cost, related to non-vested stock options granted under the Company’s various stock option plans. That cost is expected to be recognized during the remaining periods of 2015 and 2016. G. Prospectus Supplement for the Dividend Reinvestment and Stock Purchase Plan (“DSPP”) On March 27, 2014, the Company launched its Dividend Reinvestment and Stock Purchase Plan (the “DSSP”) pursuant to which stockholders and interested investors can purchase shares of the Company’s Common Stock as well as units of the Company’s securities. The terms of the DSPP are described in the Prospectus Supplement originally filed on March 31, 2014 under the Company’s effective registration Statement on Form S-3 (the “Prospectus Supplement”). On January 13, 2015, the Company amended the Prospectus Supplement (“Amendment No. 3”) to provide for a new unit option (the “Unit Option”) under the DSPP comprised of one share of Common Stock and three Common Stock purchase warrants with each Unit priced at $4.00. Each warrant affords the investor or stockholder the opportunity to purchase the Company’s Common Stock at a warrant exercise price of $1.00. Each of the three warrants per Unit will have different expiration dates that have been extended. The Company’s new Unit Option Program began on February 2, 2015 and was scheduled to terminate May 4, 2015, but was extended for an additional 90-day period through August 3, 2015. The unit program was further extended through December 31, 2015. (See Note 6C). All of the warrants will first become exercisable and tradable on September 3, 2015, which is the 31 st The Company has filed an application with NASDAQ to list the three warrants on the NASDAQ Global Market under the symbols “ZNWAB,” “ZNWAC,” and “ZNWAD;” however, no assurance can be provided that the warrants will be approved for listing on the NASDAQ Global Market. The Company and its transfer agent have collectively raised approximately $1,615,000 in the six months ended June 30, 2015. As a result, the Company issued approximately 664,000 shares of its common stock during the same period. Additionally, warrants for approximately 528,000 shares of common stock were issued during the six months ended June 30, 2015 (approximately 176,000 each of ZNWAB, ZNWAC, and ZNWAD). The total amount of funds received from the DSPP inception date to June 30, 2015 is approximately $7,482,000 (see also Note 6C). H. Warrant Descriptions The price and the expiration dates for the series of warrants to investors are as follows: Period of Grant US$ Expiration Date ZNWAA Warrants March 2013 – December 2014 2.00 January 31, 2020 On February 2, 2015, the ZNWAA listed warrants began trading on the NASDAQ Global Markets but on February 11, 2015, NASDAQ halted trading on the ZNWAA warrants pending the Company’s response to NASDAQ's request for additional information. On April 9, 2015, NASDAQ resumed trading on Zion Oil & Gas, Inc.’s ZNWAA warrants.

Unproved Oil and Gas Properties

Unproved Oil and Gas Properties, Full Cost Method	6 Months Ended
	Jun. 30, 2015
Unproved Oil and Gas Properties, Full Cost Method [Abstract]
Unproved Oil and Gas Properties, Full Cost Method	Note 4 - Unproved Oil and Gas Properties, Full Cost Method Unproved oil and gas properties, under the full cost method, are comprised as follows: June 30, 2015 December 31, 2014 US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 895 895 Capitalized salary costs 1,011 916 Legal costs, license fees and other preparation costs 2,301 2,080 4,207 3,891

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 5 - Commitments and Contingencies A. Litigation From time to time, the Company may be subject to routine litigation, claims, or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, the Company cannot predict with certainty the outcome or effect of any such litigation or investigatory matters or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of any such lawsuits and investigations (see note 5C). B. Environmental and Onshore Licensing Regulatory Matters The Company is engaged in oil and gas exploration and production and may become subject to certain liabilities as they relate to environmental cleanup of well sites or other environmental restoration procedures and other obligations as they relate to the drilling of oil and gas wells or the operation thereof. In July 2013, the Environmental Ministry published: “Environmental Guidelines for the preparation of an environmental document supplementary to a license for searching – experimental drilling and land extraction tests.” This document extensively details the requirements for a supplemental environmental document to an oil and gas exploration plan. On January 21, 2015, the Company formally submitted its Environmental Impact Assessment (“EIA”) document for our upcoming Megiddo-Jezreel #1 well to Israel’s Energy Ministry and thereafter, on January 25, 2015, to the Environmental Ministry. This key milestone is required by the MJL work plan as well as by Israeli law and regulations. On December 3, 2013, the State of Israel’s Petroleum Commissioner awarded the Company the Megiddo-Jezreel Petroleum Exploration License No. 401. Subsequently, the Company secured a bank guarantee from an Israeli based bank in the amount of $930,000, in accordance with the performance guarantee guidelines. Consequently, Zion believes it has met the requirements of the June 2012 onshore exploratory licensing guidelines and the October 2012 performance guarantee guidelines. On February 6, 2014, the Energy Ministry issued proposed guidelines for bank guarantees and insurance requirements with respect to oil and gas rights. Under these guidelines, applicants for and existing holders of exploration rights will be required to submit certain bank guarantees and insurance policies that were not previously required. On September 17, 2014, the proposed guidelines became effective and the Energy Ministry issued a guidance document entitled “Instructions for the Giving of Guarantees with respect to Oil Rights.” As it relates to existing onshore license holders like Zion, the Instructions call for the Company to obtain a new Base Bank Guarantee in the amount of $500,000, per each existing license area, split into two deposit dates as follows: (1) $250,000 by November 30, 2014 and (2) $250,000 by March 31, 2015. Furthermore, prior to the start of drilling, an additional bank guarantee of $250,000 will be required at least 14 days before the spud date. In summary, this is a potential cumulative total of $750,000 that is separate and apart from the Company’s existing Bank Guarantees discussed below in Section D. The Petroleum Commissioner has discretion to raise or lower those amounts or may also forfeit a Company’s existing guarantee and/or cancel a petroleum right under certain circumstances. In addition, new and extended insurance policy guidelines were added. The Petroleum Commissioner may also view non-compliance with the new insurance provisions as breaching the work plan and the rights granted and act accordingly. Due to the Petroleum Commissioner’s discretion in the matter, the Company has not provided bank guarantees based on the September 2014 guidelines as it has not had a request from the Commissioner. As of June 30, 2015, the Company has not received a specific request seeking payment and therefore, has not yet provided any of the additional bank guarantees called for in the new guidelines. On January 11, 2015 the Energy Ministry issued revised guidelines (initially issued in February 2012) for onshore wellbore abandonment that are based on US regulations on well abandonment found in 43 CFR, Section 3162.3-4; applicable Texas Railroad Commission guidelines; and Well Abandonment and Inactive Well Practices for U.S. Exploration and Production Operations found in API Bulletin E3. This guideline is effective April 1, 2015. On February 12, 2015, the Energy Ministry issued guidance for preparation and submission of the drilling program (first presented on April 29, 2014), describing types of and purposes of production tests depending on the stage of development of a reservoir. This guideline is effective April 1, 2015. On April 27, 2015, the Energy Ministry issued guidelines for well testing, establishing procedures and minimum requirements for pressure testing, production flow testing, fluid analyses testing, etc. The Company believes that these new regulations will significantly increase the expenditures associated with obtaining new exploration rights and drilling new wells, coupled with the heavy financial burden of “locking away” significant amounts of cash that could otherwise be used for operational purposes. Finally, this will also considerably increase the time needed to obtain all of the necessary authorizations and approvals prior to drilling. C. Former Drilling Contract with AME/GYP On March 4, 2014, the Company received from the International Court of Arbitration in Paris, France (“ICA”) a request for arbitration in London filed by Guyney Yildizi Petrol UuretimSondajMut, ve Tie A.S. (“GYP”) over the $550,000 rig demobilization fee. On May 1, 2014, prior to Zion’s answer date deadline, Zion filed an answer in which it denied GYP’s claim for payment of the demobilization fee, and in addition it asserted a Counterclaim against GYP. In the preliminary procedural stage, Zion challenged GYP’s standing to assert its claim on the basis that there was no assignment of the Drilling Contract from Aladdin Middle East (“AME”) to GYP pursuant to the provisions of the Drilling Contract. GYP challenged Zion’s right to assert any issue not related to the demobilization fee, including Zion’s counterclaim. On December 19, 2014, the appointed arbitrator communicated to the ICA that she was denying each party’s preliminary challenges, and the arbitration would proceed on the basis of the primary claims and counterclaims raised by the parties. On February 9, 2015, Zion and GYP each filed submissions on Stage 1 issues, to which rebuttals were due on March 5, 2015. On April 29, 2015, the arbitrator issued her Partial Award ordering Zion to pay GYP the demobilization fee of $550,000 plus interest in the amount of approximately $237,000, which continues to accrue at the rate of $180.82 per day until paid. However, any Final Award sum is not determinable until the issuance of the Final Award after resolution of Stage 2 of Zion’s fraud and other tort counterclaims against GYP. The Company recorded a provision in the amount of $910,000 to cover the Company's potential liability . On June 22 the arbitrator set an evidentiary hearing on the Stage 2 issues for the week of December 7, 2015 in London. D. Bank Guarantees As of June 30, 2015, the Company provided bank guarantees to various governmental bodies (approximately $1,159,000) and others (approximately $68,000) in respect of its drilling operation in an aggregate amount of approximately $1,227,000. The funds backing these guarantees and additional amounts added to support currency fluctuations as required by the bank are held in interest-bearing accounts and are reported on the Company’s balance sheets as “restricted cash.” E. Asset Retirement Obligations The Company currently estimates that the costs of plugging and decommissioning of the exploratory wells drilled to date in the Asher-Menashe and Joseph License areas to be approximately $500,000 based on current cost rather than Net Present Value. Liabilities for expenditures are recorded when environmental assessment and/or remediation is probable and the timing and costs can be reasonably estimated. Changes in Asset Retirement Obligations were as follows: For the six months ended June 30, 2015 2014 US$ thousands US$ thousands Asset Retirement Obligations, Beginning Balance 163 483 Liabilities Settled (16 ) (191 ) Revision of Estimate 353 — Retirement Obligations, Ending Balance 500 292 Liabilities of approximately $16,000 were settled for the six months ended June 30, 2015; those liabilities were related to Joseph License areas. Approximately $353,000 were accrued for the six months ended June 30, 2015, and were primarily due to changes in estimated costs for future Plug & Abandonment activities related to the Asher-Menashe and Joseph License areas.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 6 - Subsequent Events A. Rights Offering Prospectus Supplement On July 6, 2015, the Company filed with the Securities and Exchange Commission (the “SEC”) the Prospectus Supplement dated as of July 6, 2015 and accompanying base prospectus (collectively, the “Prospectus”) relating to the Company’s rights offering of non-transferable subscription rights to the holders of the Company’s Common Stock as of record date of June 19, 2015, to purchase up to approximately 7,280,000 of Rights described below of the Company’s securities. The Prospectus forms a part of the Company’s Registration Statement on Form S-3 (File No. 333-193336), as amended, which was declared effective by the SEC on March 27, 2014. Under the rights offering, the Company is distributing, at no cost to stockholders, non-transferable subscription rights (each “Right” and collectively the “Rights”) to purchase its securities to persons who owned shares of its Common Stock on June 19, 2015 (the “record date”), with each Right consisting of four (4) share of Common Stock. Each shareholder will receive 0.20 of a subscription right for each share of Common Stock owned as of close of business on the record date (i.e., ONE subscription right for each FIVE shares). A total of 29,120,000 shares of Common Stock have been set aside by Zion Oil & Gas, Inc. for this Subscription Rights Offering. Each whole subscription right represents the right to exercise one Right at a price of $7.00 for an average purchase price of $1.75 per share, and may be exercised at any time prior to 5:00 p.m. Eastern Standard time on September 30, 2015, the scheduled expiration of the offer; however, the Company may extend the offering period at its sole discretion. The rights offering also includes an over-subscription privilege, that will entitle a stockholder who exercises all of their basic subscription privilege the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among stockholders exercising their over-subscription right. If the Company receives valid subscriptions for all of the Rights available under the rights offering, of which no assurance can be provided then the gross proceeds of the offering will be approximately $51 million, before offering related expenses which the Company estimates should not exceed $50,000. B. Regulatory and Governmental On July 8, 2015, the Company submitted its Megiddo-Jezreel #1 Well Drilling Prospect Report in compliance with the terms of its license. Upon the Company’s request, the Energy Ministry had extended the due date from July 1 to July 9, 2015. On July 8, 2015, the Company’s environmental impact assessment (EIA) reply documents addressing the issues the Northern District Committee raised during their meeting of May 18, 2015, were officially submitted. Once the committee reviews the information and approves, they will authorize a 60-day public comments period. C. Amendment No. 5 amends the Prospectus Supplement dated March 27, 2014 On July 29, 2015, Amendment No. 5 to the Prospectus Supplement was filed. This Amendment No. 5 amends the Prospectus Supplement dated March 27, 2014 (“Original Prospectus Supplement”) as supplemented on May 30, 2014 (“Amendment No. 1 to Prospectus Supplement”), as supplemented on July 31, 2014 (“Amendment No. 2 to Prospectus Supplement”), as supplemented on January 13, 2015 (“Amendment No. 3 to Prospectus Supplement”), and as supplemented on May 1, 2015 (“Amendment No. 4 to Prospectus Supplement”). Under our DSPP, our Unit Program continues with an extended Unit Option period, but otherwise the same Unit Program features, conditions and terms in the Prospectus Supplement and Amendment No. 2 apply. We are offering under our Unit Program that began on February 2, 2015 under Amendment No. 3 to the Prospectus an extension of the Unit Option that is being extended from the original termination date of May 4, 2015 to a termination date of December 31, 2015. The Unit Option to purchase Units of our securities where each Unit (priced at $4.00) is comprised of one (1) share of Common Stock and three (3) Common Stock purchase warrants. Each warrant affords the investor or stockholder the opportunity to purchase one share of our Common Stock at a warrant exercise price of $1.00. Each of the three warrants per Unit will have different expiration dates that have been extended. All of the warrants will first become exercisable and tradable on January 31, 2016, which is the 31 st Accordingly, all references in the Original Prospectus Supplement and Amendment Nos. 1, 3 and 4, concerning the Unit Options were deleted and replaced with the extended Unit Option as described in Amendment No. 5, above. Except for the substitution of the extended Unit Option above, all other features, conditions and terms of the Plan remain unchanged.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Net Loss per Share Data	A. Net Loss per Share Data Basic and diluted net loss per share of common stock, par value $0.01 per share, is presented in conformity with ASC 260-10 “Earnings Per Share.” Diluted net loss per share is the same as basic net loss per share as the inclusion of 5,358,681 and 3,771,405 common stock equivalents in the six month period ended June 30, 2015 and 2014 respectively, would be anti-dilutive.
Use of Estimates	B. Use of Estimates The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of unproved oil and gas properties, deferred tax assets, asset retirement obligations and legal contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, and energy markets have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.
Oil and Gas Properties and Impairment	C. Oil and Gas Properties and Impairment The Company follows the full-cost method of accounting for oil and gas properties. Accordingly, all costs associated with geological and geophysical data acquisition, exploration and development of oil and gas reserves, including directly related overhead costs, are capitalized. All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is included in loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method. The Company’s oil and gas property represents an investment in unproved properties. These costs are excluded from the amortized cost pool until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The amount of any impairment is charged to expense since a reserve base has not yet been established. Impairment requiring a charge to expense may be indicated through evaluation of drilling results, relinquishing drilling rights or other information (see Note 4). Currently, the Company has no economically recoverable reserves and no amortization base. The Company’s unproved oil and gas properties consist of capitalized exploration costs of $4,207,000 and $3,891,000 as of June 30, 2015 and December 31, 2014, respectively.
Recently Adopted Accounting Pronouncements	D. Recently Adopted Accounting Pronouncements We do not believe that the adoption of any recently issued accounting pronouncements in 2015 had a significant impact on our financial position, results of operations, or cash flow.
Reclassifications	E. Reclassifications Certain reclassifications have been made to conform the prior period’s financial information to the current period’s presentation.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant and Option Transactions	Weighted average Number of shares exercise price US$ Outstanding, December 31, 2014 3,089,693 1.99 Changes during 2015 to: Granted to employees, officers, directors and others 420,000 0.98 Expired/Cancelled/Forfeited (62,500 ) 2.39 Exercised (178,000 ) 0.25 Outstanding, June 30, 2015 3,269,193 1.95 Exercisable, June 30, 2015 3,261,693 1.95
Stock Warrants and Options Outstanding	Shares underlying outstanding options (non-vested) Shares underlying outstanding options (fully vested) Range of Number outstanding Weighted average remaining contractual life (years) Weighted Range of exercise Number Weighted average remaining contractual life (years) Weighted US$ US$ US$ US$ 0.01 7,500 9.76 0.01 0.01 2,500 9.76 0.01 — — — — 0.01 51,000 9.80 0.01 — — — — 0.01 20,000 8.96 0.01 — — — — 0.01 45,000 8.75 0.01 — — — — 0.01 48,500 8.37 0.01 — — — — 0.01 20,000 4.59 0.01 — — — — 1.38 108,000 5.52 1.38 — — — — 1.38 149,750 9.52 1.38 — — — — 1.67 390,000 5.26 1.67 — — — — 1.67 514,443 9.26 1.67 — — — — 1.70 358,500 7.48 1.70 — — — — 1.70 132,500 3.48 1.70 — — — — 1.73 25,000 3.53 1.73 — — — — 1.82 25,000 1.96 1.82 — — — — 1.86 25,000 3.43 1.86 — — — — 1.95 25,000 4.76 1.95 — — — — 1.96 25,000 4.18 1.96 — — — — 2.03 25,000 5.84 2.28 — — — — 2.28 25,000 4.03 2.28 — — — — 2.61 200,000 2.43 2.61 — — — — 2.61 1,006,500 6.44 2.61 — — — — 4.45 25,000 0.58 4.45 — — — — 4.55 15,000 0.59 4.55 0.01 7,500 0.01 0.01--4.55 3,261,693 1.95
Schedule of Warrants Description	Period of Grant US$ Expiration Date ZNWAA Warrants March 2013 – December 2014 2.00 January 31, 2020
Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Assumptions Used to Estimate Fair Value of Warrants Granted Using Black-Scholes Option Pricing Model	For the six month ended 2015 2014 Weighted-average fair value of underlying stock at grant date $ 1.63 $ 2.08 Dividend yields — — Expected volatility 72%-74 % 75 % Risk-free interest rates 1.87-2.12 % 2.65 % Expected lives (in years) 10.00 10.00 Weighted-average grant date fair value $ 1.50 $ 2.07
Non Employee [Member] | Warrants and Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Compensation Cost of Warrant and Option Issuances	For the six month ended June 30, 2015 2014 US$ US$ 38,000 68,000
Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Assumptions Used to Estimate Fair Value of Warrants Granted Using Black-Scholes Option Pricing Model	For the six month ended 2015 2014 Weighted-average fair value of underlying stock at grant date $ 1.54 $ 1.96 Dividend yields — — Expected volatility 68%-70 % 77%-82 % Risk-free interest rates 0.97%-1.61 % 1.70%-1.74 % Expected lives (in years) 3.00-5.50 5.00-5.50 Weighted-average grant date fair value $ 1.06 $ 1.95
Employees and Directors [Member] | Warrants and Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Compensation Cost of Warrant and Option Issuances	For the six month ended June 30, 2015 2014 US$ US$ 410,000 186,000

Unproved Oil and Gas Properti15

Unproved Oil and Gas Properties, Full Cost Method (Tables)	6 Months Ended
	Jun. 30, 2015
Unproved Oil and Gas Properties, Full Cost Method [Abstract]
Schedule of Unproved Oil and Gas Properties, Full Cost Method	June 30, 2015 December 31, 2014 US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 895 895 Capitalized salary costs 1,011 916 Legal costs, license fees and other preparation costs 2,301 2,080 4,207 3,891

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Schedule of Changes in Asset Retirement Obligations	For the six months ended 2015 2014 US$ thousands US$ thousands Asset Retirement Obligations, Beginning Balance 163 483 Liabilities Settled (16 ) (191 ) Revision of Estimate 353 — Retirement Obligations, Ending Balance 500 292

Nature of Operations and Basi17

Nature of Operations and Basis of Presentation (Narrative) (Details) $ in Thousands	Dec. 03, 2013	Jun. 30, 2015USD ($)a	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)a	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Nature of Operations and Basis of Presentation [Line Items]
Net loss		$ (2,078)	$ (1,643)	$ (4,487)	$ (3,907)
Accumulated deficit		$ (139,283)		$ (139,283)		$ (134,796)
Megiddo-Jezreel License [Member]
Nature of Operations and Basis of Presentation [Line Items]
Area of land | a		99,000		99,000
Initial length of lease	3 years
Megiddo-Jezreel License [Member] | Maximum [Member]
Nature of Operations and Basis of Presentation [Line Items]
Length of lease, additional term	7 years
Megiddo-Jezreel License [Member] | Minimum [Member]
Nature of Operations and Basis of Presentation [Line Items]
Length of lease, additional term	3 years

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Summary of Significant Accounting Policies (Textual)
Common stock equivalents excluded from EPS as the inclusion would be anti-dilutive	5,358,681	3,771,405
Common stock, par value	$ 0.01		$ 0.01
Capitalized exploration costs	$ 4,207		$ 3,891

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($)	Jun. 19, 2015	Mar. 27, 2014	Jun. 30, 2015	Feb. 02, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value			$ 0.01		$ 0.01
Common stock, Authorized			200,000,000		100,000,000
Unrecognized compensation cost related to non vested stock			$ 9,000
Equity instrument exercise price				$ 1
Common stock shares issued	7,280,000
Warrants issued			528,000
Amount of funds received from DSPP			$ 7,482,000
ZNWAB Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued			176,000
ZNWAC Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued			176,000
ZNWAD Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued			176,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instrument par value			$ 4
Equity instrument exercise price			$ 1
Warrant termination date description			All of the warrants will first become exercisable and tradable on September 3, 2015, which is the 31st day following the new Unit Option Termination Date (i.e., on August 3, 2015) and continue to be exercisable through September 5, 2016 for ZNWAB (1 year), September 4, 2017 for ZNWAC (2 years) and September 4, 2018 for ZNWAD (3 years), respectively, at a per share exercise price of $1.00. The Unit is priced at $4.00 and no change will be made to the warrant exercise price of $1.00 per share.
Amount collected from DSPP			$ 1,615,000
Common stock shares issued			664,000
Stock Option Plan 2005 [Member] | Senior officers, other staff members, and service providers [Member] | January 2, 2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			128,500
Shares purchased under option plan price per share			$ 1.38
Shares purchased under option plan			$ 106,000
Stock option plan, expiration date			Jan. 2, 2025
Stock Option Plan 2005 [Member] | Senior officer one [Member] | January 1, 2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			25,000
Shares purchased under option plan price per share			$ 1.38
Shares purchased under option plan			$ 21,000
Stock option plan, expiration date			Jan. 1, 2025
Equity instrument par value			$ 0.01
Stock Option Plan 2005 [Member] | Directors, senior officers, other staff members, and service providers [Member] | April 17, 2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			123,500
Shares purchased under option plan price per share			$ 0.01
Shares purchased under option plan			$ 220,000
Stock option plan, expiration date			Apr. 17, 2025
Stock Option Plan 2011 [Member] | Senior officer one [Member] | April 2, 2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			10,000
Shares purchased under option plan price per share			$ 0.01
Shares purchased under option plan			$ 18,000
Stock option plan, expiration date			Apr. 2, 2025
Stock Option Plan 2011 [Member] | Non-employee director [Member] | January 2, 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			108,000
Shares purchased under option plan price per share			$ 1.38
Shares purchased under option plan			$ 68,000
Stock option plan, expiration date			Jan. 2, 2021
Stock Option Plan 2011 [Member] | Non-employee director [Member] | May 1, 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)			25,000
Shares purchased under option plan price per share			$ 2.03
Shares purchased under option plan			$ 23,000
Stock option plan, expiration date			May 1, 2021
Equity instrument par value			$ 0.01
Dividend Reinvestment and Stock Purchase Plan [Member] | December 31, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option plan, expiration date		Dec. 31, 2015
Equity instrument par value		$ 4
Equity instrument exercise price		$ 1

Stockholders' Equity (Stock Opt

Stockholders' Equity (Stock Option Transactions) (Details) - Jun. 30, 2015 - Stock Option [Member] - $ / shares	Total
Number of shares
Outstanding, Beginning balance	3,089,693
Granted to employees, officers, directors and others	420,000
Expired/Cancelled/Forfeited	(62,500)
Exercised	(178,000)
Outstanding, Ending balance	3,269,193
Number of shares Exercisable	3,261,693
Weighted average exercise price
Outstanding, Beginning balance	$ 1.99
Granted to employees, officers, directors and others	0.98
Expired/Cancelled/Forfeited	2.39
Exercised	0.25
Outstanding, Ending balance	1.95
Weighted Average exercise price Exercisable	$ 1.95

Stockholders' Equity (Stock O21

Stockholders' Equity (Stock Options Outstanding (Details) - Jun. 30, 2015 - $ / shares	Total
Unvested [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	7,500
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Unvested [Member] | Range Exercise Price 0.01 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	7,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 9 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options Range of exercise price, lower range	0.01
Shares underlying outstanding options Range of exercise price, upper range	$ 4.55
Shares underlying outstanding options Number outstanding	3,261,693
Shares underlying outstanding options Weighted Average Exercise price	$ 1.95
Vested [Member] | Range Exercise Price 0.01 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	2,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 9 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Second [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	51,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 9 months 18 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Third [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	20,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 11 months 16 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Four [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	45,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 9 months
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Five [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	48,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 4 months 13 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Six [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 0.01
Shares underlying outstanding options Number outstanding	20,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 7 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 1.38 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.38
Shares underlying outstanding options Number outstanding	108,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 6 months 7 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.38
Vested [Member] | Range Exercise Price 1.38 Second [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.38
Shares underlying outstanding options Number outstanding	149,750
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 6 months 7 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.38
Vested [Member] | Range Exercise Price 1.67 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.67
Shares underlying outstanding options Number outstanding	390,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 3 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.67
Vested [Member] | Range Exercise Price 1.67 Second [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.67
Shares underlying outstanding options Number outstanding	514,443
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 3 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.67
Vested [Member] | Range Exercise Price 1.70 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.7
Shares underlying outstanding options Number outstanding	358,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 years 5 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.7
Vested [Member] | Range Exercise Price 1.70 Second [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.7
Shares underlying outstanding options Number outstanding	132,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 5 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.7
Vested [Member] | Range Exercise Price 1.73 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.73
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 6 months 11 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.73
Vested [Member] | Range Exercise Price 1.82 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.82
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	1 year 11 months 16 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.82
Vested [Member] | Range Exercise Price 1.86 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.86
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 5 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.86
Vested [Member] | Range Exercise Price 1.95 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.95
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 9 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.95
Vested [Member] | Range Exercise Price 1.96 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.96
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 2 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.96
Vested [Member] | Range Exercise Price 2.03 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 2.03
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 10 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.28
Vested [Member] | Range Exercise Price 2.28 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 2.28
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 11 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.28
Vested [Member] | Range Exercise Price 2.61 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 2.61
Shares underlying outstanding options Number outstanding	200,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 5 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.61
Vested [Member] | Range Exercise Price 2.61 Second [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 2.61
Shares underlying outstanding options Number outstanding	1,006,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	6 years 5 months 9 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.61
Vested [Member] | Range Exercise Price 4.45 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 4.45
Shares underlying outstanding options Number outstanding	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	6 months 29 days
Shares underlying outstanding options Weighted Average Exercise price	$ 4.45
Vested [Member] | Range Exercise Price 4.55 [Member]
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 4.55
Shares underlying outstanding options Number outstanding	15,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 4.55

Stockholders' Equity (Assumptio

Stockholders' Equity (Assumptions Used to Estimate Fair Value of Warrants Granted Using Black-Scholes Option Pricing Model) (Details) - Stock Options [Member] - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of underlying stock at grant date	$ 1.63	$ 2.08
Dividend yields
Expected volatility, minimum	72.00%
Expected volatility, maximum	74.00%
Expected volatility		75.00%
Risk-free interest rates, minimum	1.87%
Risk-free interest rates, maximum	2.12%
Risk-free interest rates		2.65%
Expected lives (in years)	10 years	10 years
Weighted-average grant date fair value	$ 1.50	$ 2.07
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of underlying stock at grant date	$ 1.54	$ 1.96
Dividend yields
Expected volatility, minimum	68.00%	77.00%
Expected volatility, maximum	70.00%	82.00%
Risk-free interest rates, minimum	0.97%	1.70%
Risk-free interest rates, maximum	1.61%	1.74%
Weighted-average grant date fair value	$ 1.06	$ 1.95
Employee [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives (in years)	3 years	5 years
Employee [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives (in years)	5 years 6 months	5 years 6 months

Stockholders' Equity (Compensat

Stockholders' Equity (Compensation Cost of Warrant and Option Issuances Recognized) (Details) - Warrants and Options [Member] - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances	$ 410,000	$ 186,000
Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances	$ 38,000	$ 68,000

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Warrants Description) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015	Feb. 02, 2015
Class of Warrant or Right [Line Items]
Equity instrument exercise price		$ 1
ZNWAA Warrants [Member]
Class of Warrant or Right [Line Items]
Warrant name	ZNWAA
Equity instrument exercise price	$ 2
Warrant expiration date	Jan. 31, 2020
ZNWAA Warrants [Member] | Beginning Date [Member]
Class of Warrant or Right [Line Items]
Warrant period of grant	Mar. 31, 2013
ZNWAA Warrants [Member] | Ending Date [Member]
Class of Warrant or Right [Line Items]
Warrant period of grant	Dec. 31, 2014

Unproved Oil and Gas Properti25

Unproved Oil and Gas Properties, Full Cost Method (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Excluded from amortization base:
Inventory, and other operational related costs	$ 895	$ 895
Capitalized salary costs	1,011	916
Legal costs, license fees and other preparation costs	2,301	2,080
Total unproved oil and gas properties, full cost method	$ 4,207	$ 3,891

Commitments and Contingencies26

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Commitments and Contingencies [Abstract]
Asset Retirement Obligations, Beginning Balance	$ 163	$ 483
Liabilities Settled	(16)	$ (191)
Revision of Estimate	353
Retirement Obligations, Ending Balance	$ 500	$ 292

Commitments and Contingencies27

Commitments and Contingencies (Narrative) (Details) - USD ($)	Apr. 29, 2015	Sep. 17, 2014	Dec. 03, 2013	Jun. 30, 2015	Jun. 30, 2014
Commitments And Contingencies [Line Items]
Existing onshore license holders for performance guarantee guidelines requirement			$ 930,000
Bank guarantees to government				$ 1,159,000
Bank guarantees to others				68,000
Aggregate guarantee amount				1,227,000
Settlement amount	$ 550,000
Interest accrued	237,000
Provision for company's liability	910,000
Asset retirement obligation				500,000
Liabilities settled to Joseph License area				16,000	$ 191,000
Asset obligation				$ 353,000
Interest On Debt [Member]
Commitments And Contingencies [Line Items]
Interest rate per day	$ 180.82
New Israeli Shekel [Member]
Commitments And Contingencies [Line Items]
On shore license holders base guarantee value		$ 500,000
On shore license holders base guarantee additional value		250,000
On shore license holder base guarantee cumulative amount		750,000
New Israeli Shekel [Member] | November 30, 2014 [Member]
Commitments And Contingencies [Line Items]
On shore license holders base guarantee value		250,000
New Israeli Shekel [Member] | March 31, 2015 [Member]
Commitments And Contingencies [Line Items]
On shore license holders base guarantee value		$ 250,000

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - USD ($)	Jun. 19, 2015	Jun. 30, 2015	Feb. 02, 2015
Subsequent Events [Abstract]
Issuance of shares for subscription rights offering	7,280,000
Share price	$ 0.20	$ 7
Gross proceeds of rights offering	$ 51,000,000
Rights offering expenses	$ 50,000
Unit option to purchase unit securities description		The Unit Option to purchase Units of our securities where each Unit (priced at $4.00) is comprised of one (1) share of Common Stock and three (3) Common Stock purchase warrants.
Warrant instrument exercise price			$ 1
Unit price of share		$ 4
Average purchase price of shares		$ 1.75