Zion Oil & Gas (ZNOG) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
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	Mar. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		39,145,163

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 3,900	$ 2,871
Fixed short term bank deposits - restricted	1,269	1,301
Prepaid expenses and other	347	360
Deferred offering cost	136	134
Other receivables	1,158	374
Total current assets	6,810	5,040
Unproved oil and gas properties, full cost method	5,459	5,022
Property and equipment at cost Net of accumulated depreciation of $488 and $473	141	144
Other assets
Assets held for severance benefits	245	226
Total assets	12,655	10,432
Current liabilities
Accounts payable	301	396
Asset retirement obligation	201	204
Accrued liabilities	298	853
Total current liabilities	800	$ 1,453
Long-term liabilities
10% Senior convertible bonds (see Note 6)	3,470
Provision for severance pay	275	$ 249
Total long-term liabilities	3,745	249
Total liabilities	$ 4,545	$ 1,702
Commitments and contingencies (see Note 5)
Stockholders' equity
Common stock, par value $.01; Authorized: 200,000,000 shares at March 31, 2016 : Issued and outstanding: 38,838,723 and 38,220,258 shares at March 31, 2016 and December 31, 2015 respectively	$ 388	$ 382
Additional paid-in capital	151,376	150,450
Accumulated deficit	(143,654)	(142,102)
Total stockholders' equity	8,110	8,730
Total liabilities and stockholders' equity	$ 12,655	$ 10,432

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Property and equipment, accumulated depreciation	$ 488	$ 473
Common stock, par value	$ 0.01	$ 0.01
Common stock, Authorized	200,000,000	200,000,000
Common stock, Issued	38,838,723	38,220,258
Common stock, outstanding	38,838,723	38,220,258

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statements of Operations [Abstract]
General and administrative	$ 1,172	$ 1,920
Other	391	466
Loss from operations	(1,563)	(2,386)
Other income (expense), net
Foreign exchange gains,(loss)	21	(13)
Financial (expenses), net	(10)	(10)
Loss before income taxes	$ (1,552)	$ (2,409)
Income taxes
Net loss	$ (1,552)	$ (2,409)
Net loss per share of common stock - basic and diluted (in US$)	$ (0.04)	$ (0.07)
Weighted-average shares outstanding - basic and diluted (in thousands)	38,995	36,030

Statements of Changes In Stockh

Statements of Changes In Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in Capital	Accumulated deficit
Beginning Balances at Dec. 31, 2015	$ 8,730	$ 382	$ 150,450	$ (142,102)
Beginning Balances (in shares) at Dec. 31, 2015		38,220
Funds received from sale of DSPP units and shares	757	$ 3	$ 754
Funds received from sale of DSPP units and shares (in shares)		306
Funds received from option exercises	3	$ 3
Funds received from option exercises (in shares)		312
Value of options granted to employees, directors and others	172		$ 172
Net loss	(1,552)			$ (1,552)
Ending Balances at Mar. 31, 2016	$ 8,110	$ 388	$ 151,376	$ (143,654)
Ending Balances (in shares) at Mar. 31, 2016		38,838

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net loss	$ (1,552)	$ (2,409)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation	15	16
Cost of options issued to employees, directors & others	172	178
Interest on short term bank deposits	(10)	17
Change in assets and liabilities, net:
Prepaid expenses and other	13	38
Change in other receivables	31	140
Severance pay, net	7	5
Accounts payable	(281)	(33)
Accrued liabilities	(562)	791
Asset retirement obligation	(3)	(14)
Net cash used in operating activities	(2,170)	(1,271)
Cash flows from investing activities
Investment in short term bank deposits	42	531
Acquisition of property and equipment	(12)	(1)
Investment in unproved oil and gas properties	(244)	(217)
Net cash (used in) provided by investing activities	(214)	$ 313
Cash flows from financing activities
Proceeds from sale of 10% Senior Convertible Bonds	2,655
Deferred offering cost	(2)
Proceeds from sale of stock and exercise of options	760	$ 428
Net cash provided by financing activities	3,413	428
Net decrease in cash and cash equivalents	1,029	(530)
Cash and cash equivalents - beginning of period	2,871	5,344
Cash and cash equivalents - end of period	3,900	$ 4,814
Non-cash investing and financing activities:
10% Senior convertible bonds - cash held in escrow	$ 815
Cost of options capitalized to oil & gas properties		$ 7
Unpaid investments in oil & gas properties	$ 248	$ 72

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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 16 years of oil and gas exploration in Israel. As of March 31, 2016, 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 within the third quarter of 2016. The drilling of this well to the desired depth is subject to the Company raising sufficient funds from equity or debt offerings, of which no assurance can be provided (see Note 6). Megiddo-Jezreel Petroleum License (“MJL”) The MJL 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. The license terms also called for it to enter into a drilling contract by October 1, 2015 and begin drilling or “spud” a well by December 1, 2015. On January 29, 2016, the Company submitted a second Application for Extension of Drilling Date, and on February 7, 2016, the Petroleum Commissioner formally approved the application as follows: NO. ACTIVITY DESCRIPTION TO BE CARRIED OUT BY: 1 Sign contract with drilling contractor and forward to Petroleum Commissioner 15 April 2016 2 Submit detailed engineering plan to carry out / perform drilling 15 April 2016 3 Begin drilling / spud well in license area 1 July 2016 4 Submit final report on the results of drilling 15 November 2016 5 Submit a plan for continued work in the license area 1 December 2016 The Company is in negotiations with prospective drilling contractor(s) for the provision of an appropriate drilling rig (for lease and/or purchase) and staff. The Company is also in negotiations with the local kibbutz (Sde Eliyahu) on whose property the drilling pad is situated for access and drilling rights. Finally, the Company needs the requisite authorization from the Israel Lands Authority (the “ILA”), the formal lessor of the land to the Kibbutz, to access and utilize the drill site. The Company has filed with ILA all of the requisite applications and, as of the date of this report, the Company has not received formal approval from the ILA. These are critical agreements that are necessary before spudding of the planned Megiddo-Jezreel #1 well can commence. Zion’s Former Jordan Valley, Joseph, and Asher-Menashe Licenses On March 29, 2015, the Energy Ministry formally approved Zion’s application to merge the southernmost portion of the Jordan Valley License into the Megiddo-Jezreel License. The Company has plugged all of its exploratory wells (in the former Joseph and Asher-Menashe Licenses) 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, 2015. 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 months ended March 31, 2016 are not necessarily indicative of the operating results for the year ending December 31, 2016 or for any other subsequent interim period. To date, the Company has not achieved a discovery of either oil or natural gas in commercial quantities. The Company incurs cash outflows from operations and all exploration activities and overhead expenses to date have been financed by way of equity and debt financing. 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 three months ended March 31, 2016, the Company incurred a net loss of approximately $1.6 million and had an accumulated deficit of approximately $143.7 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 program. Management is of the opinion that its currently available cash resources are sufficient to finance its plan of operations through July 2016. To carry out further planned operations beyond that date, the Company must raise additional funds through additional equity and/or debt 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 activities, including the drilling of the planned MJL exploratory well. 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	3 Months Ended
	Mar. 31, 2016
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 (the “Common Stock”), 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 6,039,104 and 4,785,118 Common Stock equivalents in the three-month period ended March 31, 2016 and 2015 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 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 continuing 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. 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 $5,459,000 and $5,022,000 as of March 31, 2016 and December 31, 2015, respectively. D. Recently Adopted Accounting Pronouncements We do not believe that the adoption of any recently issued accounting pronouncements in 2016 had a significant impact on our financial position, results of operations, or cash flow.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 3 - Stockholders’ Equity A. 2011 Equity Incentive Plan for employees and consultants During the three months ended March 31, 2016, the Company granted the following options from the 2011 Equity Incentive Plan for employees and consultants, to purchase: i. 25,000 shares of Common Stock to a senior officer at an exercise price of $0.01. The options vested upon grant and are exercisable through December 31, 2025. The fair value of the options at the date of grant amounted to approximately $46,000. ii. 25,000 shares of Common Stock to a senior officer at an exercise price of $0.01. The options vested upon grant and are exercisable through January 4, 2026. The fair value of the options at the date of grant amounted to approximately $47,000. iii. 35,000 shares of Common Stock to a non-employee director and a staff member at an exercise price of $0.01 per share. The options vested upon grant and are exercisable through January 15, 2026. The fair value of the options at the date of grant amounted to approximately $59,000 (see Note 6). B. 2011 Non-Employee Directors Stock Option Plan During the three months ended March 31, 2016, the Company granted the following options from the 2011 Non-Employee Directors Stock Option Plan, to purchase: i. 25,000 shares of Common Stock to a non-employee director at an exercise price of $1.87 per share. The options vested upon grant and are exercisable through January 31, 2022. The fair value of the options at the date of grant amounted to approximately $20,000 (see Note 6). C. Stock Options The stock option transactions since January 1, 2016 are shown in the table below: Weighted average Number of shares exercise US$ Outstanding, December 31, 2015 3,629,693 1.76 Changes during 2016 to: Granted to employees, officers, directors and others 110,000 0.43 Expired/Cancelled/Forfeited (102,500 ) 3.23 Exercised (312,000 ) 0.01 Outstanding, March 31, 2016 3,325,193 1.83 Exercisable, March 31, 2016 3,325,193 1.83 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 2,500 9.01 0.01 — — — — 0.01 29,500 05 0.01 — — — — 0.01 15,000 8.20 0.01 — — — — 0.01 45,000 8.00 0.01 — — — — 0.01 43,500 7.62 0.01 — — — — 0.01 20,000 3.84 0.01 — — — — 0.01 72,500 9.35 0.01 — — — — 0.01 75,000 9.51 0.01 — — — — 0.01 25,000 9.75 0.01 — — — — 1.38 108,000 4.76 1.38 — — — — 1.38 149,750 8.76 1.38 — — — — 1.67 390,000 4.51 1.67 — — — — 1.67 514,443 51 1.67 — — — — 1.70 358,500 6.73 1.70 — — — — 1.70 120,000 2.73 1.70 — — — — 1.73 25,000 2.78 1.73 — — — — 1.82 25,000 1.20 1.82 — — — — 1.86 25,000 2.68 1.86 — — — — 1.87 25,000 5.84 1.87 — — — — 1.95 25,000 4.01 1.95 — — — — 1.96 25,000 3.43 1.96 — — — — 2.03 25,000 5.09 2.03 — — — — 2.28 25,000 3.28 2.28 — — — — 2.61 150,000 1.68 2.61 — — — — 2.61 1,006,500 5.68 2.61 - - - 0.01-2.61 3,325,193 1.83 Granted to employees The following table sets forth information about the weighted-average fair value of options granted to employees and directors during the three months ended March 31, 2016 and 2015, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the three months ended March 31, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.81 $ 1.38 Dividend yields — — Expected volatility 62%-69 % 69%-70 % Risk-free interest rates 1.01%-1.76 % 1.07%-1.61 % Expected lives (in years) 3.00-5.50 3.00-5.25 Weighted-average grant date fair value $ 1.56 $ 0.73 Granted to non-employees The following table sets forth information about the weighted-average fair value of options granted to non-employees during the three months ended March 31, 2016 and 2015, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the three months ended 2016 2015 Weighted-average fair value of underlying stock at grant date $ — $ 1.38 Dividend yields — — Expected volatility — 74 % Risk-free interest rates — 2.12 % Expected lives (in years) — 10.00 Weighted-average grant date fair value $ — $ 1.08 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. D. 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 three months ended March 31, 2016 2015 US$ US$ 172,000 174,000 The following table sets forth information about the compensation cost of all option issuances recognized for non-employees: For the three months ended March 31, 2016 2015 US$ US$ - 11,000 E. Dividend Reinvestment and Stock Purchase Plan (“DSPP”) On March 27, 2014, the Company launched its Dividend Reinvestment and Stock Purchase Plan (the “DSPP”) 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 (the “Original Prospectus Supplement”) with the Securities and Exchange Commission (“SEC”) under the Company’s effective registration Statement on Form S-3, as thereafter amended. On January 13, 2015, the Company amended the Original Prospectus Supplement (“Amendment No. 3”) to provide for a unit option (the “Unit Option”) under the DSPP comprised of one share of Common Stock and three (3) Common Stock purchase warrants with each unit priced at $4.00. Each warrant afforded 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 warrant series have different expiration dates that have been extended. On December 28, 2015, Amendment No. 6 to the Original Prospectus Supplement was filed extending the scheduled termination date of the Unit Option to March 31, 2016. On March 31, 2016, the Unit Option terminated. They are not in a sufficient quantity to justify OTC trading. The warrants became first exercisable on May 2, 2016 (the first exercise day after the 31st day following the Unit Option Termination Date) and continue to be exercisable through May 2, 2017 for ZNWAB (1 year), May 2, 2018 for ZNWAC (2 years) and May 2, 2019 for ZNWAD (3 years), respectively, at a per share exercise price of $1.00. Through the three months ended March 31, 2016, approximately $757,000 has been raised under the DSPP program. As a result, the Company issued approximately 306,000 shares of its Common Stock during the same period. Additionally, warrants for approximately 286,000 shares of Common Stock were issued during the three months ended March 31, 2016 (approximately 95,000 each of ZNWAB, ZNWAC, and ZNWAD). The total amount of funds received from the DSPP from the inception date through March 31, 2016 is approximately $9,444,000. F. Warrant Descriptions The price and the expiration dates for the series of warrants to investors are as follows: Period of Grant US$ 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 Market but on February 11, 2015, NASDAQ halted trading on the ZNWAA warrants pending the Company’s response to NASDAQ's request for additional information. As of April 9, 2015, ZNWAA is listed on NASDAQ for trading .

Unproved Oil and Gas Properties

Unproved Oil and Gas Properties, Full Cost Method	3 Months Ended
	Mar. 31, 2016
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: March 31, December 31, US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 1,620 1,312 Capitalized salary costs 1,218 1,177 Legal costs, license fees and other preparation costs 2,591 2,506 Other costs 30 27 5,459 5,022

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
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. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on its financial position, results of operations or cash flows. 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. 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 C. 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 March 31, 2016, 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 U.S. 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. On August 13, 2015, the Energy Ministry issued a new guideline for hydraulic fracturing design and operations that are based on Canadian regulations per Directive 083. This guideline is effective November 21, 2015. The procedures seek to prevent impacts on water wells, non-saline aquifers and prevent surface impacts. On September 9, 2015, the Energy Ministry issued information relating to application forms for exploration drilling, detailing certain operator requirements prior to drilling, including required submission of an Application for Permit to Drill (APD) and Supplemental APD Information Sheet - Casing Design, both due 30 days prior to commencement of work. In addition, an Application for Permit to Modify (APM) form is provided relating to changes to and modifications of already-approved drilling programs and other actions that were omitted from the original application such as production testing, abandonment, etc. Finally, an End of Operation Report (EOR) form is provided to report the end of drilling or a temporary or a final end of operations. 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 reserving 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 Uretim Sondaj Mut, ve Tic A. S. (“GYP”) over a $550,000 drilling rig demobilization fee. On May 1, 2014, 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. 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 was not determinable until resolution 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 December 22, 2015, Zion and GYP entered into a Settlement Agreement and Mutual Release resolving the arbitration by which Zion is required to pay the sum of $550,000 to and/or for the benefit of GYP plus required value added tax (“VAT”) and income tax withholding under Israeli tax law. All attorneys’ fees are to be paid by the party incurring same. Netted out of the $550,000 was an old VAT obligation of GYP and most of the required withholding taxes, both of which Zion paid directly to the Israeli Tax Authority (“ITA”). The new VAT paid by Zion on this transaction is recoverable by Zion and should be received from the ITA in the near future. All required sums under the settlement agreement have been paid by Zion and GYP, with the exception of reimbursement to Zion of $47,500 by GYP upon the future filing of certain Israeli tax returns by GYP. On April 25, 2016, a Final Award by Consent was signed by the arbitrator incorporating the terms of the settlement (see Note 6). D. Bank Guarantees As of March 31, 2016, the Company provided bank guarantees to various governmental bodies (approximately $1,131,000) and others (approximately $67,000) in respect of its drilling operation in an aggregate amount of approximately $1,198,000. 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.” (See also Note 6).

Senior Convertible Bonds Rights

Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016)	3 Months Ended
	Mar. 31, 2016
Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) [Abstract]
Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016)	Note 6 - Senior Convertible Bonds Rights Offering (October 21, 2015 – March 31, 2016) 10% Senior Convertible Notes due May 2, 2021 On October 21, 2015, the Company filed with the SEC a prospectus supplement for a new rights offering. Under the new rights offering, the Company distributed at no cost, 360,000 non-transferable subscription rights to subscribe for, on a per right basis, two 10% Convertible Senior Bonds par $100 due May 2, 2021 (the “Notes”), to persons who owned shares of the Company’s Common Stock on October 15, 2015, the record date for the offering. Each whole subscription right entitled the participant to purchase two convertible bonds at a purchase price of $100.00 per bond. Effective October 21, 2015, the Company executed a Supplemental Indenture, as issuer, with the American Stock Transfer & Trust Company, LLC, a New York limited liability trust company (“AST”), as trustee for the Notes (the “Indenture”). The offering was scheduled to terminate on January 15, 2016 but was extended to March 31, 2016. On March 31, 2016, the rights offering terminated. On May 2, 2016, the Company issued approximately $3,470,000 aggregate principal amount of Notes in connection with the rights offering. The Company received net proceeds of approximately $3,334,000, in which approximately $815,000 are cash held in escrow as of March 31 2016, from the sale of the Notes, after deducting fees and expenses of $136,000 incurred in connection with the rights offering. The Notes are governed by the terms of the Indenture. The Notes are senior unsecured obligations of the Company and bear interest at a rate of 10% per year, payable annually in arrears on May 2 of each year, commencing May 2, 2017. The Notes will mature on May 2, 2021, unless earlier redeemed by the Company or converted by the holder. Interest and principal may be repaid, at the Company’s option, in shares of the Company’s Common Stock. The number of shares for the payment of interest in shares of Common Stock, in lieu of the cash amount, shall be based on the average of the closing prices of the Company’s Common Stock as reported by Bloomberg L.P. for the 30 trading days preceding the record date for the payment of interest, which we have designated as 10 business days prior to the interest payment date on May 2 of each year. The number of shares for the payment of principal and unpaid interest, in lieu of the cash amount, shall be based upon the average of the closing price of the Company’s Common Stock as reported by Bloomberg L.P. for the 30 trading days preceding the principal repayment date, which we have designated as the trading day immediately prior to the 30 day period preceding the maturity date of May 2, 2021. Fractional shares will not be issued and the final number of shares being rounded up to the next whole share. At any time prior to the close of business on the business day immediately preceding April 2, 2021, holders may convert their Notes into Common Stock, in multiples of $100 principal amount, at the conversion rate of 44 shares per $100 bond (which is equivalent to $2.27 per share). The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of stock dividends and payment of cash dividends. Beginning May 3, 2018, the Company is entitled to redeem for cash the outstanding Notes at an amount equal to the outstanding principal and accrued and unpaid interest, plus a 10% premium. No “sinking fund” is provided for the Notes, which means that we are not required to periodically redeem or retire the Notes. Upon the occurrence of certain fundamental changes involving us, holders of the Notes may require us to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest. The indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving us) occurs and is continuing, the holders of at least a majority in principal amount of the outstanding Notes by written notice to us and AST, as trustee, or AST, on behalf of and as requested by such holders, may declare 100% of the principal of and accrued and unpaid interest, if any, on all of the Convertible Notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. In case of certain events of bankruptcy, insolvency or reorganization, involving us or a significant subsidiary, 100% of the principal of and accrued and unpaid interest on the notes will automatically become due and payable. Notwithstanding the foregoing, the indenture provides that, to the extent we elect and for up to 365 days, the sole remedy for an event of default relating to certain failures by us to comply with certain reporting covenants in the indenture consists exclusively of the right to receive additional interest on the Convertible Notes. The indenture does not contain any financial or maintenance covenants or restrictions on the payments of dividends or the issuance or repurchase of securities by us or any of our subsidiaries. There are restrictions on the incurrence of future debt under certain circumstances. In accordance with accounting guidance for debt with conversion and other options, the Company is currently evaluating the note for derivative accounting treatment; the determination of the accounting treatment will be made in Q2 since the notes were issued on May 2, 2016.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 7 - Subsequent Events Approximately $450,000 was collected through the Company’s DSPP program during the period April 1, 2016 through April 30, 2016. These funds were for the purchase of Zion shares and not for units or bonds since both the units and bonds terminated on March 31, 2016. Convertible bonds were issued on May 2, 2016 by our trustee, American Stock Transfer & Trust, in the total sum of $3,470,000. Upon GYP making a required VAT payment to the Israeli Tax Authority and furnishing the required tax receipts to Zion in April, 2016, the arbitration was closed by a Final Award by Consent signed by arbitrator on April 25, 2016. On May 15, 2016 the Company entered into a surface use agreement with Kibbutz Sde Eliyahu regarding the drilling of the Megiddo-Jezreel #1 well. A new bank guarantee was deposited for the Contract with Sde Eliyahu for the amount of approximately $10,500. On April 4, 2016, the Company granted options from the 2011 Equity Incentive Plan for employees and consultants, to purchase 10,000 shares of Common Stock to one senior officer at an exercise price of $0.01 per share. The options vested in equal quarterly installments over four consecutive quarters, beginning with the quarter ended June 30, 2016 and are exercisable through April 3, 2026. The fair value of the options at the date of grant amounted to approximately $18,000.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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 (the “Common Stock”), 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 6,039,104 and 4,785,118 Common Stock equivalents in the three-month period ended March 31, 2016 and 2015 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 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 continuing 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. 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 $5,459,000 and $5,022,000 as of March 31, 2016 and December 31, 2015, respectively.
Recently Adopted Accounting Pronouncements	D. Recently Adopted Accounting Pronouncements We do not believe that the adoption of any recently issued accounting pronouncements in 2016 had a significant impact on our financial position, results of operations, or cash flow.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant and Option Transactions	Weighted average Number of shares exercise US$ Outstanding, December 31, 2015 3,629,693 1.76 Changes during 2016 to: Granted to employees, officers, directors and others 110,000 0.43 Expired/Cancelled/Forfeited (102,500 ) 3.23 Exercised (312,000 ) 0.01 Outstanding, March 31, 2016 3,325,193 1.83 Exercisable, March 31, 2016 3,325,193 1.83
Stock warrants and options outstanding	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 2,500 9.01 0.01 — — — — 0.01 29,500 05 0.01 — — — — 0.01 15,000 8.20 0.01 — — — — 0.01 45,000 8.00 0.01 — — — — 0.01 43,500 7.62 0.01 — — — — 0.01 20,000 3.84 0.01 — — — — 0.01 72,500 9.35 0.01 — — — — 0.01 75,000 9.51 0.01 — — — — 0.01 25,000 9.75 0.01 — — — — 1.38 108,000 4.76 1.38 — — — — 1.38 149,750 8.76 1.38 — — — — 1.67 390,000 4.51 1.67 — — — — 1.67 514,443 51 1.67 — — — — 1.70 358,500 6.73 1.70 — — — — 1.70 120,000 2.73 1.70 — — — — 1.73 25,000 2.78 1.73 — — — — 1.82 25,000 1.20 1.82 — — — — 1.86 25,000 2.68 1.86 — — — — 1.87 25,000 5.84 1.87 — — — — 1.95 25,000 4.01 1.95 — — — — 1.96 25,000 3.43 1.96 — — — — 2.03 25,000 5.09 2.03 — — — — 2.28 25,000 3.28 2.28 — — — — 2.61 150,000 1.68 2.61 — — — — 2.61 1,006,500 5.68 2.61 - - - 0.01-2.61 3,325,193 1.83
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 three months ended 2016 2015 Weighted-average fair value of underlying stock at grant date $ — $ 1.38 Dividend yields — — Expected volatility — 74 % Risk-free interest rates — 2.12 % Expected lives (in years) — 10.00 Weighted-average grant date fair value $ — $ 1.08
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 three months ended March 31, 2016 2015 US$ US$ - 11,000
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 three months ended March 31, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.81 $ 1.38 Dividend yields — — Expected volatility 62%-69 % 69%-70 % Risk-free interest rates 1.01%-1.76 % 1.07%-1.61 % Expected lives (in years) 3.00-5.50 3.00-5.25 Weighted-average grant date fair value $ 1.56 $ 0.73
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 three months ended March 31, 2016 2015 US$ US$ 172,000 174,000

Unproved Oil and Gas Properti16

Unproved Oil and Gas Properties, Full Cost Method (Tables)	3 Months Ended
	Mar. 31, 2016
Unproved Oil and Gas Properties, Full Cost Method [Abstract]
Schedule of Unproved Oil and Gas Properties, Full Cost Method	March 31, December 31, US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 1,620 1,312 Capitalized salary costs 1,218 1,177 Legal costs, license fees and other preparation costs 2,591 2,506 Other costs 30 27 5,459 5,022

Nature of Operations and Basi17

Nature of Operations and Basis of Presentation (Details) $ in Thousands	Dec. 03, 2013	Mar. 31, 2016USD ($)a	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Nature of Operations and Basis of Presentation [Line Items]
Net loss		$ (1,552)	$ (2,409)
Accumulated deficit		$ (143,654)		$ (142,102)
Megiddo-Jezreel License [Member]
Nature of Operations and Basis of Presentation [Line Items]
Area of land | a		99,000
Initial length of lease	3 years
Megiddo-Jezreel License [Member] | Maximum [Member]
Nature of Operations and Basis of Presentation [Line Items]
Initial length of lease	7 years
Megiddo-Jezreel License [Member] | Minimum [Member]
Nature of Operations and Basis of Presentation [Line Items]
Initial length of lease	1 year
Jordan Valley License [Member]
Nature of Operations and Basis of Presentation [Line Items]
Net loss		$ 1,600
Accumulated deficit		$ 143,700

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Summary of Significant Accounting Policies (Textual)
Common stock equivalents excluded from EPS as the inclusion would be anti-dilutive	6,039,104	4,785,118
Common stock, par value	$ 0.01		$ 0.01
Capitalized exploration costs	$ 5,459		$ 5,022

Stockholders' Equity (Stock Opt

Stockholders' Equity (Stock Option Transactions) (Details) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Number of shares
Outstanding, Beginning balance | shares	3,629,693
Granted to employees, officers, directors and others | shares	110,000
Expired/Cancelled/Forfeited | shares	(102,500)
Exercised | shares	(312,000)
Outstanding, Ending balance | shares	3,325,193
Number of shares Exercisable | shares	3,325,193
Weighted average exercise price
Outstanding, Beginning balance | $ / shares	$ 1.76
Granted to employees, officers, directors and others | $ / shares	0.43
Expired/Cancelled/Forfeited | $ / shares	3.23
Exercised | $ / shares	0.01
Outstanding, Ending balance | $ / shares	1.83
Weighted Average exercise price Exercisable | $ / shares	$ 1.83

Stockholders' Equity (Stock O20

Stockholders' Equity (Stock Options Outstanding) (Details) - Vested [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
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	$ 2.61
Shares underlying outstanding options Number outstanding | shares	3,325,193
Shares underlying outstanding options Weighted Average Exercise price	$ 1.83
Range Exercise Price 0.01 First [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 | shares	2,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
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 | shares	29,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
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 | shares	15,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 2 months 12 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
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 | shares	45,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
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 | shares	43,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 years 7 months 13 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
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 | shares	20,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 10 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Range Exercise Price 0.01 Seven [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 | shares	72,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 4 months 6 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Range Exercise Price 0.01 Eight [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 | shares	75,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 6 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Range Exercise Price 0.01 Nine [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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 9 months
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Range Exercise Price 1.38 First [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 | shares	108,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 9 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.38
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 | shares	149,750
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 9 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.38
Range Exercise Price 1.67 First [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 | shares	390,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 6 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.67
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 | shares	514,443
Shares underlying outstanding options Weighted average remaining contractual life (years)	51 years
Shares underlying outstanding options Weighted Average Exercise price	$ 1.67
Range Exercise Price 1.70 First [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.70
Shares underlying outstanding options Number outstanding | shares	358,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	6 years 8 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.70
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	$ 1.70
Shares underlying outstanding options Number outstanding | shares	120,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 8 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.70
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 9 months 11 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.73
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	1 year 2 months 12 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.82
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 8 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.86
Range Exercise Price 1.87 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.87
Shares underlying outstanding options Number outstanding | shares	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	$ 1.87
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.95
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 | shares	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	$ 1.96
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 1 month 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.03
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 3 months 11 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.28
Range Exercise Price 2.61 First [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 | shares	150,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	1 year 8 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.61
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 | shares	1,006,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 8 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.61

Stockholders' Equity (Assumptio

Stockholders' Equity (Assumptions Used to Estimate Fair Value of Warrants Granted Using Black-Scholes Option Pricing Model) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of underlying stock at grant date		$ 1.38
Dividend yields
Expected volatility		74.00%
Risk-free interest rates		2.12%
Expected lives (in years)		10 years
Weighted-average grant date fair value		$ 1.08
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of underlying stock at grant date	$ 1.81	$ 1.38
Dividend yields
Expected volatility, minimum	62.00%	69.00%
Expected volatility, maximum	69.00%	70.00%
Risk-free interest rates, minimum	1.01%	1.07%
Risk-free interest rates, maximum	1.76%	1.61%
Weighted-average grant date fair value	$ 1.56	$ 0.73
Employee [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives (in years)	3 years	3 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 3 months

Stockholders' Equity (Compensat

Stockholders' Equity (Compensation Cost of Warrant and Option Issuances Recognized) (Details) - Warrants and Options [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances	$ 172,000	$ 174,000
Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances		$ 11,000

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Warrants Description) (Details) - ZNWAA Warrants [Member]	3 Months Ended
	Mar. 31, 2016$ / shares
Class of Warrant or Right [Line Items]
Warrant name	ZNWAA Warrants
Warrant exercise price	$ 2
Warrant expiration date	Jan. 31, 2020
Beginning Date [Member]
Class of Warrant or Right [Line Items]
Warrant period of grant	Mar. 31, 2013
Ending Date [Member]
Class of Warrant or Right [Line Items]
Warrant period of grant	Dec. 31, 2014

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 27, 2014
ZNWAB Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued	95,000
ZNWAC Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued	95,000
ZNWAD Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued	95,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant termination date description	The warrants became first exercisable on May 2, 2016 (the first exercise day after the 31st day following the Unit Option Termination Date) and continue to be exercisable through May 2, 2017 for ZNWAB (1 year), May 2, 2018 for ZNWAC (2 years) and May 2, 2019 for ZNWAD (3 years), respectively, at a per share exercise price of $1.00.
Common stock shares issued	306,000
Amount of funds received from DSPP	$ 757,000
2011 Equity Incentive Plan for employees and consultants [Member] | Senior officers [Member] | December 31, 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	$ 0.01
Shares purchased under option plan	$ 46,000
Stock option plan, expiration date	Dec. 31, 2025
2011 Equity Incentive Plan for employees and consultants [Member] | Senior officer one [Member] | January 4, 2026 [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	$ 0.01
Shares purchased under option plan	$ 47,000
Stock option plan, expiration date	Jan. 4, 2026
2011 Equity Incentive Plan for employees and consultants [Member] | Non-employee director [Member] | January 15, 2026 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)	35,000
Shares purchased under option plan price per share	$ 0.01
Shares purchased under option plan	$ 59,000
Stock option plan, expiration date	Jan. 15, 2026
Dividend Reinvestment and Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per unit		$ 4
Equity instrument exercise price		$ 1
Warrants issued	286,000
Amount of funds received from DSPP	$ 9,444,000
2011 Non-Employee Directors Stock Option Plan [Member] | Non-employee director [Member] | January 31, 2022 [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	$ 1.87
Shares purchased under option plan	$ 20,000
Stock option plan, expiration date	Jan. 31, 2022

Unproved Oil and Gas Properti25

Unproved Oil and Gas Properties, Full Cost Method (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Excluded from amortization base:
Inventory, and other operational related costs	$ 1,620	$ 1,312
Capitalized salary costs	1,218	1,177
Legal costs, license fees and other preparation costs	2,591	2,506
Other costs	30	27
Total unproved oil and gas properties, full cost method	$ 5,459	$ 5,022

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) - USD ($)	Apr. 29, 2015	Sep. 17, 2014	Mar. 04, 2014	Dec. 03, 2013	Dec. 22, 2015	Mar. 31, 2016
Commitments and Contingencies [Line Items]
Existing onshore license holders for performance guarantee guidelines requirement				$ 930,000
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
Bank guarantees to government						$ 1,131,000
Bank guarantees to others						67,000
Aggregate guarantee amount						$ 1,198,000
VAT obligation					$ 550,000
Settlement amount	$ 550,000		$ 550,000
Interest accrued	237,000
Exception of reimbursement to Zion					$ 47,500
Provision for company's liability	$ 910,000
Interest on Debt [Member]
Commitments and Contingencies [Line Items]
Description of interest rate per day						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 was not determinable until resolution 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.
November 30, 2014 [Member]
Commitments and Contingencies [Line Items]
On shore license holders base guarantee value		250,000
March 31, 2015 [Member]
Commitments and Contingencies [Line Items]
On shore license holders base guarantee value		$ 250,000

Senior Convertible Bonds Righ27

Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) (Narrative) (Details) - USD ($)	May. 02, 2016	Oct. 21, 2015	Mar. 31, 2016
Debt Instrument [Line Items]
Debt conversion, description			Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest. The indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving us) occurs and is continuing, the holders of at least a majority in principal amount of the outstanding Notes by written notice to us and AST, as trustee, or AST, on behalf of and as requested by such holders, may declare 100% of the principal of and accrued and unpaid interest, if any, on all of the Convertible Notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. In case of certain events of bankruptcy, insolvency or reorganization, involving us or a significant subsidiary, 100% of the principal of and accrued and unpaid interest on the notes will automatically become due and payable.
10% Convertible senior bonds [Member]
Debt Instrument [Line Items]
Debt conversion, description			At any time prior to the close of business on the business day immediately preceding April 2, 2021, holders may convert their Notes into Common Stock, in multiples of $100 principal amount, at the conversion rate of 44 shares per $100 bond. (which is equivalent to $2.27 per share).
10% Convertible senior bonds [Member] | Right offering [Member]
Debt Instrument [Line Items]
Convertible senior bonds percentage		10.00%
Subscriptions shares		360,000
Debt instrument, maturity date			May 2, 2021
Debt instrument payment description			The number of shares for the payment of interest in shares of Common Stock, in lieu of the cash amount, shall be based on the average of the closing prices of the Company's Common Stock as reported by Bloomberg L.P. for the 30 trading days preceding the record date for the payment of interest, which we have designated as 10 business days prior to the interest payment date on May 2 of each year. The number of shares for the payment of principal and unpaid interest, in lieu of the cash amount, shall be based upon the average of the closing price of the Company's Common Stock as reported by Bloomberg L.P. for the 30 trading days preceding the principal repayment date, which we have designated as the trading day immediately prior to the 30 day period preceding the maturity date of May 2, 2021.
Debt instrument redemption description			The Company is entitled to redeem for cash the outstanding Notes at an amount equal to the outstanding principal and accrued and unpaid interest, plus a 10% premium.
Convertible senior bonds par value		$ 100
Convertible bonds purchase price		$ 100
Cash held in escrow			$ 815,000
Debt conversion, description			Under the new rights offering, the Company distributed at no cost, 360,000 non-transferable subscription rights to subscribe for, on a per right basis, two 10% Convertible Senior Bonds par $100 due May 2, 2021 (the "Notes"), to persons who owned shares of the Company's Common Stock on October 15, 2015, the record date for the offering. Each whole subscription right entitled the participant to purchase two convertible bonds at a purchase price of $100.00 per bond.
10% Convertible senior bonds [Member] | Right offering [Member] | Subsequent event [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	May 2, 2021
Principal amount	$ 3,470,000
Expenses from rights offering	136,000
Procceds from issuance senior of unsecured notes	$ 3,334,000
Senior unsecured notes interest rate	10.00%

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - Subsequent event [Member] - USD ($)	Apr. 04, 2016	Apr. 30, 2016	May. 15, 2016	May. 02, 2016
Subsequent Event [Line Items]
Convertible bond				$ 3,470,000
Bank deposited			$ 10,500
Amount collected from DSPP		$ 450,000
2011 Equity Incentive Plan [Member]
Subsequent Event [Line Items]
Shares granted under Equity Incentive Plan (in shares)	10,000
Exercise price of common stock	$ 0.01
Fair value of stock options	$ 18,000
Description of options vesting	The options vested in equal quarterly installments over four consecutive quarters, beginning with the quarter ended June 30, 2016 and are exercisable through April 3, 2026.