Zion Oil & Gas (ZNOG) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 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	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		40,949,361

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 4,468	$ 2,871
Fixed short term bank deposits - restricted	1,276	1,301
Prepaid expenses and other	227	360
Deferred offering cost (see Note 7)	82	134
Other receivables	129	374
Total current assets	6,182	5,040
Unproved oil and gas properties, full cost method	5,864	5,022
Property and equipment at cost Net of accumulated depreciation of $503 and $473	129	144
Other assets
Assets held for severance benefits	255	226
Total assets	12,430	10,432
Current liabilities
Accounts payable	73	396
Asset retirement obligation	201	204
Derivative liability (see Note 8)	1,124
Accrued liabilities	401	853
Total current liabilities	1,799	1,453
Long-term liabilities
10% Senior convertible bonds, net of deferred financing cost of $131 and debt discount of $1,626 (see Note 6)	1,733
Provision for severance pay	285	249
Total long-term liabilities	2,018	249
Total liabilities	3,817	1,702
Commitments and contingencies (see Note 5)
Stockholders' equity
Common stock, par value $.01; Authorized: 200,000,000 shares at June 30, 2016: Issued and outstanding: 40,470,948 and 38,220,258 shares at June 30, 2016 and December 31, 2015 respectively	405	382
Additional paid-in capital	155,332	150,450
Accumulated deficit	(147,124)	(142,102)
Total stockholders' equity	8,613	8,730
Total liabilities and stockholders' equity	$ 12,430	$ 10,432

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Property and equipment, accumulated depreciation	$ 503	$ 473
Deferred financing cost, net	131
Debt discount	$ 1,626
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	200,000,000	200,000,000
Common stock, issued	40,470,948	38,220,258
Common stock, outstanding	40,470,948	38,220,258

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statements of Operations [Abstract]
General and administrative	$ 3,260	$ 1,007	$ 4,432	$ 2,862
Other	614	1,077	1,005	1,608
Loss from operations	(3,874)	(2,084)	(5,437)	(4,470)
Other income (expense), net
Gain on derivative liability	502		502
Foreign exchange (loss), gain	(10)	16	11	3
Financial expenses, net	(88)	(10)	(98)	(20)
Loss before income taxes	(3,470)	(2,078)	(5,022)	(4,487)
Income taxes
Net loss	$ (3,470)	$ (2,078)	$ (5,022)	$ (4,487)
Net loss per share of common stock - basic and diluted (in US$)	$ (0.08)	$ (0.06)	$ (0.12)	$ (0.12)
Weighted-average shares outstanding - basic and diluted (in thousands)	40,873	36,467	40,337	36,270

Statements of Changes In Stockh

Statements of Changes In Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 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	2,101	$ 12	2,089
Funds received from sale of DSPP units and shares (in shares)		1,196
Funds received from option exercises	11	$ 11
Funds received from option exercises (in shares)		1,055
Value of options granted to employees, directors and others	2,793		2,793
Net loss	(5,022)			(5,022)
Ending Balances at Jun. 30, 2016	$ 8,613	$ 405	$ 155,332	$ (147,124)
Ending Balances (in shares) at Jun. 30, 2016		40,471

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (5,022)	$ (4,487)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation	31	31
Cost of options issued to employees, directors & others	2,580	441
Interest on short term bank deposits	(6)	2
Interest and finance expense accrued on convertible bonds	81
Change in derivative liability	(502)
Change in assets and liabilities, net:
Prepaid expenses and other	133	87
Change in other receivables	245	156
Severance pay, net	7	(4)
Accounts payable	(320)	51
Accrued liabilities	(509)	854
Asset retirement obligation	(3)	337
Net cash used in operating activities	(3,285)	(2,532)
Cash flows from investing activities
Investment in short term bank deposits	31	531
Acquisition of property and equipment	(16)	(4)
Investment in unproved oil and gas properties	(631)	(393)
Net cash (used in) provided by investing activities	(616)	134
Cash flows from financing activities
Proceeds from sale of 10% Senior Convertible Bonds	3,470
Deferred offering cost	(84)	(4)
Proceeds from sale of stock and exercise of options	2,112	1,659
Net cash provided by financing activities	5,498	1,655
Net increase (decrease) in cash and cash equivalents	1,597	(743)
Cash and cash equivalents - beginning of period	2,871	5,344
Cash and cash equivalents - end of period	4,468	4,601
Non-cash investing and financing activities:
Cost of options capitalized to oil & gas properties	213	7
Unpaid investments in oil & gas properties	53	47
Debt discount related to the derivative liability	1,626
Deferred offering cost	$ 136

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 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 June 30, 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 currently plans to spud within the fourth 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 7). 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 On June 28, 2016, the Company submitted a third Application for Extension of Drilling Date, and on July 4, 2016, the Petroleum Commissioner formally approved the application (See Note 9). On May 15, 2016, the Company signed an agreement with the local kibbutz (Sde Eliyahu) on whose property the drilling pad will be situated. The Company still 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 the ILA all of the requisite applications and, on July 4, 2016, formal approval from the ILA was received subject to the Company fulfilling certain conditions within 60 days, which the Company expects to satisfy. These are critical agreements that are necessary before the planned Megiddo-Jezreel #1 well can be spud (commence drilling). Zion’s Former Jordan Valley, Joseph, and Asher-Menashe Licenses On March 29, 2015, the Energy Ministry formally approved the Company’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 six months ended June 30, 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 six months ended June 30, 2016, the Company incurred a net loss of approximately $5.0 million and had an accumulated deficit of approximately $147.1 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 available cash resources are sufficient to finance its plan of operations through October 2016 (See Note 7). To carry out further planned operations beyond that date, the Company must raise additional funds through additional equity and/or debt issuances. In June 2016, the Company commenced the Follow On Public Offering discussed in Note 7 below. There can be no assurance that this capital will be available from the Follow On Public Offering or otherwise, 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	6 Months Ended
	Jun. 30, 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 7,076,929 and 5,358,681 Common Stock equivalents in the six-month period ended June 30, 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 $5,864,000 and $5,022,000 as of June 30, 2016 and December 31, 2015, respectively. D. Fair Value Considerations The Company follows Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures,” as amended by Financial Accounting Standards Board (FASB) Financial Staff Position (FSP) No. 157 and related guidance. Those provisions relate to the Company’s financial assets and liabilities carried at fair value and the fair value disclosures related to financial assets and liabilities. ASC 820 defines fair value, expands related disclosure requirements, and specifies a hierarchy of valuation techniques based on the nature of the inputs used to develop the fair value measures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, assuming the transaction occurs in the principal or most advantageous market for that asset or liability. There are three levels of inputs to fair value measurements - Level 1, meaning the use of quoted prices for identical instruments in active markets; Level 2, meaning the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; and Level 3, meaning the use of unobservable inputs. E. Derivative Liabilities In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, the embedded derivatives associated with the Convertible Bonds is accounted for as liability during the term of the related Convertible Bonds. F. Recently Adopted Accounting Pronouncements The Company does 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, except for Update No. 2015-03—Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 3 - Stockholders’ Equity A. 2011 Equity Incentive Plan for employees and consultants During the six months ended June 30, 2016, the Company granted the following options from the 2011 Equity Incentive Plan for employees, directors 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 January 1, 2026. 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. iv. 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. v. 1,540,000 shares of Common Stock to senior officers, other staff members, directors and service providers at an exercise price of $0.01. The options vested upon grant and are exercisable through June 5, 2026. The fair value of the options at the date of grant amounted to approximately $2,258,000. B. 2011 Non-Employee Directors Stock Option Plan During the six months ended June 30, 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. ii. 400,000 shares of Common Stock to non-employee directors at an exercise price of $1.55 per share. The options vested upon grant and are exercisable through June 5, 2022. The fair value of the options at the date of grant amounted to approximately $354,000. C. Stock Options The stock option transactions since January 1, 2016 are shown in the table below: Weighted average Number of shares exercise US$ Outstanding, December 31, 2015 3,629,693 1.76 Changes during 2016 to: Granted to employees, officers, directors and others 2,060,000 0.29 Expired/Cancelled/Forfeited (174,750 ) 2.72 Exercised (1,049,500 ) 0.01 Outstanding, June 30, 2016 4,465,443 1.47 Exercisable, June 30, 2016 4,457,943 1.47 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 29,500 8.80 0.01 - - - - 0.01 15,000 7.95 0.01 - - - - 0.01 45,000 7.75 0.01 - - - - 0.01 40,000 7.37 0.01 - - - - 0.01 20,000 3.59 0.01 - - - - 0.01 51,000 9.10 0.01 - - - - 0.01 75,000 9.26 0.01 - - - - 0.01 25,000 9.50 0.01 - - - - 0.01 830,000 9.93 0.01 - - - - 1.38 108,000 4.51 1.38 - - - - 1.38 149,750 8.52 1.38 - - - - 1.55 400,000 5.93 1.55 - - - - 1.67 390,000 4.26 1.67 - - - - 1.67 492,193 8.26 1.67 - - - - 1.70 333,500 6.48 1.70 - - - - 1.70 120,000 2.48 1.70 - - - - 1.73 25,000 2.53 1.73 - - - - 1.82 25,000 0.95 1.82 - - - - 1.86 25,000 2.43 1.86 - - - - 1.87 25,000 5.59 1.87 - - - - 1.95 25,000 3.76 1.95 - - - - 1.96 25,000 3.18 1.96 - - - - 2.03 25,000 4.84 2.03 - - - - 2.28 25,000 3.03 2.28 - - - - 2.61 150,000 1.43 2.61 - - - - 2.61 981,500 5.43 2.61 0.01 7,500 9.76 0. 01 0.01-2.61 4,457,943 1.47 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, 2016 and 2015, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the six months ended June 30, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.57 $ 1.54 Dividend yields - - Expected volatility 57%-69 % 68%-70 % Risk-free interest rates 0.94%-1.76 % 0.97%-1.61 % Expected lives (in years) 3.00-5.50 3.00-5.50 Weighted-average grant date fair value $ 1.34 $ 1.06 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, 2016 and 2015, using the Black Scholes option-pricing model and the weighted-average assumptions used for such grants: For the six months ended June 30, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.55 $ 1.63 Dividend yields - - Expected volatility 70 % 72%-74 % Risk-free interest rates 1.73 % 1.87%-2.12 % Expected lives (in years) 10.00 10.00 Weighted-average grant date fair value $ 1.54 $ 1.50 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 six months ended June 30, 2016 2015 US$ US$ 2,469,000 410,000 The following table sets forth information about the compensation cost of all option issuances recognized for non-employees: For the six months ended June 30, 2016 2015 US$ US$ 324,000 38,000 As of June 30, 2016, 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 period of 2016 and 2017. 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 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. The number of warrants are not of a sufficient quantity to justify OTC (over the counter) trading. The warrants became first exercisable on May 2, 2016 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. The Company issued approximately 94,000 shares of its Common Stock during 2016, resulting in cash proceeds of approximately $94,000. Through the six months ended June 30, 2016, approximately $2,007,000 has been raised under the DSPP program. As a result, the Company issued approximately 1,102,000 shares of its Common Stock during the same period. Additionally, warrants for approximately 286,000 shares of Common Stock were issued during the six months ended June 30, 2016 (approximately 95,000 each of ZNWAB, ZNWAC, and ZNWAD). The total amount of funds received from the DSPP, including the exercise of warrants, from the inception date through June 30, 2016 is approximately $10,788,000. F. Warrant Descriptions The price and the expiration dates for the series of warrants to investors are as follows: Period of Grant US$ 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. 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 warrants are again listed on NASDAQ for trading.

Unproved Oil and Gas Properties

Unproved Oil and Gas Properties, Full Cost Method	6 Months Ended
	Jun. 30, 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: June 30, December 31, US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 1,631 1,312 Capitalized salary costs 1,474 1,177 Legal costs, license fees and other preparation costs 2,729 2,506 Other costs 30 27 5,864 5,022

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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, the company 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, since as of June 30, 2016, it has not received a specific payment request from the Commissioner. 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. On May 16, 2016, the Energy Ministry issued new guidelines for the preparation and submission of a drilling program in accordance with industry best practices or “Good Oilfield Practice.” On May 17, 2016, the Energy Ministry issued new guidelines for production testing in accordance with “Good Industry Practice” detailing the applicable measures and reporting requirements. On June 28, 2016, the Energy Ministry issued new guidelines for occupational health and safety practices regarding oil and gas drilling and production activities per international norms, coupled with Israeli legal safety guidelines. These regulations focus on industry best practices in the area of health, safety, and environmental (HS&E) factors as well as risk management. In addition, there is a new requirement to have the Petroleum Commissioner’s approval over the safety standards which the operator seeks to apply. The Company believes that these new regulations are likely increase the expenditures associated with obtaining new exploration rights and drilling new wells. The company expects that additional financial burden could occur as a result of requiring cash reserves that could otherwise be used for operational purposes. These new regulations are likely to increase the time needed to obtain all of the necessary authorizations and approvals prior to drilling. C. Bank Guarantees As of June 30, 2016, the Company provided bank guarantees to various governmental bodies (approximately $1,117,000) and others (approximately $78,000) in respect of its drilling operation in an aggregate amount of approximately $1,195,000. 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.”

Rights Offering Senior Converti

Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016)	6 Months Ended
	Jun. 30, 2016
Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) [Abstract]
Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016)	Note 6 - Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 – March 31, 2016) Rights Offering -10% Senior Convertible Notes due May 2, 2021 On October 21, 2015, the Company filed with the SEC a prospectus supplement for a rights offering. Under the 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 due May 2012”), 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 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 due May 2021 in connection with the rights offering. The Company received net proceeds of approximately $3,334,000, from the sale of the Notes, after deducting fees and expenses of $136,000 incurred in connection with the rights offering. These costs have been discounted as deferred offering costs. The Notes contain a convertible option that gives rise to a derivative liability, which is accounted for separately from the Notes (see below and Note 8). Accordingly, the Notes were initially recognized at fair value of approximately $1,844,000, which represents the principal amount of $3,470,000 deducted by a debt discount of approximately $1,626,000 (which is equal to the fair value of the convertible option). During the three months ended June 30, 2016, the Company recorded approximately $5,000 in amortization expense related to the deferred financing costs, and approximately $20,000 in debt discount amortization, net. 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 cash or 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, will 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; such record date has been designated and will always be the 10 th 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 at the conversion rate of 44 shares per $100 bond (which is equivalent to a conversion rate of $2.27 per share). The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of stock dividends and payment of cash dividends. Beginning May 3, 2018, the Company is entitled to redeem for cash the outstanding Notes due May 2021 at an amount equal to the principal and accrued and unpaid interest, plus a 10% premium. No “sinking fund” is provided for the Notes due May 2021, which means that the Company is not required to periodically redeem or retire the Notes due May 2021. June 30, 2016 December 31, 2015 US$ Total US$ Total 10% Senior Convertible Bonds, net of debt discount on derivative liability of $1,626,000 on the day of issuance $ 1,844,000 $ 1,844,000 - - Debt discount amortization, net $ 20,000 $ 20,000 - - Offering cost, net $ (131,000 ) $ (131,000 ) - - 10% senior Convertible bonds – Long Term Liability $ 1,733,000 $ 1,733,000 - - For the second quarter ended June 30, 2016, the Company recognized interest expense of approximately $56,000 related to the Notes due May 2021, Payable for the first time and in arrears on May 2, 2017.

12% Convertible Bonds Public Of

12% Convertible Bonds Public Offering (May 31st- ongoing)	6 Months Ended
	Jun. 30, 2016
12% Convertible Bonds Public Offering (May 31st- ongoing) [Abstract]
12% Convertible Bonds Public Offering (May 31st- ongoing)	Note 7 - 12% Convertible Bonds Public Offering (May 31 st Current Follow On Public Offering - 12% Senior Convertible Bonds due October 2, 2028 On May 31, 2016, the Company filed with the SEC a Prospectus Supplement, as subsequently amended on June 22, 2016 on a "best efforts minimum/maximum offering,” The Bonds will be issued upon closing of the offering and will be scheduled to mature on October 2, 2028 (unless the Company elects to extend the offering). The Bonds will bear interest at a rate of 12% per year on the principal or par value of $1,000.00 per Bond, payable annually in arrears on October 2 (if the final closing date is not extended) of each year, beginning on October 2, 2017. Interest and principal may be repaid, at the Company’s option in cash or 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, will 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; such record date has been designated and will always be the 10 th At any time prior to the close of business on the business day immediately preceding the 30th day prior to the scheduled maturity date, holders may convert their Bonds into Common Stock at the conversion rate which will be based on the price of the Company’s Common Stock for the 30 trading day period preceding the effective date of the offering of the Bonds, plus a 30% premium, unless we elect to redeem the Bonds. The Company is authorized to redeem the Bonds at any time after the third anniversary of their issuance at par plus any accrued interest plus 10% of par. If the Company undergoes certain specified corporate changes, Bondholders may require the Company to repurchase for cash all or any portion of their Bonds at a price equal to 100% of the principal amount of the Bonds, plus accrued and unpaid interest. The Bonds will represent unsecured debt obligations and will rank equally in right of payment with the outstanding 10% Senior Convertible Notes due May 2, 2021 in the aggregate amount of approximately $3,470,000. Network 1’s compensation will consist of a commission of 6% and a non-accountable expense allowance of 1.5% of the offering proceeds. In addition, Network 1 is entitled to be issued at closing of the offering three year warrants covering five percent (5%) of the total number of Bonds sold in the Offering. The Warrants will be exercisable at a price equal to one hundred twenty-five percent (125%) of the conversion price of the shares underlying the Bonds. The warrants will provide for cashless exercise. In connection with the “best efforts” offering, the Company incurred to date approximately $82,000 of deferred issuance costs, which primarily consisted of underwriter fees, legal and other professional service fees.

Derivative Liability

Derivative Liability	6 Months Ended
	Jun. 30, 2016
Derivative Liability [Abstract]
Derivative Liability	Note 8 - Derivative Liability The Notes due May 2021 issued by the Company and discussed in Note 6 contain a convertible option that gives rise to a derivative liability. The debt instrument the company issued includes some form of a make-whole provision, which provides that in the event of conversion by the investor under certain circumstances, the issuer is required to deliver to the holder additional consideration beyond the settlement of the conversion obligation. Because time value make-whole provisions are not clearly and closely related to the debt host and would meet the definition of a derivative if considered freestanding, they should be evaluated under the indexation guidance to determine whether they would be afforded the scope exception pursuant to ASC 815-10-15-74(a). This evaluation is generally performed in conjunction with the analysis of the embedded conversion feature. The Company has measured its derivative liability at fair value and recognized the derivative value as a current liability and recorded the derivative value on its balance sheet. The fair value of the shares to be issued upon conversion of the Notes was recorded as a derivative liability, with the change in the fair value recorded as a gain or loss in the accompanying statement of operations. The valuation of the Notes was done by using the Binomial Model, a well-accepted option-pricing model, and based on the Notes’ terms and other parameters the Company identified as relevant for the valuation of the Notes’ Fair Value. The Binomial Model used the forecast of the Company share price during the Note’s contractual term. As of June 30, 2016, the Company’s liabilities that are measured at fair value are as follows: June 30, 2016 December 31, 2015 Level 3 Total Level 3 Total US$ US$ Fair value of derivative liability at June 30, 2016 $ 1,124,000 $ 1,124,000 - - Change in value of derivative liability during 2016 are as follows: US$ thousands Derivative liability fair value at May 2, 2016 1,626 Gain on derivative liability (502 ) Derivative liability fair value at June 30, 2016 1,124 The following table presents the assumptions that were used for the model as of June 30, 2016: June 30, May 2, Convertible Option Fair Value of approximately $ 1,124,000 $ 1,626,000 Annual Risk-free Rate 1.05 1.41 % Volatility 60.03 63.15 % Expected Term (years) 4.84 5 Convertible Notes Face Value $ 3,470,000 $ 3,470,000 Expected annual yield on Regular Notes 28.77 % 28.77 % Price of the Underlying Stock $ 1.39 $ 1.74 During the six months ended June 30, 2016, the Company recorded unrealized gains of approximately $502,000 within the Statements of Operations line item, gain on derivative liability.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 9 - Subsequent Events Approximately $473,000 was raised through the Company’s DSPP program during the period July 1, 2016 through July 31, 2016. On July 1, 2016, following approval by the Board of Directors on June 7, 2016 appointing Mr. Dustin L. Guinn to the Company’s management team as Executive Vice Chairman, his Employment Agreement was executed. Mr. Guinn was previously appointed as an independent director on May 1, 2015. On July 1, 2016, the Company granted options from the 2011 Equity Incentive Plan for employees and consultants, to purchase 100,000 shares of Common Stock to a senior officer at an exercise price of $0.01. The options vested upon grant and are exercisable through July 1, 2026. The fair value of the options at the date of grant amounted to approximately $147, 000. On July 4, 2016, the Petroleum Commissioner formally approved the Company’s third Application for Extension of Drilling Date (Megiddo-Jezreel License No. 401), submitted on June 28, 2016. The updated work plan reads as follows: No. Activity Description To be carried out by: 1 Sign a contract with drilling contractor and forward to Petroleum Commissioner 13 October 2016 2 Submit detailed Engineering Plan to carry out the drilling 13 October 2016 3 Spudding in the license area 1 December 2016 4 Submit a final report on the results of the drilling 1 May 2017 5 Submit a plan for continued work in the license area 29 June 2017 The Petroleum Commissioner modified Zion’s work plan deadlines and awarded the Company a one-year extension to December 2, 2017, on its Megiddo-Jezreel petroleum exploration license, subject to Zion signing a drilling contract and submitting a detailed engineering plan by October 13, 2016 and spudding an exploratory well by December 1, 2016.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 7,076,929 and 5,358,681 Common Stock equivalents in the six-month period ended June 30, 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 $5,864,000 and $5,022,000 as of June 30, 2016 and December 31, 2015, respectively.
Fair Value Considerations	D. Fair Value Considerations The Company follows Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures,” as amended by Financial Accounting Standards Board (FASB) Financial Staff Position (FSP) No. 157 and related guidance. Those provisions relate to the Company’s financial assets and liabilities carried at fair value and the fair value disclosures related to financial assets and liabilities. ASC 820 defines fair value, expands related disclosure requirements, and specifies a hierarchy of valuation techniques based on the nature of the inputs used to develop the fair value measures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, assuming the transaction occurs in the principal or most advantageous market for that asset or liability. There are three levels of inputs to fair value measurements - Level 1, meaning the use of quoted prices for identical instruments in active markets; Level 2, meaning the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; and Level 3, meaning the use of unobservable inputs.
Derivative Liabilities	E. Derivative Liabilities In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity, the embedded derivatives associated with the Convertible Bonds is accounted for as liability during the term of the related Convertible Bonds.
Recently Adopted Accounting Pronouncements	F. Recently Adopted Accounting Pronouncements The Company does 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, except for Update No. 2015-03—Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 2,060,000 0.29 Expired/Cancelled/Forfeited (174,750 ) 2.72 Exercised (1,049,500 ) 0.01 Outstanding, June 30, 2016 4,465,443 1.47 Exercisable, June 30, 2016 4,457,943 1.47
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 7,500 9.76 0.01 0.01 2,500 9.76 0.01 - - - - 0.01 29,500 8.80 0.01 - - - - 0.01 15,000 7.95 0.01 - - - - 0.01 45,000 7.75 0.01 - - - - 0.01 40,000 7.37 0.01 - - - - 0.01 20,000 3.59 0.01 - - - - 0.01 51,000 9.10 0.01 - - - - 0.01 75,000 9.26 0.01 - - - - 0.01 25,000 9.50 0.01 - - - - 0.01 830,000 9.93 0.01 - - - - 1.38 108,000 4.51 1.38 - - - - 1.38 149,750 8.52 1.38 - - - - 1.55 400,000 5.93 1.55 - - - - 1.67 390,000 4.26 1.67 - - - - 1.67 492,193 8.26 1.67 - - - - 1.70 333,500 6.48 1.70 - - - - 1.70 120,000 2.48 1.70 - - - - 1.73 25,000 2.53 1.73 - - - - 1.82 25,000 0.95 1.82 - - - - 1.86 25,000 2.43 1.86 - - - - 1.87 25,000 5.59 1.87 - - - - 1.95 25,000 3.76 1.95 - - - - 1.96 25,000 3.18 1.96 - - - - 2.03 25,000 4.84 2.03 - - - - 2.28 25,000 3.03 2.28 - - - - 2.61 150,000 1.43 2.61 - - - - 2.61 981,500 5.43 2.61 0.01 7,500 9.76 0. 01 0.01-2.61 4,457,943 1.47
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 months ended June 30, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.55 $ 1.63 Dividend yields - - Expected volatility 70 % 72%-74 % Risk-free interest rates 1.73 % 1.87%-2.12 % Expected lives (in years) 10.00 10.00 Weighted-average grant date fair value $ 1.54 $ 1.50
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 months ended June 30, 2016 2015 US$ US$ 324,000 38,000
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 months ended June 30, 2016 2015 Weighted-average fair value of underlying stock at grant date $ 1.57 $ 1.54 Dividend yields - - Expected volatility 57%-69 % 68%-70 % Risk-free interest rates 0.94%-1.76 % 0.97%-1.61 % Expected lives (in years) 3.00-5.50 3.00-5.50 Weighted-average grant date fair value $ 1.34 $ 1.06
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 months ended June 30, 2016 2015 US$ US$ 2,469,000 410,000

Unproved Oil and Gas Properti18

Unproved Oil and Gas Properties, Full Cost Method (Tables)	6 Months Ended
	Jun. 30, 2016
Unproved Oil and Gas Properties, Full Cost Method [Abstract]
Schedule of Unproved Oil and Gas Properties, Full Cost Method	June 30, December 31, US$ thousands US$ thousands Excluded from amortization base: Inventory, and other operational related costs 1,631 1,312 Capitalized salary costs 1,474 1,177 Legal costs, license fees and other preparation costs 2,729 2,506 Other costs 30 27 5,864 5,022

Rights Offering Senior Conver19

Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) (Tables)	6 Months Ended
	Jun. 30, 2016
Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) [Abstract]
Schedule of convertible debt	June 30, 2016 December 31, 2015 US$ Total US$ Total 10% Senior Convertible Bonds, net of debt discount on derivative liability of $1,626,000 on the day of issuance $ 1,844,000 $ 1,844,000 - - Debt discount amortization, net $ 20,000 $ 20,000 - - Offering cost, net $ (131,000 ) $ (131,000 ) - - 10% senior Convertible bonds – Long Term Liability $ 1,733,000 $ 1,733,000 - -

Derivative Liability (Tables)

Derivative Liability (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Liability [Abstract]
Schedule of fair value of derivative liabilities	June 30, 2016 December 31, 2015 Level 3 Total Level 3 Total US$ US$ Fair value of derivative liability at June 30, 2016 $ 1,124,000 $ 1,124,000 - -
Schedule of change in fair value of derivative liability	US$ thousands Derivative liability fair value at May 2, 2016 1,626 Gain on derivative liability (502 ) Derivative liability fair value at June 30, 2016 1,124
Summary of assumption used for the model of derivatives liabilities	June 30, May 2, Convertible Option Fair Value of approximately $ 1,124,000 $ 1,626,000 Annual Risk-free Rate 1.05 1.41 % Volatility 60.03 63.15 % Expected Term (years) 4.84 5 Convertible Notes Face Value $ 3,470,000 $ 3,470,000 Expected annual yield on Regular Notes 28.77 % 28.77 % Price of the Underlying Stock $ 1.39 $ 1.74

Nature of Operations and Basi21

Nature of Operations and Basis of Presentation (Details) $ in Thousands	Dec. 03, 2013	Jun. 30, 2016USD ($)a	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)a	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Nature of Operations and Basis of Presentation [Line Items]
Net loss		$ (3,470)	$ (2,078)	$ (5,022)	$ (4,487)
Accumulated deficit		$ (147,124)		$ (147,124)		$ (142,102)
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]
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				$ 5,000
Accumulated deficit		$ 147,100		$ 147,100

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Summary of Significant Accounting Policies (Textual)
Common stock equivalents excluded from EPS as the inclusion would be anti-dilutive	7,076,929	5,358,681
Common stock, par value	$ 0.01		$ 0.01
Capitalized exploration costs	$ 5,864		$ 5,022

Stockholders' Equity (Stock Opt

Stockholders' Equity (Stock Option Transactions) (Details) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Number of shares
Outstanding, Beginning balance | shares	3,629,693
Granted to employees, officers, directors and others | shares	2,060,000
Expired/Cancelled/Forfeited | shares	(174,750)
Exercised | shares	(1,049,500)
Outstanding, Ending balance | shares	4,465,443
Number of shares Exercisable | shares	4,457,943
Weighted average exercise price
Outstanding, Beginning balance | $ / shares	$ 1.76
Granted to employees, officers, directors and others | $ / shares	0.29
Expired/Cancelled/Forfeited | $ / shares	2.72
Exercised | $ / shares	0.01
Outstanding, Ending balance | $ / shares	1.47
Weighted Average exercise price Exercisable | $ / shares	$ 1.47

Stockholders' Equity (Stock O24

Stockholders' Equity (Stock Options Outstanding) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
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 | shares	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
Unvested [Member] | 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	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	$ 2.61
Shares underlying outstanding options Number outstanding | shares	4,457,943
Shares underlying outstanding options Weighted Average Exercise price	$ 1.83
Vested [Member] | 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 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 | shares	29,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 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 | shares	15,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 years 11 months 12 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 | shares	45,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 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 | shares	40,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	7 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 | shares	20,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 7 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | 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	51,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 1 month 6 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | 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 3 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | 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 6 months
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | Range Exercise Price 0.01 Ten [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	830,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	9 years 11 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 0.01
Vested [Member] | 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 6 months 4 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 | shares	149,750
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 6 months 7 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.38
Vested [Member] | Range Exercise Price 1.55 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares underlying outstanding options range of exercise price	$ 1.55
Shares underlying outstanding options Number outstanding | shares	400,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 11 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.55
Vested [Member] | 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 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 | shares	492,193
Shares underlying outstanding options Weighted average remaining contractual life (years)	8 years 3 months 4 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.67
Vested [Member] | 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	333,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	6 years 5 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.70
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	$ 1.70
Shares underlying outstanding options Number outstanding | shares	120,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 5 months 23 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.70
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	11 months 12 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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	2 years 5 months 5 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.86
Vested [Member] | 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 7 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 1.87
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	4 years 10 months 2 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.03
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 | shares	25,000
Shares underlying outstanding options Weighted average remaining contractual life (years)	3 years 11 days
Shares underlying outstanding options Weighted Average Exercise price	$ 2.28
Vested [Member] | 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 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 | shares	981,500
Shares underlying outstanding options Weighted average remaining contractual life (years)	5 years 5 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	6 Months Ended
	Jun. 30, 2016	Jun. 30, 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	$ 1.55	$ 1.63
Dividend yields
Expected volatility, minimum		72.00%
Expected volatility, maximum		74.00%
Expected volatility	70.00%
Risk-free interest rates, minimum		1.87%
Risk-free interest rates, maximum		2.12%
Risk-free interest rates	1.73%
Expected lives (in years)	10 years	10 years
Weighted-average grant date fair value	$ 1.54	$ 1.50
Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of underlying stock at grant date	$ 1.57	$ 1.54
Dividend yields
Expected volatility, minimum	57.00%	68.00%
Expected volatility, maximum	69.00%	70.00%
Risk-free interest rates, minimum	0.94%	0.97%
Risk-free interest rates, maximum	1.76%	1.61%
Weighted-average grant date fair value	$ 1.34	$ 1.06
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 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, 2016	Jun. 30, 2015
Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances	$ 2,469,000	$ 410,000
Non-Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost of warrant and option issuances	$ 324,000	$ 38,000

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Warrants Description) (Details) - ZNWAA Warrants [Member]	6 Months Ended
	Jun. 30, 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 ($)	6 Months Ended
	Jun. 30, 2016	Jan. 13, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued for exercising warrants, value	$ 11,000
Unrecognized compensation cost	$ 9,000
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
2011 Equity Incentive Plan for employees, directors and consultants [Member] | Senior officers [Member] | January 1, 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	$ 46,000
Stock option plan, expiration date	Jan. 1, 2026
2011 Equity Incentive Plan for employees, directors and consultants [Member] | Senior officers [Member] | June 5, 2026 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)	1,540,000
Shares purchased under option plan price per share	$ 0.01
Shares purchased under option plan	$ 2,258,000
Stock option plan, expiration date	Jun. 5, 2026
2011 Equity Incentive Plan for employees, directors 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, directors and consultants [Member] | Senior officer one [Member] | April 3, 2026 [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. 3, 2026
2011 Equity Incentive Plan for employees, directors 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	$ 10,788,000
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
2011 Non-Employee Directors Stock Option Plan [Member] | Non-employee director [Member] | June 5, 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under option plan (in shares)	400,000
Shares purchased under option plan price per share	$ 1.55
Shares purchased under option plan	$ 354,000
Stock option plan, expiration date	Jun. 5, 2022

Unproved Oil and Gas Properti29

Unproved Oil and Gas Properties, Full Cost Method (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Excluded from amortization base:
Inventory, and other operational related costs	$ 1,631	$ 1,312
Capitalized salary costs	1,474	1,177
Legal costs, license fees and other preparation costs	2,729	2,506
Other costs	30	27
Total unproved oil and gas properties, full cost method	$ 5,864	$ 5,022

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) - USD ($)	Sep. 17, 2014	Dec. 03, 2013	Jun. 30, 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			$ 1,117,000
Bank guarantees to others			78,000
Aggregate guarantee amount			$ 1,195,000
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

Rights Offering Senior Conver31

Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Rights Offering Senior Convertible Bonds Rights Offering [Line Items]
10% Senior Convertible Bonds, net of debt discount on derivative liability of $1,626,000 on the day of issuance	$ 1,844,000
Debt discount amortization, net	20,000
Offering cost, net	(131,000)
10% senior Convertible bonds - Long Term Liability	1,733,000
US [Member]
Rights Offering Senior Convertible Bonds Rights Offering [Line Items]
10% Senior Convertible Bonds, net of debt discount on derivative liability of $1,626,000 on the day of issuance	1,844,000
Debt discount amortization, net	20,000
Offering cost, net	(131,000)
10% senior Convertible bonds - Long Term Liability	$ 1,733,000

Rights Offering Senior Conver32

Rights Offering Senior Convertible Bonds Rights Offering (October 21, 2015 - March 31, 2016) (Narrative) (Details) - USD ($)	May 02, 2016	Oct. 21, 2015	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Principal amount	$ 3,470,000		$ 3,470,000	$ 3,470,000
Convertible bonds			1,844,000	1,844,000
Net of debt discount on derivative liability			1,626,000	1,626,000
Debt discount amortization, net			$ 20,000	$ 20,000
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 at the conversion rate of 44 shares per $100 bond (which is equivalent to a conversion rate of $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		May 31, 2021	May 2, 2021
Debt instrument payment description			Payable for the first time and in arrears on May 2, 2017.	The number of shares for the payment of interest in shares of Common Stock, in lieu of the cash amount, will 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; such record date has been designated and will always be the 10th business day 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; such record date has been 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 due May 2021 at an amount equal to the principal and accrued and unpaid interest, plus a 10% premium.
Convertible senior bonds par value		$ 100
Convertible bonds purchase price		$ 100
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%
Debt conversion, description				Under the 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 due May 2012"), 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 per bond.
Amortization expense			$ 5,000
Interest expense			$ 56,000

12% Convertible Bonds Public 33

12% Convertible Bonds Public Offering (May 31st- ongoing) (Narrative) (Details) - USD ($)	May 02, 2016	Jun. 30, 2016	Jun. 30, 2016	May 31, 2016	Dec. 31, 2015	Oct. 21, 2015
Debt Instrument [Line Items]
Deferred issuance costs		$ 82,000	$ 82,000		$ 134,000
Principal amount	$ 3,470,000	$ 3,470,000	$ 3,470,000
Maximum [Member]
Debt Instrument [Line Items]
Deferred issuance costs				$ 12,000,000
Minimum [Member]
Debt Instrument [Line Items]
Deferred issuance costs				$ 2,500,000
Convertible Debt [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 at the conversion rate of 44 shares per $100 bond (which is equivalent to a conversion rate of $2.27 per share).
Convertible Debt [Member] | Public Offering [Member]
Debt Instrument [Line Items]
Debt instrument payment, Description		Payable for the first time and in arrears on May 2, 2017.	The number of shares for the payment of interest in shares of Common Stock, in lieu of the cash amount, will 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; such record date has been designated and will always be the 10th business day 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; such record date has been designated as the trading day immediately prior to the 30-day period preceding the maturity date of May 2, 2021.
Debt instrument, maturity date	May 2, 2021	May 31, 2021	May 2, 2021
Principal amount	$ 3,470,000
Bonds interest rate	10.00%
Debt conversion, Description			Under the 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 due May 2012"), 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 per bond.
Bonds par value						$ 100
12% Senior Convertible Bonds [Member]
Debt Instrument [Line Items]
Debt conversion, Description			At any time prior to the close of business on the business day immediately preceding the 30th day prior to the scheduled maturity date, holders may convert their Bonds into Common Stock at the conversion rate which will be based on the price of the Company's Common Stock for the 30 trading period preceding the effective date of the offering of the Bonds, plus a 30% premium, unless we elect to redeem the Bonds. The Company is authorized to redeem the Bonds at any time after the third anniversary of their issuance at par plus any accrued interest plus 10% of par. If the Company undergoes certain specified corporate changes, Bondholders may require the Company to repurchase for cash all or any portion of their Bonds at a price equal to 100% of the principal amount of the Bonds, plus accrued and unpaid interest.
12% Senior Convertible Bonds [Member] | Public Offering [Member]
Debt Instrument [Line Items]
Debt instrument payment, Description			The number of shares for the payment of interest in shares of Common Stock, in lieu of the cash amount, will 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; such record date has been designated and will always be the 10th business day prior to the interest payment date on 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; such record date has been designated as the trading day immediately prior to the 30-day period preceding the maturity date of October 2, 2028
Debt instrument, maturity date			Oct. 2, 2028
Bonds interest rate		12.00%	12.00%
Bonds par value		$ 1,000	$ 1,000
Compensation, Description			Compensation will consist of a commission of 6% and a non-accountable expense allowance of 1.5% of the offering proceeds. In addition, Network 1 is entitled to be issued at closing of the offering three year warrants covering five percent (5%) of the total number of Bonds sold in the Offering. The Warrants will be exercisable at a price equal to one hundred twenty-five percent (125%) of the conversion price of the shares underlying the Bonds.

Derivative Liability (Details)

Derivative Liability (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Fair value of derivative liability	$ 1,124,000
Level 3 [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Fair value of derivative liability	$ 1,124,000

Derivative Liability (Details 1

Derivative Liability (Details 1) $ in Thousands	2 Months Ended
	Jun. 30, 2016USD ($)
Derivative Liability [Abstract]
Derivative liability fair value at May 2, 2016	$ 1,626
Gain on derivative liability	(502)
Derivative liability fair value at June 30, 2016	$ 1,124

Derivative Liability (Details 2

Derivative Liability (Details 2) - USD ($)	May 02, 2016	Jun. 30, 2016
Derivative Liability [Abstract]
Convertible Option Fair Value of approximately	$ 1,626,000	$ 1,124,000
Annual Risk-free Rate	1.41%	1.05%
Volatility	63.15%	60.03%
Expected Term (years)	5 years	4 years 10 months 2 days
Convertible Notes Face Value	$ 3,470,000	$ 3,470,000
Expected annual yield on Regular Notes	28.77%	28.77%
Price of the Underlying Stock	$ 1.74	$ 1.39

Derivative Liability (Narrative

Derivative Liability (Narrative) (Details) $ in Thousands	2 Months Ended
	Jun. 30, 2016USD ($)
Derivative Liability (Textual)
Gain on derivative liability	$ 502

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - USD ($)	Jul. 01, 2016	Jul. 31, 2016
Subsequent Event [Line Items]
Amount collected from DSPP		$ 473,000
2011 Equity Incentive Plan [Member]
Subsequent Event [Line Items]
Shares granted under Equity Incentive Plan (in shares)	100,000
Exercise price of common stock	$ 0.01
Fair value of stock options	$ 147,000
Description of options vesting	The options vested upon grant and are exercisable through July 1, 2026.