Zion Oil & Gas Reports Decrease in Net Loss and Improved Financial Position for Q1 2025

Zion Oil & Gas, Inc. reported a net loss of approximately $1.675 million for the three months ended March 31, 2025, a decrease from a net loss of $1.762 million during the same period in 2024. The company's operating costs and expenses totaled $1.700 million, down from $1.774 million year-over-year, primarily due to a reduction in general and administrative expenses, which fell to $1.101 million from $1.175 million. The decrease in expenses was attributed to lower costs associated with stock option grants. Despite the ongoing geopolitical tensions in the region, Zion continues to focus on its exploration activities, particularly the MJ-01 well re-completion project.

As of March 31, 2025, Zion's total assets increased to $35.966 million from $31.794 million at the end of 2024, driven by a rise in cash and cash equivalents, which reached $5.058 million compared to $2.272 million at the end of the previous year. The company’s working capital also improved significantly, amounting to $5.392 million, up from $1.702 million. This financial position was bolstered by proceeds from the Dividend Reinvestment and Stock Purchase Plan (DSPP), which raised approximately $6.040 million during the first quarter of 2025, compared to $3.557 million in the same quarter of 2024.

Zion's operational developments include the ongoing re-completion of the MJ-01 well, which has faced various challenges, including logistical issues and crew visa complications due to the regional conflict. The company has successfully completed critical maintenance and preparatory work on its drilling rig and has observed gas during early flowback testing. Zion anticipates progressing through well completion and testing operations in the second quarter of 2025, contingent on the geopolitical situation and the availability of necessary equipment.

The company has also made strategic moves to enhance its operational capabilities, including the incorporation of new subsidiaries for drilling services and the approval of a new exploration license, Megiddo Valleys License 434, which covers approximately 75,000 acres. This license is valid for three years with potential extensions, allowing Zion to continue its exploration efforts in Israel. However, the company acknowledges that its ability to continue operations is dependent on securing additional financing, as it has historically funded its activities through equity and debt financing.

Looking ahead, Zion Oil & Gas remains focused on its exploration and development activities while navigating the complexities posed by the current geopolitical climate. The company has expressed optimism about its operational progress and the potential for future production, although it recognizes the inherent uncertainties and risks associated with its business model and the broader market conditions.