Zion Oil & Gas Reports $7.63 Million Net Loss for Fiscal Year 2025, Receives New Exploration License

Zion Oil & Gas, Inc. reported a net loss of $7.63 million for the fiscal year ending December 31, 2025, compared to a loss of $7.34 million in the previous year. The company's operating costs and expenses increased to $7.73 million, up from $7.34 million in 2024, primarily driven by a 6% rise in general and administrative expenses, which totaled $4.94 million. Despite these losses, Zion's liquidity improved, with unrestricted cash and cash equivalents rising to approximately $8.31 million from $2.27 million in 2024, and working capital increasing to $9.46 million from $1.70 million.

In terms of strategic developments, Zion received approval for its New Megiddo Valleys License 434 on September 14, 2023, which allows for oil and gas exploration over approximately 75,000 acres. This license supersedes the previous New Megiddo License 428, which expired in February 2023. The new license is valid for three years, with the possibility of four one-year extensions, potentially extending operations until 2030. The company is focusing on the MJ-02 well, utilizing new technologies and stimulation methods to unlock hydrocarbon flows.

Operationally, Zion's workforce consisted of 20 employees and contractors as of December 31, 2025, with 14 based in Dallas and six in Israel. The company has faced challenges due to geopolitical tensions in the region, including the Israel-Hamas and Israel-Iran conflicts, which have impacted its exploration activities. Despite these challenges, Zion's drilling rig and crew remained safe throughout 2025, and the company has secured key services for its operations, although logistics remain complex due to the need for imported equipment and personnel.

Looking ahead, Zion's ability to continue operations is contingent on raising additional capital to fund its exploration and development activities. The company has historically relied on equity financing, raising approximately $21.48 million in 2025 through its Dividend Reinvestment and Stock Purchase Plan. However, the company acknowledges the uncertainty surrounding its ability to secure future funding, particularly given the ongoing geopolitical risks and the need for significant capital to support its exploration efforts. The management's outlook remains cautious, emphasizing the need for continued financing to achieve its operational goals.