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BONTAN
CORPORATION, INC. ANNOUNCES COMPLETION OF 2D AND 3D SEISMIC SURVEYS IN THE
LEVANTINE BASIN, OFFSHORE ISRAEL
Toronto, Ontario, December 16,
2009 – Bontan Corporation Inc. (Bontan) (OTCBB:BNTNF) is pleased to
announce that WesternGeco, a business unit of Schlumberger, has completed a 3D
seismic survey on the Mira and Sarah Drilling Licenses and a 2D survey on the
Benjamin Exploration Permit totaling 2,668 square kilometers in the Levantine
Basin, 40 kilometers off the west coast of Israel. The licenses and permit are
owned 95.5% by Israel Petroleum Company, Limited (IPC), in which Bontan owns a
75% interest.
The
WesternGeco Eagle seismic vessel commenced 2D acquisition on the Benjamin
Exploration Permit September 4, 2009 and
completed shooting on September 14, 2009. Twenty nine 2D lines were
acquired covering the 1,863 square kilometer permit area. Preliminary
processing of the 2D seismic data began onboard the Eagle and is continuing at
WesternGeco’s Gatwick processing center in the UK. Once processing is
complete, the 2D data will be integrated into the existing Benjamin seismic,
geologic and well data. The database will then be interpreted in
order to identify the area(s) within Benjamin for conversion from Exploration
Permit to Drilling Licenses status in February 2010. It is
anticipated that one to three such areas for conversion will be
identified. Additional seismic work will be required for any such
areas covered by Drilling Licenses. Conversion is subject to approval
by the Israeli Government that all work requirements have been met.
On
October 26, 2009, the WesternGeco Triton seismic vessel commenced 3D production
shooting on the Mira and Sarah Drilling License areas. The survey was completed
on December 3, 2009. A total of 3,067 line kilometers were acquired
covering the Sara and Mira Drilling Licenses, each License covering 400 square
kilometers. Water depths in the License areas vary from about
1,000-1,500 meters and estimated depth to potential targets varies from
3,500-6,000 meters. Again, processing of acquired seismic data
started onboard the Triton and will continue at WesternGeco’s Gatwick processing
center in the UK. Processing is anticipated to take approximately 5
to 6 months, with additional time required to render a Pre Stack Depth Migration
volume. Once the 3D processing is completed, it will be integrated into the
existing seismic, geologic and well databases over the Sarah and Mira Drilling
Licenses in order to identify potential drilling locations for the first
exploration wells on the two Licenses. IPC intends to farmout its
interest in the Licenses to drilling partners when the seismic interpretation is
complete.
About
the Project Assets
The
Project Assets, composed of interests in the Mira and Sarah Drilling Licenses
and the Benjamin Exploration Permit, are located in the Levantine Basin in the
eastern Mediterranean Sea offshore Israel, near the recently announced natural
gas discoveries in the Tamar 1 and 2, and the Dalit wells. The three
wells were drilled by Noble Energy Inc. (NBL.NYSE), in partnership with Delek
Energy Systems (DEOL.TA), Isramco (ISRA.TA), and Avner Oil and Gas LP
(AVNR.TA). According to published reports, the wells have a reported
6.8 TCF (1.02 BBOE) of estimated proved, probable and possible reserves in their
License area, which makes this the second largest gas discovery in the world
since January 2008. South of the Project Assets in the eastern Mediterranean
offshore Israel are other gas fields, including the Mari-B field, also drilled
by Noble, Delek, and Avner, which reportedly contains 1 TCF (150 MBOE) in
estimated proved, probable and possible reserves.
About
Bontan Corporation Inc.:
Bontan
Corporation Inc. is a Canadian public company based in Toronto, ON which
explores for oil and gas in the Levantine Basin offshore
Israel. Bontan owns, through its wholly owned subsidiary, Bontan Oil
and Gas Corporation, a 71.625% indirect working interest in the Project Assets
via its 75% interest in Israel Petroleum Company, which acquired an undivided
95.5% working interest in the Mira and Sarah Drilling Licenses and the Benjamin
Exploration Permit, subject to approval by Israel’s Ministry of Natural
Infrastructure. The remaining interest in IPC is owned by
International Three Crown Petroleum (22.5%) and Allied Ventures, Inc.
(2.5%).
Bontan
Corporation, Inc. trades in the United States on the OTC Bulletin Board of
NASDAQ under the symbol BNTNF.
For
further information, contact the company’s investor relations, John Robinson at
Current Capital Corp. at 416-860-0211.
Forward-Looking
Statements
This news
release may include forward-looking statements within the meaning of the U.S.
federal and Canadian securities laws. Any such statements reflect Bontan’s
current views and assumptions about future events and financial performance. No
assurances can be given that such future events or performance will occur.
Important risks and factors that could cause actual results or events to differ
materially from those indicated in the forward-looking statements, include,
without limitation, economic and political developments in Israel, approval of
the transfer of the two licenses and permit to IPC by the Israeli Petroleum
Commissioner, reliance on ITC as well as third-party consultants and contractors
to develop the project, the ability of Bontan and IPC to raise sufficient
capital to complete evaluation work and to drill required exploratory wells, the
exploratory and speculative nature of the assets, the risk that no hydrocarbons
may be found or that 2D and 3D seismic may diminish the attractiveness of the
assets, the volatility in commodity prices for crude oil and natural gas, the
presence or recoverability of estimated reserves, geological and geophysical
analysis and interpretation, exploration and development risks, drilling and
operating risks, competition, environmental risks, government regulation or
other action, potential disruption from terrorist activities and warfare in the
region or at the project assets, general economic conditions and other risks set
forth from time to time in Bontan’s filings with the U.S. Securities and
Exchange Commission and securities regulators in Canada. Bontan
assumes no obligation and expressly disclaims any duty to update the information
contained herein.
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