View:
BONTAN
CORPORATION INC.
47 AVENUE RD. SUITE 200
TORONTO, ON M5R 2G3
U.S SECURITIES
AND EXCHANGE COMMISSION
6-K
FILING
NEWS
RELEASE
NEWS
RELEASE
ISRAEL
PETROLEUM COMMISSIONER GRANTS EXTENSION FOR MYRA AND SARAH OFFSHORE OIL AND GAS
LICENSES
Toronto, Ontario, May 19, 2010
– Bontan Corporation Inc. (OTCBB: BNTNF, FSE:BZ3) (”The Company”, “Bontan”) is
pleased to announce that the Israeli Ministry of National
Infrastructure confirms in their letter dated May 16, 2010 that the two offshore
licenses; the “347/Myra” and the “348/ Sarah” in which
Bontan holds an indirect 11% net working interest are fully valid. In addition,
the Ministry approved changes in the work program as submitted by our project
partners Emanuelle Energy Ltd. and IDB-DT Energy (2010).
The work
program (to be submitted in agreed stages over the next 10 months) will begin
with the delivery, completion and interpretation of the 3D seismic data by mid
July 2010.
The Company is also pleased to announce
that its Prospective Resource Evaluation Report prepared in accordance with
National Instrument 51-101, Section 5.9 standards for review and assessment of
prospective resources has been updated as of May 1, 2010 by Chapman Petroleum
Engineering Ltd, an independent Calgary based consulting firm (http://www.chapeng.ab.ca/). According to this report, given
below is an extract from the report relating to the before and after risk
values of the evaluated prospects using forecast prices and
costs:
|
Company Net Value, Thousands of
US Dollars
|
||
|
Before
Risk
Combined
Prospects (2)
|
After
Risk
Combined
Prospects (2)
|
|
|
Undiscounted
|
2,724,476
|
807,494
|
|
Discounted
@ 5%/year
|
1,400,497
|
409,533
|
|
Discounted
@ 10%/year
|
765,264
|
219,700
|
Kam
Shah, CEO of Bontan commented, “We are very pleased with the MNI’s decision with
respect to the Sarah and Myra licenses, which was the result of hard work by our
partners, Emanuelle and IDB-DT and our advisors. We are confident in meeting all
the requirements of the work program and look forward to the future development
of the two licenses with excitement.”
About
the Project Area
The
Offshore Israel Project comprises two Licenses – Sarah and Myra – covering
approximately 310 square miles and is located in the Levantine Basin near the
recent 6.3 TCF Tamar 1, Tamar 2, and the Dalit natural gas
discoveries by Noble Energy Inc.
The right
to the licenses is held by a group comprising Bontan’s majority-owned
subsidiary, Israel Petroleum Company, Limited (“IPC”), Tel Aviv-based Emanuelle
Energy Ltd. (“Emanuelle”) and IDB-DT Energy (2010) Ltd. (“IDB-DT”) Under an
Agreement entered into on March 24, 2010.
The right
to the licenses is currently listed in PetroMed’s name on the registry
maintained by the Israel Ministry of National Infrastructures (“MNI”). PetroMed
is now effectively controlled by one of the group members and has given
unconditional release to the group for transfer of its rights. Conditioned on
the MNI’s transfer approval, IPC, Emanuelle and IDB-DT will receive respective
working interests on the Registry of 14.325%, 54.025% and 27.15% in the
PetroMed’s Share of the Licenses.
About
Bontan Corporation Inc.:
Bontan
Corporation Inc. is an oil and gas exploration company that operates and invests
in exploration prospects. Through its subsidiaries, Bontan seeks
highly visible opportunities in countries around the globe with a history of
natural resource production that offer exciting and attractive
propositions. Bontan seeks to minimize risk by bringing in either
joint venture, carried or working interest partners, depending on the size and
scale of the project.
For
further information please contact John Robinson at (416) 860-0211, or refer to
our website www.bontanoilandgas.com.
Forward-Looking
Statements
This news
release includes 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. Bontan cannot assure that future events or performance
will occur. Important risks and factors that could cause actual
results or events to differ materially from those indicated in our
forward-looking statements, including: the effect of economic and
political developments in Israel; the discretion of the MNI to
cancel, extend the time for compliance with or otherwise waive requirements of,
the Licenses or to reinstate the Permit; the discretion of the MNI to
officially transfer the Licenses on the Registry to IPC and our other partners;
the reliance on Emanuelle, IDB-DT and IPC, as well as third-party consultants
and contractors, to develop the Project; the ability of Bontan and
IPC to raise sufficient capital and demonstrate adequate financial capability to
the MNI, and the associated dilution to current investors’ interests associated
with the issuance of additional debt and equity securities; the risk
that the Data may show or suggest, or that the License sites ultimately may
contain no, or limited amounts of, hydrocarbons; the volatility in
commodity prices for crude oil and natural gas; the presence or
recoverability of estimated reserves; the potential unreliability or
other effects of geological and geophysical analysis and
interpretation; exploration and development, drilling and operating
risks; competition for development of the
Project; environmental risks; government regulation or
other action; potential disruption from terrorist activities or
warfare in the region or at the Project site; general economic
conditions; and other risks we identify from time to time in our
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 in this Press Release.