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NEWS
RELEASE
BONTAN
RECEIVES ISRAEL OFFSHORE OIL AND GAS LICENSE TRANSFER APPROVAL
Toronto, Ontario, June 17,
2010 – Bontan Corporation Inc. (OTCBB: BNTNF) (”The Company”,
“Bontan”) announces the
following:
347/Myra
and 348/Sarah Licenses
The
Petroleum Commissioner of the Israel Ministry of National Infrastructure (“MNI”)
confirmed on June 16, 2010 that our application for transfer and registration of
the participation rights in the two licenses the 347/Myra and 348/Sarah has been
approved.
Bontan’s
indirect working interest in these licenses is now 10.45% reduced from 11% due
to the sale of a 5% interest to the Operator, Geoglobal Resources (India) Inc.,
(“GGR”) (AMEX: GGR). As previously announced. Bontan’s interest
is held through its 76.79% equity interest in Israel Petroleum Company, Limited,
(“IPC Cayman”) which in turn is the 100% owner of I.P.C. Oil and Gas (Israel)
Limited Partnership, which is now the registered holder of 13.609% interest in
the above licenses.
The
MNI notified our group that our application for the Michal license was not
approved.
Samuel
License
As per
the agreement signed with GGR, the operator has granted the existing partners of
the Myra and Sarah licenses an option to purchase from the operator up to 20% in
accordance with their pro rata share, an additional offshore license known as
“Samuel” located within the territorial waters of the State of
Israel.
The
MNI has now awarded the Samuel license to GGR and their partners. IPC is now
entitled to acquire 2.72% of the Samuel license, of which Bontan’s share would
be 2.09%.
Kam Shah,
CEO comments, “With the confirmation of the registration of our rights on the
two licenses and appointment of an operator, we expect the work on the
development of the two licenses to accelerate. The confirmation by the MNI also
puts an end to all the controversies surrounding the rights over these
licenses."
About
The Offshore Israel Project
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 8.4 TCF Tamar 1, Tamar 2, and the .8 TCF Dalit natural gas discoveries by
Noble Energy Inc.
The right
to the licenses is held by a group comprising of Bontan’s Israel Petroleum
Company, Limited (“IPC”), Tel Aviv-based Emanuelle Energy Ltd. (“Emanuelle”) and
IDB-DT Energy (2010) Ltd. (“IDB-DT”), Blue Water Oil & Gas exploration Ltd
and GeoGlobal Resources (India) Inc. under an Agreement entered into on March
24, 2010 and subsequent addendum and an operators
agreement.
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:
|
Bontan’s 10.45% Net Value, US Dollars
|
||
|
Before
Risk
Combined
Prospects
|
After
Risk
Combined
Prospects
|
|
|
Undiscounted
|
$2.6
billion
|
$767
million
|
|
Discounted
@ 5%/year
|
$1.33
billion
|
$390
million
|
|
Discounted
@ 10%/year
|
$727
million
|
$209
million
|
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, refer to our website www.bontanoilandgas.com
and contact John Robinson at (416) 860-0211.
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 reliance on Emanuelle, IDB-DT and IPC, as well as
third-party consultants and contractors, to develop the Project; the
ability of Bontan and IPCCayman 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.
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