IPC Iplayco Corporation Ltd

Bontan Corporation Inc. (OTCBB:BNTNF) is pleased to announce that it and its
indirect majority-owned subsidiary, Israel Petroleum Company, Limited ("IPC"),
entered into an agreement on March 24, 2010 (the "Agreement") with Tel
Aviv-based Emanuelle Energy Ltd. ("Emanuelle") and IDB-DT Energy (2010) Ltd.
("IDB-DT") for approximately $16.1 million of new financing to assist in further
developing the natural gas exploration project offshore from Tel Aviv, Israel
(the "Project").  


The Agreement also settles the litigations amongst IPC, PetroMed Corporation
("PetroMed"), Bontan and their respective affiliates relating to ownership of
the 95.5% interest ("PetroMed's Share") in the "Sarah" and "Myra" drilling
licenses (the "Licenses"), and the now expired "Benjamin" drilling permit (the
"Permit"), acquired by IPC from PetroMed in November 2009.


PetroMed's Share in the Licenses is currently listed in PetroMed's name on the
registry (the "Registry") maintained by the Israel Ministry of National
Infrastructures ("MNI"). 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 and the
Permit. 


Bontan's working interest in PetroMed's Share of the Licenses and Permit is 11%
held through its holding of 76.8 % equity interest in IPC. 


As part of their working interest acquisition, Emanuelle and IDB-DT agreed to
contribute approximately US$ 16.1 million of which approximately US$ 10.5
million will be paid to WesternGeco, a geophysical services firm and a
subsidiary of Schlumberger Limited, for joint title with IPC for the delivery of
2-dimentional data, and for processing an estimated 11 weeks of 3-dimensional
geophysical mapping data on the License sites; these were shot and completed in
November 2009 (the "Data"). The MNI required the Data to be submitted by April
1, 2010 as a condition of the Licenses and will need to agree to an extension of
the due dates under the Licenses for the submittal of the Data in order for the
Licenses to be maintained. The balance of approximately US$ 5.6 million will be
used for operational needs and for the benefit of PetroMed's creditor's through
a Trust. 


The terms of the agreement also include a commitment by all parties to seek
reinstatement of the Benjamin permit and the conversion of the permit to one or
more drilling licenses for the joint benefit of the parties.


PetroMed agreed to the cancellation of the 8.6 million shares of Bontan common
stock, and the 22.8 million Bontan common stock warrants, issued to it as part
of the consideration for the transfer of PetroMed's Share in the Licenses and
Permit to IPC in November 2009. PetroMed will retain the $1 million cash payment
made by IPC.


Kam Shah, CEO of Bontan, commented, "This is a very significant milestone for
Bontan, partnering with strong local Israeli partners like Mr. Nimrodi and Mr.
Sultan will allow this world class gas exploration project to advance to the
next stage. This is particularly timely in light of the new March 2010 MNI
regulations requiring applicants for offshore projects to demonstrate the
financial capability to cover the full estimated cost of their initial project
work program and half the estimated drilling cost per offshore well, as well as
experience in operating large oil and gas exploration projects. We also believe
that settlement of the PetroMed litigations will enhance our joint request to
the MNI for official re-registration of PetroMed's Share in the Licenses in
IPC's name and that of our other partners. After the 3-dimentional data is
processed and analysed, we expect to be in a position to begin the preparation
leading up to the drilling of wells with an international operator. We look
forward to a very successful partnership with our new investors."


About the Project Area

The Licenses cover approximately 310 square miles and are located in the
Levantine Basin near the recent Tamar 1, Tamar 2, and the Dalit natural gas
discoveries. The 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). The wells have a reported 6.8 TCF (1.02 BBOE) of estimated
proved, probable and possible reserves in their licensed area, making these
wells the second largest gas discovery in the world since January 2008. South of
the Licenses' area is the existing Mari-B field, also drilled by Noble, Delek
and Avner, which contains a reported 1 TCF (150 MBOE) of estimated proved,
probable and possible reserves.


Chapman Petroleum Engineering Ltd, an independent Calgary based consulting firm
(http://www.chapeng.ab.ca/) prepared a Prospective Resource Evaluation Report ,
effective January 1, 2010 in accordance with National Instrument 51-101, Section
5.9 standards for review and assessment of prospective resources , which
provided a low estimate of 5.71 TCF and high of 7.34 TCF of gross prospective
resources on the Sarah /Myra prospects.


About Emanuelle Energy Ltd.

Ofer Nimrodi controls Emanuelle and is the chairman of managing director of
publicly traded Israel Land Development Corporation (TASE: ILDC).


About IDB-DT Energy (2010) Ltd

IDB-DT is a joint venture of IDB Development Corporation Ltd. (affiliated with
Avraham Livnat Company) and Du-Tzah Ltd. (affiliated with Manor Holdings and
Yitzak "Zachi" Sultan). Avraham Livnat Company and Manor Holdings, purchased
47.5% of all Noya Oil and Gas shares as well as 1/2 of all participation units
held by Noya including a 70% stake in the Gabriella License, a 15% interest in
the Zurim License, and a 7.5% interest in the Carveout Halamish License. 


IDB was recently ranked by leading international institutions as Israel's
largest top tier leading diversified business group in Israel with assets
totalling over US$30 billion. IDB has subsidiaries in over 100 countries with
over 40,000 employees. Yitzak "Zachi" Sultan, the owner of Noya Oil and Gas, is
the chairman of Clal Finance Underwriting (CFU), the leading underwriter and
investment banker in Israel with 50% of the total market. In 2009, CFU raised
over 30 billion Shekels (US $8.4 billion).


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.


Bontan will have 60,284,076 common shares issued and outstanding after
cancellation of Petromed shares as above.


For further information, 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, include: 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 effect
of the continuing litigation with East Mediterranean Exploration Co. on our
rights to the Licenses and the now expired Permit; 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.

Iplayco (TSXV:IPC)
Historical Stock Chart
From Jul 2024 to Aug 2024

Iplayco (TSXV:IPC)
Historical Stock Chart
From Aug 2023 to Aug 2024