Bontan aims to drill Israel prospects

Bontan Corp. has closed a private placement financing, raising funds for work in two drilling licenses offshore Israel – Sarah and Myra – where it has an 11% working interest.

Offshore staff

TORONTO, Ontario -- Bontan Corp. has closed a private placement financing, raising funds for work in two drilling licenses offshore Israel – Sarah and Myra – where it has an 11% working interest. The company holds these stakes via its 76.8% owned subsidiary Israel Petroleum Co. (IPC).

According to Bontan, all seismic data over the two licenses have now been purchased from WesternGeco International and processing is in progress.

Sarah and Myra cover around 310 sq mi (119 sq mi) in the Levantine basin, close to Noble Energy’s 6.3 tcf Tamar 1, Tamar 2, and Dalit natural gas discoveries.

Partners in the licenses are IPC, Tel Aviv-based Emanuelle Energy, and IDB-DT Energy.

Chapman Petroleum Engineering, an independent consulting firm in Calgary, recently prepared a Prospective Resource Evaluation Report for the Sarah/Myra prospects. This suggested a low estimate of 5.71 tcf and a high of 7.34 tcf.

Kam Shah, CEO of Bontan, said: “We have met all of our financial obligations in relation to the offshore Israeli project and look forward to further developmental activities in both the Sarah and Myra licenses.

“The recent reports from the US Geological Survey indicating that there are some 1.7 Bbbl of recoverable oil and 122 tcf of gas in the 83,000-sq km [32,046-sq mi] Levant basin province augurs well for our project.

“In addition the fact that the offshore area has also recently attracted the attention of various energy giants, including Gazprom, bodes extremely well for our project. Identifying an international driller and operator will enable us and our joint venture partners to proceed with the plans to drill in both the licenses.”

05/12/2010

More in Drilling & Completion