BONTAN CORP INC BNTNF

Well Already Down 740 Feet!

[ajootian]

BONTAN CORPORATION INC. ANNOUNCES COMMENCEMENT OF DRILLING ON ITS LOUISIANA GAS PROJECT TORONTO, ON – August 23, 2005 , Bontan Oil & Gas Corporation, a wholly owned subsidiary of Bontan Corporation Inc. (OTCBB: BNTNF) (“Bontan”), is pleased to announce that drilling began on its initial test well, Placide Richard No. 1 on August 21, 2005 and has reached a depth of 740’ to date. The initial well should reach the proposed total depth of 15,300’ within 60 days. The zones to be tested by the initial well have possible reserves of up to 50 billion cubic feet equivalent of gas (BCFE). Brammer Engineering, Inc. of Shreveport, La. is the engineering manager of the gas exploration project in eastern Calcasieu Parish, Louisiana and has signed a turnkey drilling contract with Grey Wolf, Inc (AMEX: GW) of Houston, TX for the initial test well. Bontan hopes to release weekly reports during the drilling period, with other announcements as operational activities dictate and upon achieving target depth.