OUTSTANDING NEWSBontan Corporation Inc. pre-pays the entire exploration cost on gas exploration project in Louisiana
TORONTO, July 12, 2005 /PRNewswire-FirstCall via COMTEX/ --
Bontan Oil & Gas Corporation, a wholly owned subsidiary of Bontan Corporation Inc. (OTCBB: BNTNF) ("Bontan"), is pleased to announce that it has paid US$3,052,700, being its share of the estimated total drilling and casing costs of US$6,230,000 for the initial well in a gas exploration project in Eastern Calcasieu Parish, Louisiana (The Project). The Project is comprised of Wadi Petroleum of Houston, TX, two long time Pittsburgh, Pa. operators, and companies controlled by several former senior major oil company executives. All participants in the Project have also agreed to prepay their share of the costs.
The request for the prepayment of the entire exploration costs was made by the Operator, Keystone Oil Company of Dallas, TX and the project manager, Brammer Engineering of Shreveport, La. to secure a drilling rig promptly and sign up a turnkey drilling contract with a major American drilling company without further increase in costs. The funds sent by the Company will be held in an escrow account with AmSouth Bank, Birmingham, AL, and will be released by the project manager against the actual work from time to time.
Site preparation work has already commenced and a spud date will be announced shortly once availability of a drilling rig is determined. The initial well, Placide Richard et. al. No. 1, scheduled for 15,300 feet total depth, should reach target depth in about 60 days after spud. The zones to be tested by the initial well have possible reserves of up to 50 BCFE.
Mr. Kam Shah, CEO, commented, "We now expect drilling work on the Project to start very soon. The operators have an excellent history of success and much experience in Louisiana. The Project is fully funded by us without incurring any debt or further diluting our shareholder equity."