Press Release Source: Bontan Corporation Inc. On Thursday June 17, 2010, 11:44 am
TORONTO, June 17 /PRNewswire-FirstCall/ - Bontan Corporation Inc. (OTCBB:BNTNF.ob - News) ("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.a - News). 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."