Bontan has closed its previously announced non brokered private placement financing, pursuant to which it has issued 37,750,000 Units at a price of US $0.20 per Unit to raise aggregate gross proceeds of US $7,550,000. Each Unit consists of one common share of the Company and one five-year term purchase warrant. Each warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.35 per share. There is a call provision should the closing price of the Company’s common shares exceed US $1.00 for 20 consecutive business days. All securities issued in the financing are subject to a statutory hold period.
Certain proceeds from the offering have been used with respect to the Company’s 11% net working interest in the two drilling licenses in offshore Israel: Sarah and Myra. The Company’s ownership of theses licenses is held through its 76.8% owned subsidiary: Israel Petroleum.
The Company reported that all seismic data relating to the two licenses have now been fully acquired from Western Geco International Ltd, a Schlumberger group company, who were paid the balance of their fees of US$ 10.5 million. All of the seismic data is now being processed.
Bontan also reported that it is preparing an application to list on the Canadian National Stock Exchange. The CNSX is an innovative new stock exchange for trading the securities of public companies. The Company must meet all requirements of the Exchange prior to any approval.
Kam Shah, CEO of Bontan, commented, “We are very pleased with the progress our Company has made over the last seven months. 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. We have received tremendous support from our existing shareholders as well as from new sophisticated investors who participated in our recent private placement. The recent reports from the US Geological Survey indicating that there are some 1.7 Billion barrels of recoverable oil and 122 Trillion cubic feet of gas in the 83000 square kilometer 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. It should be a very exciting year ahead for our company.
About the Project Area
The Offshore Israel Project comprises two Licenses – Sarah and Myra – covering approximately 310 square miles and is located in the Levantine Basin near the recent 6.3 TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy Inc.
Bontan Corporation partners with major Israeli investors to raise $16 million of new capital for Israel offshore natural gas exploration project.
TORONTO, March 26 /PRNewswire-FirstCall/ – 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”).
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.
TORONTO, Nov. 24 (UPI) — Canada-based Bontan Corp. Inc. announced the indirect acquisition of exploration and drilling licenses in the Levantine Basin off the coast of Israel.
Bontan said the two drilling licenses and one exploration permit cover a total area of more than 1,000 square miles in the Israeli waters of the Mediterranean Sea.
The Israeli Petroleum Co. holds the 75 percent equity interest in the project area for Bontan.
Wells associated with the Levantine Basin hold an estimated 6.8 trillion cubic feet of probably gas reserves, which Bontan said is the second largest discovery in the world made in nearly two years.
“With the 6.8 trillion cubic feet discoveries north of the project assets, the possibility of significant hydrocarbon deposits on our project area exists,” said Kam Shah, chief executive officer of Bontan
The company said it was in the process of obtaining the necessary permits for further analysis of the Levantine Basin.