The Petroleum Commissioner of the Israel Ministry of National Infrastructure ("MNI") confirmed on June 16, 2010 that Bontan's 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). As previously announced. Bontan's interest is held through its 76.79% equity interest in Israel Petroleum, 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.
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 commented, "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."
About The Offshore Israel Project
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 8.4 TCF Tamar 1, Tamar 2, and the .8 TCF Dalit natural gas discoveries by Noble Energy Inc.
The right to the licenses is held by a group comprising of Bontan's Israel Petroleum, Emanuelle and IDB-DT, Blue Water Oil & Gas and GeoGlobal Resources under an Agreement entered into on March 24, 2010 and subsequent addendum and an operators agreement.
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