Bontan Resumes Drilling on its Louisiana Gas Project

Bontan Oil and Gas reports that Hurricane Rita caused no structural damage to either the rig or drilling site of the initial well located in Calcasieu Parish, LA. Drilling personnel who were evacuated for safety reasons are now back on site and drilling operations have now resumed as planned.

The initial well depth is currently at around 11,900' and should reach the proposed total depth of 15,300' within 20-25 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 is managing drilling operations conducted by Grey Wolf, Inc. (AMEX: GW) of Houston, TX for the initial test well.

Bontan will continue to release weekly reports during the drilling period, with other announcements as operational activities dictate and upon achieving target depth.