Source: Bontan Corp.
Bontan Corporation, through its subsidiary Israel Petroleum Company, has entered into an agreement with Israeli based Ofer Investments. Ofer will invest up to US $28 million and acquire a 50% equity in IPC Oil and Gas (Israel) Limited Partnership to fund IPC Israel's share of the costs of the initial two test wells and related exploration well costs relating to Sarah and Myra licenses.
Mr. Kam Shah, CEO of Bontan commented "We are very pleased and excited to have the Ofer family as partners in our offshore Israel oil and gas exploration project. Bontan is now in a good position to capitalize on its investment to date and looks forward to the eventual drilling of the initial exploration wells on blocks covered under the Sarah and Myra licenses."
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 and Dalit natural gas discoveries by Noble Energy Inc.
The right to licences is held by a group comprising IPC Oil and Gas Ltd Partnership, Tel Aviv-based Emanuelle Energy Ltd, Modin Energy Partnership Limited, Emanuelle Energy Oil & Gas Limited Partnership and other entities including the operator, GeoGlobal Resources (India) Inc.
Bontan's indirect working interest in these licenses after the agreement with Ofer is now 5.23%. Bontan intends to hold its indirect working interest.