News listings
Equatorial Guinea Licence Round

energy-pedia licensing

Israel flagIsrael

Middle East / Africa >>> Israel

Israel: Bontan picks up 3 offshore oil and gas concessions

24 Nov 2009

Photo - see caption

Bontan Corp has announced that it has acquired, through its wholly owned subsidiary, an indirect 71.63% working interest in two drilling licences and one exploration permit in the Levantine Basin, 40 kms off the West coast of Israel in the eastern Mediterranean. Petroleum Licence 347 (Mira) and Petroleum Licence 348 (Sarah) cover approx. 198,000 acres (803 sq kms), and Petroleum Preliminary Permit 199 (Benjamin), covers approx. 461,000 acres (1,865 sq kms).

Photo - see caption
Structural Elements E. Mediterranean - showing location of Levantine Basin (Breman 2006)

Bontan's interest is held by its 75% equity interest in Israel Petroleum Company (IPC). IPC has acquired an undivided 95.5% working interest in the Project Assets from a private company, subject to approval of the transfer by the Israeli Ministry of Infrastructure.

The consideration paid by Bontan in connection with the acquisition of its interest in IPC was a cash consideration, 8.6 million common shares and 22.8 million common share warrants. The warrants have a term of 5 years and are exercisable at US$4 per share. The private company retained a 3% overriding royalty in the Project Assets. Bontan arranged for one-year loans to cover part of the acquisition cost. The loans accrue interest at 10%, are payable without penalty at any time, and are secured by a portion of the shares in IPC. A total of 1.15 million common share warrants have been issued to the lenders as compensation for the loans. The warrants have a five year term and are exercisable at US $0.35 per share.

The Project Assets are located in the Levantine Basin near the recent Tamar-1, Tamar-2, and the Dalit natural gas discoveries. The three wells were drilled by Noble Energy, which partnered with Delek Energy Systems, Isramco and Avner Oil and Gas. The wells have a reported 6.8 TCF (1.02 BBOE) of estimated proved, probable and possible reserves in the licensed area, making this the second largest gas discovery in the world since January 2008. South of the Project Assets is the existing Mari-B field, also drilled by Noble, Delek, and Avner, which contains a reported 1 TCF (150 MBOE) of estimated proved, probable and possible reserves.

The required 3D seismic for the licence area is in the process of being completed. The required 2D seismic work for the permit has been completed and application will be made to convert the permit to a licence.

Photo - see caption
Location of the Mira & Sarah offshore licences

International Three Crown Petroleum LLC (ITC), managed by Howard Cooper, owns a 22.5% equity interest in IPC and will operate the Project Assets. Mr. Cooper has been involved in the international oil and gas business for thirty years, having successfully developed projects in the United States, Russia, and Kazakhstan. Mr. Cooper commented, 'Obtaining two licenses and an adjoining permit adjacent to Noble Energy's estimated 6.8 TCF recent discoveries and north of the existing Mari-B field is very exciting. Analysts have valued Noble's 36% interest in their new discoveries at $1.5 billion. We are very excited about the potential upside to this project.'

Kam Shah, CEO of Bontan, commented, 'The acquisitions of the Mira Licence, Sarah Licence and the Benjamin Permit, covering over 2,660 sq kms, provides Bontan with the long awaited opportunity to participate in the development of Israel's offshore oil and gas resources. With the 6.8 TCF discoveries north of the Project Assets, the possibility of significant hydrocarbon deposits on our project area exists.'

For a review of the hydrocarbon prospectivity of the Levantine Basin, see Hydrocarbon plays and prospectivity of the Levantine Basin, offshore Lebanon and Syria from modern seismic data: Glyn Roberts and David Peace, an interesting paper co-authored by seismic guru Glyn Roberts.


PetroMed had been looking for partners for the Mira and Sarah offshore licences since early 2008 (See energy-pedia opportunities) and was offering up to 70% equity. The permits are located in water depths of around 1000 – 1500 metres and are undrilled. PetroMed has previously confirmed the presence of two structures which are aerially large, being about 7-8 kms by 14-15 kms. The structural closures in each are also very thick meaning that there is potential for multiple reservoirs. Reserve estimates are in the billion barrel plus range for each structure. Nearby discoveries by BG Group along with the more recent Tamar discoveries drilled by Noble (see above) have highlighted the exploration potential of the permits.  


Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Subscriber Only Deals

Current deals: 1688
Completed deals: 5158

Company Profiles

Current Company Profiles: 2634

Corporate Activity

Current Corporate Activity articles: 3255

Companies Looking

Current number of articles: 425

Company Sales

Current Company Sales articles:1348


Current Geostudies articles: 633

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

SLR Consulting logo
RSK Logo 149
Lynx Information Systems
EP Consult Energies
Union Jack Oil 149
KL Publishing
Rose & Assocs 149
Government of South Australia
count geophysics
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675