TORONTO, July 23, 2004 (PRIMEZONE) -- Further to the press release on May 26, 2004, Bontan Corporation Inc. (OTCBB:BNTNF), through its wholly owned subsidiary Bontan Oil & Gas Corporation, is pleased to announce it has converted its advances to a non-affiliated corporation of about US$1.9 million for the purpose of acquiring an indirect participation interest (IPI) in phase one of an oil exploration program in Papua New Guinea as follows:
a. Bontan will receive 15,262 free-trading common shares of InterOil
Corporation, a public company listed on the Toronto Stock Exchange,
in settlement of its advances of US$270,900. The current market
price of the shares is CDN$24.75 per share.
b. Bontan will receive approximately 0.75% IPI in settlement of the
balance of its advances of about US$1.6 million. Bontan has the right
to convert its interest into InterOil shares at US$17.75 per share.
The IPI agreement is with PNG Drilling Ventures Limited, which is a contract party to InterOil Corporation. The IPI agreement provides for the participation in a multi-well drilling program on separate and independent structures located in over 8 million exploration acres in three principle prospecting licenses in Papua New Guinea. All structures are oil-prone and each with a pre-drill estimated undiscovered resource potential of over 300 million bbl. To date, two structures, Moose and Sterling, have been subject to exploratory drilling. The Moose structure has confirmed oil shows in the secondary target (limestones). More information about the exploration program can be found at InterOil Corporation's web site www.interoil.com.
Mr. Kam Shah, CEO commented, "We are pleased to participate in a major drilling program managed by InterOil Corporation, a growing international integrated energy company. Papua New Guinea has historically been an oil producing country. InterOil management is highly competent and very experienced in international oil exploration and we look forward to a successful oil exploration program in Papua New Guinea."
About Bontan Corporation Inc.:
Bontan Corporation Inc. (OTCBB:BNTNF) is an international diversified natural resource company that operates and invests in major exploration prospects. Bontan is currently active in oil exploration in Papua New Guinea through its wholly-owned subsidiary Bontan Oil & Gas Corporation and in diamond exploration in Brazil through its wholly-owned subsidiary, Bontan Diamond Corporation.
Through its wholly owned subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offer exciting and attractive propositions. The company will seek to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.
No regulatory authority has approved nor disapproved the content of this release.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plans", "confident that", "believe", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.
For further information, please contact Kam Shah, CEO and CFO, at 416-860-0175. Visit www.bontancorporation.com for more information.
For Media Relations, contact Rob Kennedy at Current Capital Corp. at 416-860-0211 or visit www.currentcapital.com.