Petroleum License 347 (Mira) and Petroleum License 348 (Sarah) cover approximately 198,000 acres (803 sq kilometers), and Petroleum Preliminary Permit 199 (Benjamin), covers approximately 461,000 acres (1,865 sq kilometers).
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, 8.6m common shares and 22.8m common share warrants. The warrants have a term of five years and are exercisable at $4 per share. The private company retained a 3% overriding royalty in the project assets.
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, who partnered with Delek Energy Systems, Isramco and Avner Oil and Gas.
