Israel Petroleum Company Seeks Partners for Participation in Offshore Israel Oil and Gas Licenses

DENVER, August 2, 2010 - Israel Petroleum Company, Limited ("IPC") is pleased to announce that the
transfer and registration of its ownership rights in the Sara and Myra
offshore Israel licenses has been granted by the Petroleum Commissioner of
the Israel Ministry of National Infrastructure ("MNI"). Per the updated
"Ownership in Petroleum Rights", published by the MNI on June 30, 2010, all
rights have been registered to IPC and its partners on the Sara and Myra
licenses. IPC holds its interest in the Sara and Myra licenses through its
wholly owned subsidiary, I.P.C. Oil and Gas (Israel) Ltd. Partnership.

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Seismic data for Sara and Mira has been shot, acquired, and processed.
The 3D seismic data in respect of the Sara and Myra licenses has been
submitted to the MNI. The first phase of the interpretation of the results of
the 3D seismic data is expected to be completed and a report submitted to the
MNI the first week of August, 2010, as per the agreed work program.

Determination of a drilling prospect on each license and engineering for
those prospects is expected by December 31, 2010. A contract with a drilling
contractor is expected March 31, 2011 followed by an expected spud date of Q3
2011.

IPC is currently seeking interested parties to participate in the
development of its 13.609% interest in the Sara and Myra licenses either
through a farmout, option, partial sale of interest, assignment, or debt
financing.

347/Myra and 348/Sara Licenses

Ownership of the licenses is held by a group comprised of I.P.C. Oil and
Gas (Israel) Ltd. Partnership (13.609%), Emanuelle Energy Ltd. (24.161%),
Emanuelle Energy Oil and Gas Limited Partnership (19.161%), Modiin Energy
Limited Partnership (19.282%), and four other entities.

As previously announced by the working interest owners, a Prospective
Resource Evaluation Report was prepared by Chapman Petroleum Engineering Ltd,
an independent Calgary based consulting firm (www.chapeng.ab.ca/).
Assuming a successful ultimate recovery of resources and using a discount
rate of 10%, Chapman estimates the unrisked net present value of IPC's
13.609% interest in the Sara and Myra licenses at between US$677 million and
US$1.432 billion.

About The Offshore Israel Project

The Sara and Myra licenses cover approximately 310 square miles and are
located 25 miles offshore Israel in the Levantine Basin near the recent 8.4
TCF Tamar 1, Tamar 2, and the Dalit natural gas discoveries by Noble Energy
Inc.

In an article published in April 2010, the U.S. Geological Survey
"estimated a mean of 1.7 billion barrels of recoverable oil and a mean of 122
trillion cubic feet of recoverable gas in the Levant Basin Province."

About Israel Petroleum Company

Israel Petroleum Company, Ltd. (IPC) is owned by Bontan Oil and Gas
Corporation (Bontan), a subsidiary of the publicly traded Canadian company
Bontan Corporation Inc., and the privately held Colorado based International
Three Crown Petroleum, LLC. Bontan holds 76.79% interest and International
Three Crown Petroleum, LLC holds the remaining 23.21%. IPC is managed and
operated by H. Howard Cooper of International Three Crown Petroleum, LLC.

For more information, please contact Gillian Morris at +1-970-846-1953 or
gmorris@threecrownpetroleum.com. Information is also available at
www.israelpetroleumcompany.com.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning
of the U.S. federal and Canadian securities laws. Any such statements reflect
IPC's current views and assumptions about future events and financial
performance. IPC cannot assure that future events or performance will occur.
Important risks and factors that could cause actual results or events to
differ materially from those indicated in our forward-looking statements
include, but are not limited to, the following: the effect of economic and
political developments in Israel and in the Mideast; the reliance on the
working interest owners, as well as third-party consultants and contractors,
to develop the Project; the ability of IPC to raise sufficient capital to
demonstrate to the MNI adequate financial capability and to satisfy its
obligations for the costs of drilling and development; the risk that the
final interpretation of the seismic and other data may show or suggest, or
that drilling may ultimately demonstrate, that either or both of the licenses
contain no, or noncommercial amounts of, hydrocarbons; the volatility in
commodity prices for crude oil and natural gas; the presence or
recoverability of estimated reserves; the potential unreliability or other
effects of geological and geophysical analysis and interpretation;
exploration and development, drilling and operating risks; competition for
development of the Project; environmental risks; government regulation or
other action, including the potential change in tax and royalty provisions
under active consideration by the Israeli government; potential disruption
from terrorist activities or warfare in the region or at the Project site;
general economic conditions; limited market available in Israel for oil and
gas that may be found in commercial quantities; and other risks associated
with the exploration and development of international offshore projects in
several thousand feet of water; and other risks identified by the press
releases and securities filings of the other working interest owners in
Israel, Canada, and other jurisdictions in which such releases and filings
are made. IPC assumes no obligation and expressly disclaims any duty to
update the information in this News Release.

Gillian Morris, Israel Petroleum Company, +1-970-846-1953, gmorris at threecrownpetroleum.com