IPC Oil & Gas Myra Drilling Update

Tel Aviv, Israel – 9/6/12 – IPC Oil and Gas Holdings, Ltd. (TASE: IPC) announced today that following the immediate report of June 23, 2012 [report on the commencement of the drill], to the immediate report of August 4, 2012 [report on a malfunction in the drill] and to the immediate report of August 11, 2012 [report on update following publications], and in accordance with information provided to the partners of the license by the license operator (herein The Operator), the drill has reached its final vertical depth (about 5,200 meters). During the drilling the operator has performed logging while drilling where no meaningful quantities of petroleum were found. In the information relayed by the operator to the drill license partners, high quality of sand was found (Miocene-Oligocene) sand but these were saturated with water in the drilling point.

Following the recommendation made by the Operator, the partners in the license have decided to perform wire line logging (herein Logs) in the drill, with the total cost of 1.7 m USD. These logs are expected to be ending next week. The purpose of these logs is to provide a final answer whether there are hydrocarbons present in the drill (in light of the fact that no meaningful petroleum quantities were found, the probability here is low), and will provide an important geological information which will assist the license partners in analyzing the geological information from this license and from license no. 348 / Sara (Sara license and together with The License – herein The Licenses) and will assist the partners during the execution of the Sara 1 drill under the Sara license and in other drills as much as these will be performed in the licenses area.

Immediately, upon completion of the logs performance, as specified here, expected for next week, the drilling rig will be moved to the Sara drill and will commence with the execution of the Sara drill in accordance with the work plan.

A warning in regards to a future anticipating information – the estimates in regards to the logs, their costs, and their date of completion, as well as the information pertaining the commencement of the Sara 1 drill is regarded as future anticipating information as it is defined in section 32 of the securities law and are based on estimates given by the operator of the drill and which there is no guarantees as to their coming to actuality, in full or in part in the estimation proclaimed manner and these might come to actuality in a whole different manner. These estimates are expected to be updated as the gathered information is accumulated and a s a result of a variety of factors related to the drill or other factors related to projects of search and discovery of naturally occurring oil and gas drills.

The licenses partners are as follows :

Modiin Energy limited partnership – 29.212%

IDB development company 5.605%3

Emauel Energy 22.413%

Emauel Energy – gas and oil search – limited partnership – 19.161%

Hachsharst Hayeshuv Company in Israel Ltd. 5%

IPC oil and gas Israel) limited partnership – 13.609%

The operator – 5%

FORWARD-LOOKING STATEMENTS

This press release does not constitute an offer for the acquisition of IPC Oil & Gas Holdings bonds (hereinafter: “The Company”), or a bid to receive such offers, and is intended for informational purposes only. This press release was produced for summary and convenience, and perusing it does not constitute a replacement for the examination of the reports published by the company. In this press release, the company included forward-looking information as defined in the bonds law, 1968. Such information includes, but is not limited to, projections, goals, estimations and valuations, and any other information concerning future events or matters, the ultimate realization of which is not certain and is not under the control of the company. This forward-looking information is formed on the basis of the estimations of the general partner, which are based partially on information known to the general partner as of the editing of this press release. These include estimations regarding the company’s field of activity, in addition to data and publications issued by various authorities and organizations, not examined independently by the general partner. The realization of this forward-looking information (or lack thereof) will be determined, inter alia, by risk factors associated with the company’s activity, in addition to developments in the general environment, and external factors which affect the company and its field of activity. These factors are not foreseeable and are not in the control of the general partner. Moreover, any schedules (or the cost thereof) for the implementation of different projects regarding the oil holdings in which the company holds participation rights, and are included in this press release, are estimated and include forward-looking information which is not certain and is based on partial information known by the general partner as of this press release’s publication, estimations of the general partner based on said information, the nature of which may be subject to change based on the progress of said projects, the actual date of work, the findings discovered as a result of them, in addition to limitations and/or external influences such as a change in the conditions of the oil holdings, delay of authorizations and permits required for the various projects, dependence on the contractors and so forth. Therefore, the activities as implemented in actuality and their dates may be substantially dissimilar to the implied or estimated objectives. The general partner and/or the company are not obligated to update or change any projection and/or estimation as described above, such that they reflect events or circumstances which would eventuate after the publication of this press release.

IPC Oil & Gas Holdings: Drilling in the Myra license is expected to begin in the following days – the drilling rig has reached its destination

The drilling rig Noble Homer Ferrington, which will be used for the drilling, has reached its destination and is now performing the preparations required for the drilling spud-in.

IPC Oil & Gas Holdings, Ltd., which holds, through the partnership IPC Israel (50%) and with Ofer Investment Group, 13.609% of the drilling licenses “Sara” and “Myra”, has announced today that the license operator, GeoGlobal Resources (India) Inc., informed the license partners that the drilling rig Noble Homer Ferrington, with which the drilling will be performed, has reached its destination and is now performing the preparations required for the drilling spud-in, which is expected to begin within the next few days.

The drilling is expected to last for approximately 70 days.

Muli Ravina, CEO of IPC, said: “This is the moment we’ve all been anticipating for a very long time. After a long wait, caused by the delays in delivering the rig due to prolonged works on the Leviathan license, we are happy to progress to the practical level of this project. The preparations for the drilling were recently completed, including the organization in the port and purchase of the equipment, materials and services required in order to execute the drilling procedures”.

Howard Cooper, President and Chairman of IPC, said: “The company holds, through the IPC Israel partnership (50%) and with the Ofer Investment Group, 13.609% of the drilling licenses “Sara” and “Myra”. As of the end of 2009, at which time we were the first company to purchase the rights given with these licenses, we have been promoting the project that is finally being operatively executed today. I wish to add that we have taken care of obtaining the required funding planned for both the “Myra’ and “Sara” drilling in a preliminary stage, as part of our partnership agreement with Ofer Investment Group, in order to prepare in advance for the expenses involved in performing two deep-water drillings. As a company well experienced in development, operation, funding, management and production of gas and oil projects, with experience acquired from works and projects around the globe, we believe in this project’s potential and expect following progress of the drilling”.

About IPC Oil & Gas Holdings, Ltd.:

• IPC Oil & gas Holdings is a public company traded in Tel Aviv trade market under the symbol IPC and handles searches for oil and natural gas fields.
• IPC owns approximately 6.8% of the rights in the licenses “Myra” and “Sara” (deep water drilling licenses) through the partnership IPC Israel (50%), which holds 13.069% of the Sara and Myra licenses together with the Ofer Investments Group.
• Of the current partners in the drilling, IPC was first to purchase the right for Myra and Sara on October 2009 and initiated the D3 seismic survey.
• The company management staff includes Mr. Igor Effimoff, the company’s geologist, who brings with him 40 years of international experience in the field of oil and natural gas searches in a variety of geographic environments and in deep water drillings.

Warning due to forward-looking information: the drilling duration is based on evaluations and estimations received from the operator, which constitute as forward-looking information. These evaluations and estimations are considered as professional evaluations and estimations which have no guarantee and may be updated along with the progress of the drilling process and/or due to a wide range of factors related to oil and natural gas search and production projects, including results derived from operative conditions and/or markets conditions and/or regulatory conditions.

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IPC Oil and Gas holdings: successfully completed capital raising in shares and options with an over-demand of 3.6 times and at a price 32% higher than the minimum price

Total raising is expected at over 36 Million shekels (assuming full exercise of all options)

IPC Oil and Gas Holdings announced today that its capital offering to the public, included: 22 Million shares, 11 Million options (series 3) to be exercised in April 2012, and 22 Million options (series 4) to be exercised on December 2015, shares were offered in 110,000 units and the price for the unit was determined by a bid. Applications for purchases totaled 392,375 units, 3.6 times the amount offered.

Due to the high demand received in the bid, the Company has exercised its right to issue additional units. The price that was set in the bid for each unit is: 1.24 Shekels, 32% higher than the minimum price.

The immediate gross amount that was received by the Company in its capital offering totals approximately 14 Million Shekels. Assuming exercise of options series 3, the Company will raise approximately 20.6 Million Shekels, and assuming full exercise of all the options the Company will raise approximately 36 Million Shekels.

Muli Ravina, IPC’s CEO, commented: “we are pleased and proud with the results of the capital raising and the high demand for our shares. We thank the many investors that took part in the raising and we see this as a testament to their belief in our Company’s line of business and in its management team. With the completion of this successful capital raising we conclude a long process that started over a year ago and where the Company was faced with quite a few challenges, but successfully overcame them all. I want to thank the incredible team that accompanied us all the way”.

The Company thanks Meitar Likiiornik, Geva ,Leshem and Brandwin  Law office, the Accountants Nissim Yehushua and Haim Klugman from BDO, the Accountants Itay Weinstein and Nir Ban-Yossef from Shimoni office, and the underwriters that took part in the offering.

About IPC Oil and Gas Holdings

IPC Oil and Gas Holdings is a public Company, traded on the TASE, under the symbol: APSG. The Company holds 6.8% of the rights in the “Myra” and “Sara” Licenses (licenses in deep water), through IPC Israel (50%) that Holds 13.609% in the Myra ad Sara licenses along with the Offer investment group. IPC was the first to purchase the rights in the “Myra” and “Sara” licenses in October 2009 among the current partners and initiated the 3D survey. The Company’s management team has vast knowledge and many years of international business experience, including in: entrepreneuring, operations, finance, management and production of oil and gas projects, including drillings in deep water.

IPC TASE Announcement: Compromise Agreement of the Company’s Control Holder with Bontan

December 18, 2011 – The company hereby announces that Israel Petroleum Company Limited (“IPC Cayman”), its control holder, notified it on December 16, 2011 that it signed, together with Mr. Howard Cooper and corporations he controls, a compromise agreement and mutual defrayal of claims with Bontan Corporation and its related parties (the “Compromise Agreement“); It is to be clarified that the company and IPC Oil and Gas partnership Israel (limited partnership) (the “partnership“), in which the company holds half of the rights in it, are not parties in the compromise agreement, however, they confirmed their approval to remove all pending mutual claims between them and any one of the parties in the compromise agreement regarding a transaction in which the company purchased its rights in the partnership and in the Sara and Myra licenses, and this is subject to the completion of the implementation of the compromise agreement as detailed below. Upon the completion of the implementation of the agreement, Bontan’s shares at IPC Cayman will be annulled.

The compromise agreement states that immediately upon its signing, all pending legal proceedings between the parties and the rest of the parties involved in the said proceedings will be halted. Additionally, Bontan and its related parties undertook not to disrupt the company and the partnership’s activity and not to take additional legal actions in the future in the issues that are relevant to the current legal proceedings.

International Three Crown Petroleum Inc, which is a private company through which Mr. Howard Cooper, the company’s chairman of the board of directors, holds the majority of his rights at IPC Cayman (“ITCP“), undertook to pay Bontan within the framework of the compromise agreement, in accordance to a timetable that was set in the agreement, payments totaling approximately $15 million (out of which the completion of the advance payment, which was paid to Bontan at the time of the signing of the agreement to $10 million at the the time of the completion and additional payments of $2 million in November 2012 and of $3 million in November 2013), as well as an additional amount of up to $3 million, whose payment is conditional upon the performance of the company’s share in the stock exchange in the period after November 2013. In addition, ITCP undertook to transfer to Bontan part of the overriding royalty it owns that relates to the Sara and Myra licenses at a total rate of 0.25%, which Bontan will be entitled to receive also in case the compromise agreement should not be fully implemented. The parties will act in accordance with the requirements of the law, including the need to receive government approvals.The date which was set for the completion of the implementation of the compromise agreement is up to 90 days as of the signing date and it may be postponed by additional periods of time as required for the receipt of the approval of the Petroleum Commissioner of the change in the ownership structure at IPC Cayman, insofar as such approval is required according to the opinion of ITCP provided that it will be no later than150 business days after the signing date. At the time of the completion of the implementation, all the parties will take legal actions to request the rejection of all their pending mutual claims.

In addition to the aforementioned changes, all the options for the receipt of Bontan’s shares, which were granted in the past to ITCP’s related parties will be immediately annulled as of the date of the signing of the compromise agreement and with no further claims.

In case of the annulment of the agreement, including due to the lack of completion of its implementation in the predetermined timetable, all the rights and mutual claims of the parties in all of the pending legal proceedings will be kept, and aside from the confiscation of the advance payment, which was provided by ITCP in favor of Bontan at the time of the signing and Bontan’s entitlement to the transfer of some of ITCP’s overriding royalty as aforementioned, no liability or any other sanction will apply in case of such said annulment.

The company’s board of directors approved the company’s agreement to annul the legal proceedings taken against the company, as a non exceptional transaction, in which IPC Cayman and its related parties have a personal interest.

Israel Petroleum Company Secures $28 Million Funding For Sara and Myra Licenses

(October 18, 2010) – Israel Petroleum Company (IPC) is pleased to announce that it has entered into an agreement with Ofer Investments, Ltd. (“Ofer”). Ofer has agreed to purchase a 50% interest in IPC’s 100% owned subsidiary, IPC Oil and Gas (Israel) Partnership, for up to US$28 million. The investment will be used to fund IPC’s share of the costs of drilling the first wells in the Sara and Myra licenses.

“We are extremely pleased to be in a partnership with one of Israel’s most prominent business groups. This agreement is in alignment with our long term goals in developing the Myra and Sara licenses and adds even more strength to an outstanding consortium,” stated Howard Cooper, manager of IPC.

About the Consortium

The Sara and Myra Drilling Licenses are held by a consortium comprised IPC Oil and Gas (Israel) Partnership (13.609%), Emanuelle Energy Ltd. (24.161%), Emanuelle Energy Oil and Gas Limited Partnership (19.161%), Modiin Energy Limited Partnership (19.282%), and other entities.

IPC is owned 76.79% by Israel Oil and Gas Corporation, a subsidiary of Bontan Corporation Inc. and 23.21% by International Three Crown Petroleum, LLC.

Cautionary Note to U.S. Investors
This news release and the Report contain references to “prospective resources” (as defined above), which do not qualify as, and should not be confused with, reserves. Under rules of the U.S. Securities and Exchange Commission (“SEC”), reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project. The SEC permits oil and gas companies, in their SEC filings, to disclose only “proved,” “probable” and “possible” reserves. Prospective resources have a great amount of uncertainty as to their existence and economic and legal feasibility. There is no assurance that prospective resources will ever convert into possible, probable or proved reserves under SEC standards. U.S. investors are cautioned not to assume that all or any part of a resource exists, or is economically or legally recoverable.

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 resources; 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 that could significantly adversely impact project economics and the commercial viability of drilling one or both prospects; 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; 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Gillian Morris, Israel Petroleum Company, Limited, ph: 970 846 1953,
email: gmorris@threecrownpetroleum.com, www.israelpetroleumcompany.com

Israel Petroleum Company Seeks Partners For Participation In Offshore Israel Oil and Gas Licenses

August 2, 2010 Denver, CO – 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.

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 (http://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 $677 million and $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 (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.