VAIL, Colorado, October 18, 2010 /PRNewswire/ -- 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: +1-970-846-1953, email: gmorris@threecrownpetroleum.com, http://www.israelpetroleumcompany.com

SOURCE: Israel Petroleum Company

CONTACT: Gillian Morris of Israel Petroleum Company, Limited,+1-970-846-1953, gmorris@threecrownpetroleum.com