Bengal Energy Announces Record Production and Operational Update from Activities in Cooper Basin, Australia
August 28 2013 - 7:00AM
Marketwired
Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") today
announces record production volumes along with an operational
update from its activities in the Cooper Basin, Queensland,
Australia.
Production Volumes:
Bengal is pleased to announce that during July 2013, 11 of the
14 wells in its Cuisinier area (PL 303) of the Cooper Basin were
producing, and achieved average monthly gross production of 1,936
barrels of oil per day (b/d). Based on the Company's 25% working
interest in Cuisinier, net production to Bengal would be 484 b/d,
an increase of 55% over the oil volumes reported in the most recent
quarter.
Applying the Company's increased working interest in the field
of 30.357% (the acquisition of which is expected to close in
September 2013, effective March 15, 2013), Bengal's average volumes
from Cuisinier in July would be 587 b/d net, a 68% increase over
the oil volumes reported in the last quarter. Additional volumes
are expected as the remaining 3 wells are brought on-stream through
September, 2013.
The Company's growing production base coupled with strong
operating netbacks of $79.82 per barrel in the most recent quarter
support Bengal's strong cash flow generating trend.
Operational Update
Cuisinier 12, the final well of 6 in the 2013 Cuisinier drilling
campaign, has been cased as a future oil producer, and continues
Bengal's 100% drilling success rate in this exciting, potential
resource play asset. The well encountered 3.8 meters of net oil pay
in the Murta DC70 sands, directly offsetting the producing
Cuisinier 6 and 7 wells. Completion of the Cuisinier 12 well is
expected to commence in early September 2013 with production
anticipated shortly thereafter.
Progress continues in Bengal's other key Cooper Basin asset, the
Tookoonooka permit (ATP 732), where the Company recently announced
a farm-in and joint venture agreement with a very experienced
Cooper Basin operator. This farmout consists of a commitment by the
partner to drill two wells and acquire 300 square km of 3D seismic,
spending up to AUD$11.5 million. Planning for commencement of the
drilling and seismic activity on this 654,000 acre permit is under
way, and the first drilling location will be positioned to appraise
Bengal's existing Caracal light oil discovery as well as deeper
targets. It is anticipated the first well and the 3D seismic will
be completed before the end of calendar 2013, with the second well
to be situated within the boundaries of the new 3D seismic.
"Bengal is very pleased to report further increases to our
production and continued progress in the appraisal and development
of our Australian assets," said Chayan Chakrabarty, President &
CEO of Bengal. "With a growing production base that is light oil
weighted, and which generates very strong operating netbacks,
Bengal is well positioned to continue growing cash flow and
reserves. We look forward to keeping shareholders updated on our
progress and success."
About Bengal
Bengal Energy Ltd. is an international junior oil and gas
exploration and production company with assets in India and
Australia. The company is committed to growing shareholder value
through international exploration, production and acquisitions.
Bengal trades on the TSX under the symbol BNG.
Additional information is available at www.bengalenergy.ca
Forward-Looking Statements
This news release contains certain forward-looking statements or
information ("forward-looking statements") as defined by applicable
securities laws that involve substantial known and unknown risks
and uncertainties, many of which are beyond Bengal's control. These
statements relate to future events or our future performance. All
statements other than statements of historical fact may be forward
looking statements. The use of any of the words "plan", "expect",
"prospective", "project", "intend", "believe", "should",
"anticipate", "estimate", or other similar words or statements that
certain events "may" or "will" occur are intended to identify
forward-looking statements. The projections, estimates and beliefs
contained in such forward looking statements are based on
management's estimates, opinions, and assumptions at the time the
statements were made, including assumptions relating to: the impact
of economic conditions in North America, Australia, India and
globally; industry conditions; changes in laws and regulations
including, without limitation, the adoption of new environmental
laws and regulations and changes in how they are interpreted and
enforced; increased competition; the availability of qualified
operating or management personnel; fluctuations in commodity
prices, foreign exchange or interest rates; stock market volatility
and fluctuations in market valuations of companies with respect to
announced transactions and the final valuations thereof; and the
ability to obtain required approvals and extensions from regulatory
authorities. We believe the expectations reflected in those
forward-looking statements are reasonable but, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Bengal will derive from them. As such, undue reliance
should not be placed on forward-looking statements. Forward-looking
statements contained herein include, but are not limited to,
statements regarding: Bengal's estimated oil production volumes
after giving effect to the organization of the additional interest
in ATP752; the closing of the acquisition of the additional
interest in ATP 752; additional production volumes from the 2
remaining Cuisinier wells; Bengal's strategies for and ability to
further optimize production at Cuisinier; Bengal's ability to
reduce production volatility and netbacks at Cuisinier; the timing
to commence completion and tie in work for oil wells recently
drilled at Cuisinier and expected production volume additions
resulting therefrom; drilling and seismic activities on ATP 732,
including, without limitation, the timing to complete the first
well and the 3D seismic program; the timing of Bengal providing
further guidance regarding year end exit production; and pipeline
connectivity resulting in optimized delivery of Bengal's oil to
sales points.
The forward looking statements contained herein are subject to
numerous known and unknown risks and uncertainties that may cause
Bengal's actual financial results, performance or achievement in
future periods to differ materially from those expressed in, or
implied by, these forward-looking statements, including but not
limited to, risks associated with: the failure to obtain required
safety assessments and rig acceptance; failure to secure required
equipment and personnel; changes in general global economic
conditions including, without limitations, the economic conditions
in North America, Australia, India; increased competition; the
availability of qualified operating or management personnel;
fluctuations in commodity prices, foreign exchange or interest
rates; changes in laws and regulations including, without
limitation, the adoption of new environmental and tax laws and
regulations and changes in how they are interpreted and enforced;
the results of exploration and development drilling and related
activities; the results of seismic activities and related
operations; changes in anticipated operating and transportation
costs; changes in pipeline accessibility; the ability to access
sufficient capital from internal and external sources; failure to
obtain or delays in obtaining regulatory approvals; and stock
market volatility. Readers are encouraged to review the material
risks discussed in Bengal's Annual Information Form under the
heading "Risk Factors" and in Bengal's annual MD&A under the
heading "Risk Factors". The Company cautions that the foregoing
list of assumptions, risks and uncertainties is not exhaustive. The
forward-looking statements contained in this news release speak
only as of the date hereof and Bengal does not assume any
obligation to publicly update or revise them to reflect new events
or circumstances, except as may be require pursuant to applicable
securities laws.
Netbacks
Netback is a non-IFRS measure. Netback per bbl is calculated by
dividing the revenue less royalties, operating and transportation
costs in total for the Company by the total production of the
Company measured in boe.
Contacts: Bengal Energy Ltd. Chayan Chakrabarty President &
Chief Executive Officer (403) 205-2526 Bengal Energy Ltd. Bryan
Goudie Chief Financial Officer (403)
205-2526investor.relations@bengalenergy.ca www.bengalenergy.ca
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