BNG Bengal Energy Ltd

Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to announce
the closing of the previously announced purchase of an additional 5.357% working
interest in the Cuisinier Oil Field and Petroleum Lease 303 ('PL303') (the
"Acquisition") in the Cooper-Eromanga Basin in Queensland, Australia and to
provide an operational update. 


Closing of Acquisition

In addition to the incremental working interest acquired in Cuisinier, the
Acquisition also includes a further 8.08% interest in the Wompi Block (ATP 752),
resulting in working interests in those two projects of 30.357% and 38.08%,
respectively. With the increased working interest in Cuisinier, going forward
the Company will realize a greater proportion of production and a corresponding
impact on cash flows for periods subsequent to December 18, 2013. As a result,
Bengal estimates it will exit calendar 2013 with corporate net production
volumes between 500-550 boe/d, weighted over 90% to ultra-light crude oil which
commands a premium to Brent pricing and contributes to strong netbacks. This
exit production estimate reflects the increased working interest gained through
the Acquisition, production contributions from all 14 wells currently tied-in,
and incorporates production declines inherent with new production. 


The effective date of the Acquisition is March 15, 2013, and the purchase price
of AUD $7.5 million / CAD $7.2 million remains subject to final closing
adjustments which are anticipated to be nominal. Bengal funded the acquisition
with proceeds from the CAD$8 million (gross) debt financing which closed July 5,
2013.


Operational Update

Bengal continues to advance its exploration and production projects in both
Australia and India. 


Tookoonooka, Australia:

In Bengal's Tookoonooka permit (ATP 732), which is located in the emerging East
Flank oil fairway of the Cooper Basin, the Company's joint venture partner,
Beach Energy Ltd., commenced activity in December 2013. Under the terms of the
joint venture agreement, Beach will drill two wells and fund the acquisition of
an additional 300 km2 of 3D seismic up to a maximum commitment of AUD$11.5
million, in order to earn a 50% interest in the permit and assume operatorship. 


On or about December 25, 2013, Beach intends to spud 'Tangalooma-1', the first
of its two fully funded wells in Tookoonooka. Tangalooma-1 is situated in close
proximity (2.1 km northeast) of Bengal's Caracal-1 well, a 52 degrees API light
oil discovery. The target for Tangalooma-1 is a deeper Hutton zone, which has
proven highly prolific in other regions within the East Flank of the Cooper
Basin, and is within 20 km of the Tangalooma-1 location. Based on this spud
date, and incorporating the impact of the holiday break, Bengal anticipates
having results from the well before the end of January 2014. Timing for drilling
of the second well in Tookoonooka will be dependent on the results from
Tangalooma-1, and Bengal will continue to provide updates as information comes
available. 


On December 10, 2013, Beach commenced its seismic acquisition program ("The
Nassarius Survey") in the north portion of the permit, which is expected to
continue through the end of January, 2014. Following the acquisition and
processing of the Nassarius Survey, a comprehensive interpretation process will
be undertaken which is designed to identify future drilling locations. 


"Bengal is very pleased to be working with one of the Cooper Basin's premier
operators, Beach Energy Ltd.," said Chayan Chakrabarty, President & CEO of
Bengal. "We believe that Beach's interest in funding the first two wells and
seismic acquisition demonstrates the great potential of our Tookoonooka asset." 


Reg Nelson, President & CEO of Beach Energy Ltd. said, "Following our success in
the Western Flank of the Basin, Beach has been seeking an equivalent to that
region and believe we have found that opportunity with Tookoonooka in the
Eastern Flank. Our joint venture with Bengal enables Beach to apply its highly
successful Cooper Basin oil exploration and operational experience to further
unlock the potential of this underexplored area of the Basin." 


Cuisinier, Australia:

At the end of November, the sixth and final well of the Company's 2013/2014
Cuisinier drilling campaign, Cuisinier-12, was successfully tied-in, bringing
the total gross number of wells on stream to 14. 


Based on the results of the most recent drilling program in Cuisinier, Bengal
and its partners have developed a dynamic model of the field which incorporates
all production history and pressure data from the 14 producing wells, which will
directly contribute to an enhanced understanding of the reservoir and allow for
efficient exploitation of the field. The operator has indicated that the early
implementation of a pressure maintenance system would improve production and
ultimate recovery, and intends to initiate such a program during 2014, with
benefits expected by year-end. 


Bengal plans to participate in an expanded 2014/2015 drilling program in
Cuisinier which includes 6 development wells, 2 appraisal wells and 1-2
contingent exploration wells located on new structures identified on 3-D
seismic. This program is scheduled to commence in second quarter of calendar
2014, and conclude in fourth quarter 2014. As a result, the impact of new
production volumes is expected in the latter half of calendar 2014.


Offshore AC/P47 Block, Australia: 

In addition to its onshore assets in the Cooper Basin, Bengal holds a 100%
interest in an offshore exploration permit, AC/P 47, situated in the Timor Sea
off Australia's northwest coast. After extensive technical review internally and
externally by potential farm-in partners, the Company determined that this
permit is very high risk and does not contain sufficient technical merit to
justify further exploration capital expenditures. In February of 2013, the
Company lodged an application to relinquish this property and has now received
Notice of Cancellation of the permit from the Australian regulating authority
"NOPTA". 


Onshore India

In Bengal's onshore India block situated within the Cauvery Basin, the Company
continues to coordinate with its partners to drill three exploration wells, the
first of which is scheduled to commence late in the first quarter of calendar
2014. All three locations are within an area of newly acquired 3D seismic and
are targeting formations between 1,200m and 2,000m depth, which are known oil
and gas producers in the offsetting Kovilkallappal and North Kovilkallappal
pools. These pools are situated between 6km and 10kms from Bengal's block, have
combined estimated recoverable reserves of more than 25 million boe according to
public sources, and are in an area with existing oil and gas infrastructure.
Continued activity in onshore India through the balance of calendar 2014 and
beyond will be dependent on the drilling results under the current planned work
program. Bengal has a 30% working interest in the block.


About Bengal

Bengal Energy Ltd. (TSX:BNG) is an international oil and gas exploration and
production company with producing and prospective light oil-weighted assets in
Australia and India. Bengal offers exposure to lower risk current production and
cash flow, combined with longer-term high potential impact exploration projects.
The Company's strategy is to achieve per share growth in cash flow, production
and reserves while establishing an attractive portfolio of future drilling and
exploration opportunities.


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 ATP 752; the
anticipated benefits of the Acquisition and anticipated year end production
increases as a result of the Acquisition; the anticipated closing adjustments in
respect of the Acquisition; the Company's expected drilling program in Cuisinier
for 2014/2015, as well as the expected timing for commencement and conclusion of
such drilling program; additional production volumes from Cuisinier as a result
of the 2014/2015 drilling programs; a proposed pressure maintenance system;
Beach's ongoing seismic acquisition program; Beach's intentions to spud
Tangalooma-1 and Bengal's anticipated announcement of results of such well; and
Bengal's proposed exploration wells onshore India. 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 for the year ended March 31, 2013 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Bengal Energy Ltd.
Chayan Chakrabarty
President & Chief Executive Officer
(403) 205-2526


Bengal Energy Ltd.
Jerrad Blanchard
Chief Financial Officer
(403) 205-2526
investor.relations@bengalenergy.ca
www.bengalenergy.ca

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