Bengal Energy Announces 100% Success Rate in Cuisinier Phase One
Development Drilling Program and Provides Operational Update
CALGARY, ALBERTA--(Marketwired - May 14, 2014) - Bengal Energy
Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to provide an
operational update, including details of the Company's recent
successful Phase One drilling campaign at its Cuisinier ultra-light
oil property situated within the Barta Sub Block (ATP 752) in
Australia's Cooper Basin.
Cuisinier,
Australia
From late March to early May, 2014, Bengal carried out the first
of its two-phase development and appraisal drilling campaign in
Cuisinier (Barta Sub Block, ATP 752), an asset in which the Company
has a 30.357% working interest.
The four Phase One development wells were drilled with 100%
success and each has been cased and suspended awaiting completion
as a future oil producer. The wells were targeting the oil-bearing
Cretaceous Murta formation, and Bengal's preliminary petrophysical
analysis of the well logs shows results comparable with that
encountered in Bengal's six best Cuisinier wells drilled in
previous campaigns. This success rate and corresponding log data
further validate Bengal's 3D seismic interpretation and its team's
unique understanding of the Murta reservoir as it is developed
across the broad Cuisinier structure.
Completion of the four wells is anticipated to run from mid-July
through early August 2014, with the wells expected to be tied-in
through September and early October, 2014. Based on this timing,
Bengal anticipates the impact from new production volumes to be
realized in the fourth quarter of calendar 2014.
The Phase Two drilling program is expected to commence in
mid-Q4, calendar 2014 and will include four development / appraisal
wells, and potentially up to two exploration wells. This will
enable Bengal and its partners to benefit from data obtained in
Phase One and to high‐grade locations for Phase Two with a view to
enhancing productivity and expanding the boundaries of the
pool.
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 is partnered with Beach Energy Ltd. ("Beach"). In 2013
Beach and Bengal entered into a joint venture agreement ("JV")
whereby Beach agreed to fund up to AUD$11.5 million to drill two
wells and acquire 300 km2 of new 3D seismic, in exchange for a 50%
interest in the permit. Beach completed the acquisition of the
seismic in Tookoonooka during January and February 2014. The
processing of seismic has commenced and is expected to continue
until late 2014. Based on the seismic interpretation, a second well
location is expected to be identified for drilling within the first
half of 2015.
Wompi,
Australia:
Bengal's 38% working interest area of Wompi (Barta Sub Block,
ATP 752) features multi-zone potential offering moderate risk
exploration within a well-established oil producing fairway. The
Company plans to drill one exploration well within the second half
of calendar 2014, followed by the acquisition of 210 km2 of new 3D
seismic in 2015.
Onshore
India:
In Bengal's onshore India block situated within the Cauvery
Basin (CY-ONN-2005/1 - 30% WI), the Company is working with its
partners, Gas Authority of India Ltd. ("GAIL") and Gujarat State
Petroleum Corporation ("GSPC") to coordinate the drilling of three
exploration wells. The wells are expected to be drilled by GAIL,
the operator, with drilling anticipated to commence by mid-Q3
calendar 2014. The delays experienced to date have stemmed from
regulatory and permitting issues, which are being addressed by the
operator. Bengal continues to work with its partners and the
relevant government agencies to advance the drilling program.
Corporate:
Corporate production volumes during the quarter ending March 31,
2014 ranged between 480 and 500 boe/d net to Bengal, and continue
to support the Company's positive cash flow generation.
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 on our website 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; results of
exploration and testing activities; 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: the completion and tie-in of
the four wells at Cuisinier and the realization of the impact of
such new production, the timing to drill one exploration well on
the Wompi permit and the acquisition of additional 3D seismic, the
timing for the Company to interpret seismic and evaluate a second
prospective drilling location in the Tookoonooka area, and the
timing for the drilling of up to three 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
regulatory approvals or extensions; failure to satisfy the
conditions under farm-in and joint venture agreements; 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 ability to access sufficient capital from internal
and external sources; 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.
Barrels of Oil Equivalent
When converting natural gas to equivalent barrels of oil,
Bengal uses the widely recognized standard of 6 thousand cubic feet
(mcf) to one barrel of oil (boe). However, a boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf:
1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on
the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
Bengal Energy Ltd.Chayan ChakrabartyPresident & Chief
Executive Officer(403) 205-2526Bengal Energy Ltd.Jerrad
BlanchardChief Financial Officer(403)
205-2526investor.relations@bengalenergy.cawww.bengalenergy.ca
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