Bengal Announces Commencement of the 2013 Cuisinier Development and Appraisal Well Drilling Campaign in the Cooper Basin, Australia
CALGARY, March 22, 2013 /CNW/ - Bengal Energy (TSX: BNG) ("Bengal", or the "Company") is pleased to announce that drilling operations on the Cuisinier 7 appraisal well ("Cuisinier 7"), the first well of the planned 2013 five-well development and appraisal drilling campaign, commenced on March 20, 2013. Cuisinier 7 is located on the Company's 25%-owned Barta sub-block of Authority to Prospect ("ATP") 752P. Cuisinier 7 is an immediate offset to the Cuisinier 6 well, which on its Extended Production Test period has shown average daily production rates of 750 barrels of oil per day ("bopd") (187 bopd net to Bengal) since testing began on October 15, 2012.
The Cuisinier drilling program includes five firm and one contingent development and appraisal wells and is designed to optimize pool productivity and to further define ultimate pool size. Each well is targeting the primary Murta Formation. Total drill depth is approximately 1,750 metres per well and drilling and evaluation time for each well is anticipated to be approximately two weeks excluding move times.
For the month of January 2013, production of 52 degree gravity oil from the Cuisinier pool has been sold at Brent pricing plus a quality premium averaging US$120 per barrel. Field netbacks after royalties and operating and transportation costs are estimated by Bengal to be approximately US$75 per produced barrel.
Bengal has been advised by the operator of the Cuisinier project that receipt of regulatory approvals and ministerial grant of the Petroleum Lease allowing for concurrent production of all eight wells in the Cuisinier pool is anticipated in April 2013. In addition, the sales pipeline from Cuisinier to the nearby Cook production facility has been completed. Tie in of these eight Cuisinier wells to the production infrastructure at the Cook facility is expected during April 2013 and once completed is expected to provide an approximate $7.00 per barrel decrease in operating and transportation costs and increase net production from 325 bopd to between 500 - 600 bopd.
Final processing and interpretation of the Cuisinier North 3D seismic program acquired in late 2012 is expected mid-year 2013. This new subsurface data was designed to identify structural and stratigraphic anomalies at multiple levels and is anticipated to lead to additional exploratory and development drilling opportunities in 2014.
The Barta sub-block of ATP 752P is located on the north western flank of the Cooper Basin in the State of Queensland, Australia in an area of new discoveries and established oil and gas production and infrastructure.
Bengal also advises it has posted an updated corporate presentation on its website at www.bengalenergy.ca. The updated presentation includes guidance with respect to the anticipated production exit rate for 2013.
Bengal Energy Ltd. is an international junior oil and gas exploration and production company based in Calgary, Alberta. 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.
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: Cuisinier drilling campaign, including, without limitation, the timing, number of wells, drill depth and targeted zones; grant of the Petroleum License; tie-in to the Cook facility; anticipated decrease in operation and transportation costs, increased production uptime; receipt of regulatory approvals, and timing of completion of processing and interpretation of Cuisinier North 3D seismic program. 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 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.
Netback is a term that is not defined under International Financial Reporting Standards and is used by Bengal as a supplemental measure in evaluating the Company's financial position and performance. Netbacks are defined as revenues minus royalties and transportation and operations costs.
SOURCE Bengal Energy Ltd.