Bengal Energy Announces Agreement to Increase Interest in the Cuisinier Oil Field and Related Permit ATP 752P to 30.357%
CALGARY, June 26, 2013 /CNW/ - Bengal Energy (TSX: BNG) ("Bengal", or the "Company") is pleased to announce that it has exercised its pre-emptive right to purchase an additional 5.357% interest in the Cuisinier Oil Field and the Authority to Prospect ("ATP") 752P (the "Acquisition") in the Cooper-Eromanga Basin in Queensland, Australia, bringing the Company's total ownership to 30.357%. The Cuisinier Oil Field has 13 successful light oil wells drilled to date, is connected by pipeline to the Cook Processing Facility, and currently generates production of approximately 375 barrels of oil per day ("b/d") net to Bengal. After giving effect to the Acquisition, this production is expected to increase by more than 20%, to approximately 455 b/d. Over the coming months, the Company will be well positioned to further benefit from additional volumes coming on-stream once the five successful wells drilled in the 2013 campaign are tied in, which is anticipated to occur in September of this year.
Bengal's purchase price for the additional interest is expected to be approximately AUD $7.6 million (CAD $7.4 million) and is subject to closing costs and normal closing adjustments from the effective date of March 15, 2013. Bengal anticipates securing predominantly debt financing for the Acquisition and will provide further information once additional details are available with respect thereto.
Bengal is exercising its pre-emptive right pursuant to the proposed sale by one of the joint venture partners of a 15% interest in ATP 752P for AUD $20 million. The Acquisition will be effected by way of an asset sale agreement, which the Company expects to enter into in July 2013, and will be subject to receipt of necessary governmental approvals in Australia.
"Increasing our ownership in Cuisinier is a very positive development for Bengal," said Chayan Chakrabarty, Bengal's President & Chief Executive Officer. "As a result of this Acquisition, net production to Bengal will increase by more than 20%, and coupled with the area's attractive netbacks, enables us to generate higher incremental cash flows. Further, the Company will be positioned to realize a greater proportion of future booked reserves, which is expected to enhance the Company's growth and underlying value."
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 forward-looking 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, without limitation, 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: a future financing to fund the Acquisition; completion of the Acquisition; the benefits of the Acquisition; and receipt of all regulatory approvals in respect of the Acquisition. 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: a failure to secure debt financing to fund the Acquisition; failure to receive governmental approvals in respect of the Acquisition; failure to complete the Acquisition on the timeline anticipated or at all; failure to realize the anticipated benefits of the Acquisition; 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; delays or changes in planned operations; operational risks associated with exploration, development and production; the results of geological, geophysical and reservoir analysis; results of drilling and seismic activities; results of due diligence investigations; 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.
SOURCE Bengal Energy Ltd.