CALGARY, April 25, 2013 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce that the Company has received the final grant of Petroleum Lease 303 ("PL 303") from the Queensland Government in Australia, allowing all eight Cuisinier oil wells to produce.
Over the past month, oil production from the Cuisinier field has averaged approximately 1,100 barrels of oil per day ("bopd") (275 bopd net to Bengal) of 52 degree gravity oil without benefit of volumes from the shut in Cuisinier 1, 2 and 3 wells. The wells on production have been produced on Extended Production Tests and have been constrained by 1,300 barrel per day tank and truck load-out capacity at Cuisinier 1. The output when all eight wells are on production is expected to reach 2,000 to 2,500 bopd (500 to 625 bopd net to Bengal).
The grant of PL 303 located within the boundaries of the Barta sub-block of Authority to Prospect ("ATP") 752P is significant because Bengal's Cuisinier 1, 2 and 3 wells have been shut in awaiting grant of the PL. The Department of Natural Resources and Mines has granted PL 303 for a term of 21 years commencing on April 8, 2013 and will allow production from all current and future wells in the Cuisinier oil pool (the "Cuisinier Pool"). PL 303 is 64.4 square kilometres in size.
Currently there are eight wells in the Cuisinier Pool that are capable of production and the Company recently announced that Cuisinier 7 and Cuisinier 8, the first two wells in the 2013 Cuisinier appraisal drilling campaign on ATP 752P have now been cased as future oil producers. Additionally, three firm and one contingent well will immediately follow Cuisinier 8, all of which are positioned 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. Drilling and evaluation time for each well is anticipated to be approximately two weeks excluding move times. The operator expects to commence down-hole completion activities at Cuisinier in July 2013 once the drilling campaign has been completed.
Bengal holds a 25% working interest in ATP 752P located in the Cooper-Eromanga Basin, in Queensland, Australia.
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia and India. 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: the Cuisinier 2013 drilling campaign, including, without limitation, the timing, number of wells, drill depth and targeted zones; down-hole completion activities, including, without limitation, the timing thereof. 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.
SOURCE Bengal Energy Ltd.