Bengal Energy Provides Update on Production Testing at Cuisinier Oil Field Production Tests Exceed Initial Estimates in Australia's Cooper Basin
CALGARY, Nov. 6, 2012 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to report that it has been advised by the operator of the Cuisinier Oil Field of initial production testing results from recently drilled wells. The Cuisinier Oil Field is located within the boundaries of the Barta sub-Block of Authority to Prospect ("ATP") 752P in the Cooper/Eromanga Basins in the State of Queensland, Australia. Bengal has a 25% working interest in the Cuisinier Oil Field and the Barta sub-Block of ATP 752P.
Combined new oil production from three of the four recently drilled and completed wells, all of which targeted the Murta formation, amounts to approximately 1,800 barrels of oil per day (bopd) (net 450 bopd to Bengal) which exceeds the initially estimated volumes. Additional incremental production is expected in the near future when the Cuisinier North 1 and Barta North 1 wells are commissioned. All of these wells will be produced under recently issued Extended Production Tests ("EPT's"). Oil from these new wells will be trucked to a sales point under the current production system. Current Cuisinier facility capacity is limited to approximately 1,300 barrels per day (net 325 bopd to Bengal) provided that two triple tanker loads are available daily.
Facilities upgrade and pipeline connection from Cuisinier to the Cook Oil Field facility is forecasted to be completed by the second quarter of 2013 subject to receipt of the necessary approvals. These steps will enable full field production (currently 8 wells) from Cuisinier upon receipt of the Petroleum Lease for the Cuisinier oil field. The existing Cuisinier 1, 2 and 3 wells have been shut-in awaiting grant of a Petroleum Lease ("PL"), which is anticipated by the second quarter of 2013. Granting of the PL will allow all 8 Cuisinier wells to produce.
In addition, the previously announced 224 square kilometer 3D seismic program has commenced and will evaluate the area to the north of the Cuisinier pool for additional prospectivity in both the Murta and deeper zones.
"We're pleased not only with the success of the Cuisinier completion program, but also with the higher than estimated initial production rates from the new wells." said Chayan Chakrabarty, President & CEO of Bengal.
The Cuisinier structure has been interpreted from 3D seismic data by Bengal to be one of several culminations in the area. The planned additional appraisal drilling will determine the ultimate size of the structure and the extent of the Murta reservoirs.
Bengal believes that the Cuisinier structure has the potential to host oil in additional reservoirs. The adjacent Cook Oil Field produces oil from the prolific Hutton reservoir. Cuisinier wells have also had oil shows in the Birkhead and Triassic targets. Results in the Cuisinier-Cook area show that significant oil accumulations can be found in different reservoirs in this region.
Bengal has interests in four other permit areas in the Cooper Basin.
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in India and Australia. 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 timing and execution of capital plans for ATP 752P where Bengal is not the operator; 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 completion, perforation and testing operations; 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: future oil production rates, timing of oil production coming on stream at Cuisinier, transportation methods, timing of completion and transportation and other facilities construction, receipt of regulatory approvals, granting of petroleum leases and licenses, drilling plans, capital expenditure requirements, and the approximate size and nature of seismically defined features. 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: failure to secure required equipment and personnel; access to capital; 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 required pursuant to applicable securities laws.
SOURCE Bengal Energy Ltd.