CALGARY, June 7, 2013 /CNW/ - Bengal Energy Ltd. (TSX:
BNG) ("Bengal" or the "Company") today announces that the
Cuisinier to Cook liquids pipeline located on the Barta sub-block
("Barta Block") of Authority to Prospect ("ATP") 752P in the
Cooper-Eromanga Basin in Queensland, has now been commissioned and
production from all eight Cuisinier oil wells has now commenced.
Bengal has a 25% net interest in the 360,000 acre
Barta Block. This is an
important development for Bengal, because it enables production
from the previously drilled 8 Cuisinier wells to be delivered to
sales points through a pipeline, rather than trucking. As a
result of this pipeline connectivity, volatility in production
volumes can be reduced, with opportunities to potentially enhance
netbacks. For the last fiscal year ending March 31, 2013 Bengal's field netback on this
high quality Cuisinier production was approximately CAD$70 per barrel.
Upon confirming the pipeline commissioning, the
Operator also provided updated production guidance to its JV
Partners of a combined oil production from the eight wells during
the startup phase of 1400-1500 barrels of oil per day ("bopd")
gross (350 to 375 bopd net to Bengal). Although this
represents an increase of approximately 250 bopd prior to
commissioning, this updated production guidance will result in
Bengal realizing calendar Q2 exit production volumes in the 350-375
bopd range compared to the 500+ bopd previously forecast. The
Operator also indicated that further optimization of the system may
be available which could potentially add incremental barrels.
For reference, the gross field production was approximately
1150 bopd in the month of May, 2013.
Completion and tie in work for the oil wells drilled during the
2013 Cuisinier appraisal drilling campaign is expected to commence
in July 2013 and should result in
further production volume additions by the end of the third quarter
of this calendar year. Bengal will continue to work closely
with the Operator to understand the performance of all wells
drilled in Cuisinier, to ensure forecast production numbers are as
accurate as possible, and will provide further guidance regarding
year end exit production as information becomes available.
Produced oil is being processed through the Cook oilfield
production and de-watering infrastructure with approximately 1,400
barrels of oil per day then being delivered to the sales point at
this time through the Cook to Merrimelia Oil Pipeline ("CMOP").
"Having pipeline connectivity is an important development for
the Cuisinier program, which will result in optimized delivery of
Bengal's oil to sales points now and in the future, compared with
trucking. Bengal will continue to work with the
Operator to ensure maximized production volumes are
delivered. We will update shareholders with details on
production as the Operator provides data, and as the 5 wells
drilled in the 2013 drilling campaign are also tied-in.
Bengal continues to strongly believe in the potential of our
acreage across multiple geological horizons on this block,"
commented Chayan Chakrabarty,
President & CEO of Bengal.
About Bengal
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
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; 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: Bengal's estimated calendar Q2 exit oil
production volumes; Bengal's ability to further optimize production
at Cuisinier; Bengal's ability to reduce production volatility and
netbacks at Cuisinier; the timing to commence completion and tie in
work for oil wells recently drilled at Cuisinier and expected
production volume additions resulting therefrom; the timing of
Bengal providing further guidance regarding year end exit
production; and pipeline connectivity resulting in optimized
delivery of Bengal's oil to sales points. 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 results of seismic
activities and related operations; changes in anticipated operating
and transportation costs; changes in pipeline accessibility; 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.
Netbacks
Netback is a non-IFRS measure. Netback per bbl is calculated
by dividing the revenue less royalties, operating and
transportation costs in total for the Company by the total
production of the Company measured in boe.
SOURCE Bengal Energy Ltd.