Welcome!

News Feed Item

Bengal Energy Announces Largest Drilling Campaign in Company History and Operational Update

CALGARY, ALBERTA -- (Marketwired) -- 03/31/14 -- Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce the commencement of the largest drilling campaign in the Company's history, with 15 wells planned to be drilled over the next 12 months. Bengal also provides details about this drilling program and an update on its ongoing operations in both Australia and India.

Operational Update

A summary of the drilling program and upcoming milestones in both Australia and India follows.

Cuisinier Drilling- Calendar 2014

Bengal is very pleased to announce its calendar 2014 Cuisinier drilling program (within Authority to Prospect "ATP" 752 - Barta Permit, 30.357% working interest ("WI")) commenced the week of March 25, 2014 with the spud of the Cuisinier-14 development well. Under the 2014 program, Bengal and its joint venture partners (the "JV") plan to drill up to 10 vertical wells in two distinct phases, including 8 development / appraisal wells and 2 exploration wells.


   Phase One - Expected to run from late March 2014 to June 2014, with 5
   wells expected to be drilled (4 development and 1 exploration) through
   that period. Each of these wells will be targeting 52 degrees API,
   ultra-light crude oil, with the locations having been selected based on
   an improved understanding of the regional geology and enhanced
   interpretation of 3D seismic. The Phase One drilling locations were
   selected based on criteria observed in the 6 best performing wells of a
   total of 14 drilled at Cuisinier by the JV to date. These 6 better
   performing wells have demonstrated an average gross initial production
   rate over 90 days ("IP90") of 360 barrels of oil per day (BOPD).

   The Company plans to drill one exploration well in the Company's
   Barta/Cuisinier area targeting both the Cuisinier-type productive Murta
   zone as well as the deeper Birkhead - Hutton zones. The Birkhead-Hutton
   zones are very prolific producers in other analog pools within the Cooper
   basin. There are a number of locations for this exploration well
   currently under final review. All of these prospects have targeted
   independent structural closures within the Cuisinier North 3D area
   immediately adjacent to the Cook and Cuisinier oil fields.

   Phase Two - Expected to commence in calendar mid-Q4, 2014, during which
   the JV will drill 4 development/appraisal wells and 1 exploration well at
   Cuisinier. The JV will benefit from results obtained in Phase One and
   will be able to use that information to high-grade locations for Phase
   Two with a view to enhancing productivity and expanding the boundaries of
   the pool. The exploration well is planned for the end of Phase Two,
   (calendar Q1 2015) and will test another Cuisinier North prospect which
   has been identified on 3D seismic just north of the producing Cook and
   Cuisinier fields. Due to the phased drilling approach, production impacts
   at Cuisinier will be staggered through the balance of calendar 2014. With
   success, Phase One wells are expected to be tied in during calendar Q3
   2014 and Phase Two wells are expected to come on-stream at the end of the
   fourth calendar quarter of 2014.

Bengal plans to announce the overall results of Phase One upon completion of that part of the drilling campaign.

Wompi

In the Wompi Permit (ATP 752 - WI 38%), the JV is planning to drill one exploration well in calendar Q3 2014 targeting Birkhead, Westbourne and Adori formations known to produce in the offsetting Bowen Field located immediately north of the proposed location. Wompi offers Bengal moderate risk exploration in a well-established, oil producing fairway featuring multi-zone potential.

Tookoonooka

In Bengal's Tookoonooka area (ATP 732), partner Beach Energy concluded the acquisition of 300 km2 of new 3D seismic across the block in February, which was fully funded by Beach under the terms of the Joint Venture Agreement ("JVA") with Bengal. The JVA terms provide for Beach to expend AUD$11.5 million to acquire the 3D seismic and drill up to two wells to earn a 50% interest in the Tookoonooka block. The first exploration well was drilled in late 2013 but was not commercial. The seismic data will now undergo processing with interpretation to follow. The new 3D seismic will be utilized to aid Beach and Bengal in selecting the location for the next exploration well to be funded by Beach under the terms of the JVA. This seismic will also be used in evaluating a number of future prospects for a potential series of exploration wells that are expected to be drilled at Tookoonooka under the JVA.

Onshore India

In Bengal's onshore India block situated within the Cauvery Basin (CY-ONN-2005/1 - 30% WI), the Company continues to coordinate with its partners, Gas Authority of India Ltd. ("GAIL") and Gujarat State Petroleum Corporation ("GSPC") for the drilling of three exploration wells. The wells are expected to be drilled by GAIL, the operator, and the first is expected to commence by mid Q3 calendar 2014. The delays that the Company has experienced with respect to this project have stemmed from regulatory and permitting issues, which are aggressively being addressed by the operator. Bengal continues to work with its partners and the relevant government bodies to advance drilling.

Funding of Capital Program

Bengal expects to fund its share of the costs under Phase One of its Cuisinier drilling campaign and the exploration programs at Tookoonooka and onshore India through sources such as current cash on hand, ongoing cash flow and its ability to expand on existing financing arrangements if necessary. Bengal is evaluating a number of lending options with a variety of Canadian-based and international lenders to finance the remainder of its capital programs and provide flexibility respecting future development across all of its permits, at the lowest possible cost of capital.

"The Bengal team has worked extremely hard with its partners to develop a 2014 drilling program that could potentially have the largest impact on the Company in its history. We are very pleased to commence this program which anticipates the drilling of 15 new wells across 4 different onshore permits," said Chayan Chakrabarty, President and CEO of Bengal. "Bengal is very well positioned to provide our shareholders with an exciting, catalyst-rich period over the next 10 -12 months."

Bengal also advises that an updated presentation will be posted on the Company's website no later than April 4th, which contains additional information pertaining to the calendar 2014 drilling program.

About Bengal

Bengal Energy Ltd. (TSX: BNG) is an international oil and gas exploration and production company with producing and prospective light oil-weighted assets in Australia and India. Bengal offers exposure to lower risk, current production and cash flow, combined with longer-term high, potential impact exploration projects. The Company's strategy is to achieve per share growth in cash flow, production and reserves while establishing an attractive portfolio of future drilling and exploration opportunities. Additional information is available on our website 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; results of exploration and testing activities; 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 carrying out of a 10 well drilling program by the Company at Cuisinier in 2014 in two phases, including the timing to drill, tie-in and put on production the up to 10 wells to be drilled and the timing to announce results of such drilling, the timing to drill one exploration well on the Wompi permit, the timing for the Company to interpret seismic and evaluate prospective drilling locations in the Tookoonooka area, the timing for the drilling of up to three exploration wells onshore India, the funding by the Company of its share of the costs of the first phase of drilling at Cuisinier out of ongoing cash flow and the timing for the Company to enter into a credit facility. 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 regulatory approvals or extensions; failure to satisfy the conditions under farm-in and joint venture agreements; 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; 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.

Barrels of Oil Equivalent

When converting natural gas to equivalent barrels of oil, Bengal uses the widely recognized standard of 6 thousand cubic feet (mcf) to one barrel of oil (boe). However, a boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.