Bengal Energy Provides Cuisinier Operations Update
Monday, May 04, 2015
Bengal Energy Ltd. (TSX:BNG) (“Bengal” or the “Company”) announces that the Company and its joint venture parties (“JV”) have completed the Phase Two drilling campaign on ATP 752 Barta Block (Bengal’s working interest 30.357%). Average gross production from the Cuisinier field in March 2015, prior to the tie-in of the new Phase Two wells and the reactivation of the Cuisinier-6 well, was approximately 1,653 barrels of oil per day (“bopd”) (502 bopd net to Bengal).

The Phase Two drilling campaign exceeded Bengal’s technical and commercial expectations. With three of the four cased wells now completed as oil wells, the JV has successfully expanded the pool boundaries and tested the structural flank positions for the presence of oil.

The last well of the Phase Two drilling campaign, Cuisinier-21, tested the northwest flank of the Cuisinier structure. The well encountered oil in the Murta DC70 zone with reservoir pressure at approximately 96% of virgin pressure. The Murta DC70 zone in this well came in structurally below what had been established by other producing wells. Upon perforation the Cuisinier-21 well naturally flowed approximately 380 bopd at 100% oil cut. Bengal expects production rates from the well to increase through mechanical lifting. The Cuisinier-21 results confirm a significant increase in the pool size and establish an oil column greater than 42 metres within the Murta DC70, which factors Bengal expects to contribute to an increase in the pool’s discovered oil initially-in-place and reserves.

Cuisinier-20, the second of two development wells in the Phase Two drilling campaign, came in on structure, encountering a well-developed Murta DC70 channel sand that is approximately 14 metres thick, which on logs resembles Bengal’s original Cuisinier-1 discovery well. To date, the Cuisinier-1 well has had cumulative production of over 192,000 barrels of oil. Cuisinier-20 has been perforated and completed as an oil well. Final on-stream production rates will be confirmed once the well is put into production. Both Cuisinier-20 and 21 are being flow line connected into Cuisinier facilities and are expected to come on stream in the coming weeks, adding to Bengal’s aggregate production volumes.

The remaining Phase Two wells, Cuisinier-17 and Cuisinier-19, were drilled on the northwest and southeast flanks of the Cuisinier structure, respectively. The Cuisinier-17 well was cased and perforated, has swabbed low rates of oil and has now been suspended pending finalization of an appropriate stimulation program. The Cuisinier-19 well encountered a thick Murta DC70 sand within the established oil window. However, it also appears to have sub-optimal permeability. Given the current volatility of crude oil prices, the Company will evaluate various stimulation options for both Cuisinier-17 and 19 prior to committing additional capital.

Cuisinier-6 Update – The operator has now completed remediation work at the Cuisinier-6 well by setting a bridge plug to isolate a potential water source below the Murta formation. This well is scheduled to be put back on production in the very near term.

“We are very pleased with the results of our 2014 drilling program that has continued our historical pool extensional success,” said Chayan Chakrabarty, Bengal’s President and CEO. “We have added to our production base providing an excellent foundation for future production and reserve additions. We also are enjoying attractive net-backs, in particular as compared to our North American peers, as assisted by our advantageous hedging position. Our success gives Bengal the confidence that it can continue to grow in these difficult times. Our goal is to stay focused on costs while continuing to grow the Company’s reserves base, production rate and net asset value.”

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.

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