Bengal Energy (BNG-T) Announces Exploration Discovery in Australia
Sept 9, '16 - NR
Bengal Energy is pleased to announce that the first four wells of the Cuisinier 2016 five well drilling campaign have been cased as future oil producers in the Murta horizon.
The most recent well, Shefu-1, was drilled as a near field exploration well situated on the western flank of the Cuisinier Petroleum Lease 303 ("PL 303"), approximately 3.6 kilometers west of the nearest Cuisinier development well, Cuisinier-17. The Shefu-1 well encountered 8.1 meters of gross sand with 7 meters of net pay exhibiting normal gradient, virgin pressure. PL 303 is located with the Barta Permit, ATP 752.
At Shefu-1, oil pay was found to occur structurally lower than what has been encountered in previous rounds of appraisal drilling at Cuisinier, therefore lowering the "lowest known oil" for the area. Bengal's internal estimates suggest that this Shefu-1 result has the potential to materially increase the Cuisinier area oil in place and reserves, given that the Murta reservoir in the Shefu-1 area is well outside of Bengal's currently booked 1P, 2P and 3P reserves areas.
"This discovery is another exciting example of the opportunity in front of us as we continue to explore and develop our significant light oil assets in the Cuisinier basin," said Chayan Chakrabarty, President and CEO of Bengal. "While further testing is needed to illustrate the full production potential from the Sefu-1 well, expanding the known oil in place at Cuisinier further confirms the excellent new reserves potential and supports our overall plan to continue developing the multiple commercial finds at the Barta Permit."
The drilling rig is now moving to the fifth and last well of the campaign at the Cuisinier 24 development location. Completion and pipeline connection of Shefu and all the Cuisinier wells from the current campaign is expected to occur in Q1 2017. Further details and full results of the 2016 drilling campaign will be released at a later date.
Bengal holds a 30.357% working interest in the Barta Permit, ATP 752 and PL 303.
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. 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.
Oil and Gas Advisories
As Bengal has not produced, or production tested, any of the wells referenced in this news release, the results of Bengal's Cuisinier 2016 drilling campaign to date cannot be considered necessarily indicative of the long-term performance of, or ultimate recovery from, such wells. Accordingly, such results should be considered preliminary pending such wells being tied-in and commencing production.
Further, this press release includes estimates of pay thickness and areal extent in the Cuisinier oil field, which are considered to be anticipated results or information that indicate the potential value or quantities of resources under National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Such estimates have been prepared by management of Bengal and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. The risks associated with these estimates include, but are not limited to, the risk that Bengal's exploration and development drilling and related activities may provide different results; the risk that Bengal may encounter unexpected drilling results; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas; delays in anticipated timing of drilling and completion of wells; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and the risk that if any resources are discovered that it will not be commercially viable to produce any portion thereof. There is no certainty that Bengal will achieve the estimated results from the Cuisinier oil field or that any portion of the resources will be discovered. If discovered, there is also no certainty that it will be commercially viable to produce any portion of the resources.
Bengal Energy Ltd.
Chayan Chakrabarty
President & Chief Executive Officer
Jerrad Blanchard
Chief Financial Officer
(403) 205-2526
investor.relations@bengalenergy.ca
www.bengalenergy.ca |
