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Source: Bengal Energy Ltd.
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  • The planned development is taking place on its 100 per cent working interest in the Wareena, Ghina, Karnak and Ramses Petroleum Leases and the Caracal well
  • Bengal Energy is continuing its exploration program and will participate in drilling the Chef exploration well in its Cuisinier project area
  • Ms. Fatemeh Kamali, Ph.D., Petroleum Engineer, and Mr. Michael Nisbet, Geologist, have joined Bengal as consultants effective September 1, 2021
  • The company is in the process of finalizing its reinstatement plans for its working interest PLs near ATP 934
  • The program will allow Bengal to transition into a Cooper Basin operator
  • Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia
  • Bengal Energy Ltd. (BNG) opened trading at C$0.085 per share

Bengal Energy (BNG) is pleased to provide an update on its planned natural gas and oil development programs.

The planned development is taking place on its 100 per cent working interest in the Wareena, Ghina, Karnak and Ramses Petroleum Leases (PLs), as well as the re-entry and fracture stimulation of its 100 per cent-owned Caracal well on ATP 732 in its Cooper Basin operating area.

In addition, Bengal Energy is continuing its exploration program and will participate in drilling the Chef exploration well in its Cuisinier project area and benefit from a free carried exploration well at the Legbar location on its ATP 934 farmout block.

To assist in these programs, the company is pleased to announce that Ms. Fatemeh Kamali, Ph.D., Petroleum Engineer, and Mr. Michael Nisbet, Geologist, have joined the team as consultants effective September 1, 2021. Both individuals are based in Australia and bring invaluable experience in their respective fields to Bengal’s team.

Kai Eberspaecher, Chief Operating Officer of Bengal, commented, “As we are ramping up activities in our Cooper Basin operating area, it is important to build a local team to assist Bengal in managing its operations efficiently and safely.”

Development program

PL 1110 Wareena, PL 411 Karnak, PPL 138 pipeline, PL 1109 Ghina, PL 188 Ramses, and ATP 732 Caracal well re-entry (100% WI)

The company is in the process of finalizing its reinstatement plans for its working interest PLs near ATP 934. While not currently producing, all PLs have existing wells indicating log pay, drill stem test results and/or gas production from the Permian Toolachee formation, as previously disclosed. Bengal has identified up to five wells to be tested and re-completed for production in its first phase of development.

This program is expected to include the following development activities:

  • Recommissioning of the 26km pipeline, which the company has 100 per cent working interest in, to tie the previously producing Wareena liquids-rich gas wells into a nearby compression station accessing the Eastern Australia local and export markets;
  • Twin drilling of the existing Karnak well showed a liquids-rich gas pay zone in the Permian Toolachee formation. Bengal expects that with the application of the advanced underbalanced drilling techniques, which are now commonplace in the Cooper Basin, a successful new well could be immediately tied into nearby gathering infrastructure for commercial production;
  • Re-entry and stimulation of the oil-bearing Wyandra formation in the Caracal well on ATP 732. The Caracal well was drilled in 2012, at which time a core was cut over the Wyandra section indicating the presence of free-flowing 52-degree crude oil. The well was cased and during its completion operations, a small amount of oil and filtrate water was recovered. Renewed technical evaluation, combined with a cost-effective early production system, has led Bengal’s management to advance the priority of this project. The stimulation program is being designed to enhance near wellbore permeability and porosity. If successful, produced oil can be sold to the nearby Inland Oil Refinery at Eromanga;
  • Work-over of the Ramses well which demonstrated both a Permian gas discovery and Jurassic oil-zone completion in a cased well, which recovered 588 bbls/d of light crude oil, based on a 105-minute DST. No transient pressure analysis was carried out. Because of the relatively short duration of the DST, these results should be considered preliminary, until a longer duration well test is carried out to confirm deliverability. Upon successful completion of a longer duration test, this well is expected to be immediately equipped for production and the produced oil sold into the regional market; and
  • Work-over of the Ghina well to evaluate the previous Permian liquids-rich gas discovery and assess the economics of tie-in and field recovery and support a follow-up drilling campaign.

Exploration program

Legbar Farm-in Well – ATP 934

  • The location for the previously announced Santos farm-in well (the “Legbar Well“) has been finalized and drilling is expected to commence in October 2021.
  • The Legbar Well, which is free carried to Bengal, is targeting liquids-rich natural gas from the Permian Toolachee and Patchawara formations.
  • The Legbar Well is situated alongside a productive trend as demonstrated by competitor successes immediately to the south and the west.
  • Access to production infrastructure will be available nearby the projected location of the Legbar Well.
  • Santos QNT Pty Ltd will earn a 60 per cent interest in the Legbar Well and a 60% interest in approximately 103,000 acres (net 61,800 acres) in ATP 934.
  • Upon successful drilling of the LegBar Well, Bengal will pay its 40 per cent share of the pipeline connection costs.
  • Additional undrilled structures have been identified with 2D seismic in close proximity to the Legbar location, as well as access to production infrastructure.

Chef Well – ATP 752

  • The Chef location has been identified with modern 3D seismic as a four-way dip closed structure with the primary zone of interest being the Jurassic Birkhead-Hutton formations and with secondary potential in the Doonmulla and Murta zones.
  • The Chef location lies immediately north of the Cook oil field producing from the Birkhead-Hutton formations.
  • The current plan is for the Chef well, in which Bengal has a 30.35 per cent working interest, to be drilled in December 2021.
  • Upon completion, Bengal anticipates that the Chef well will be pipeline connected into the Cuisinier pool production infrastructure to the west.

Chayan Chakrabarty, President and Chief Executive Officer of Bengal, commented on the programs.

“Our 2021 programs are the result of over three years of asset acquisitions, permitting and planning. Bengal’s team has worked closely with the regulatory authorities in Queensland, as well as select service contractors in preparation for this focused, low-risk, high-impact program. It is expected that the program will allow Bengal to transition into a Cooper Basin operator through 100 per cent owned development​ of assets with efficient operations and stakeholder engagement​.

We believe that all of our programs are ready for immediate commercialization, and we have engaged the right team and service providers to lead the essential work-over and turn-key operations. We anticipate that the exploration component of the program will brings higher reward opportunities, as well as running room for further activity with a seasoned Cooper basin operator. We are proud to be able to partner with local contractors and support the communities in which we operate.”

Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia.

Bengal Energy Ltd. (BNG) opened trading at C$0.085 per share.

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