Business
Bengal Energy Announces Agreement to Increase Interest in the Cuisinier Oil Field and Related Permit ATP 752P to 30.357%
CALGARY , June 26, 2013 /CNW/ - Bengal Energy (TSX: BNG) (" Bengal ", or the " Company...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\nCALGARY, June 26, 2013 /CNW/ - Bengal Energy (TSX: BNG) (\"Bengal\", or the \"Company\") is pleased to announce that it has exercised its pre-emptive right to\n purchase an additional 5.357% interest in the Cuisinier Oil Field and\n the Authority to Prospect (\"ATP\") 752P (the \"Acquisition\") in the\n Cooper-Eromanga Basin in Queensland, Australia, bringing the Company's\n total ownership to 30.357%.  The Cuisinier Oil Field has 13 successful\n light oil wells drilled to date, is connected by pipeline to the Cook\n Processing Facility, and currently generates production of\n approximately 375 barrels of oil per day (\"b/d\") net to Bengal.  After\n giving effect to the Acquisition, this production is expected to\n increase by more than 20%, to approximately 455 b/d. Over the coming\n months, the Company will be well positioned to further benefit from\n additional volumes coming on-stream once the five successful wells\n drilled in the 2013 campaign are tied in, which is anticipated to occur\n in September of this year.\n\n\nBengal's purchase price for the additional interest is expected to be\n approximately AUD $7.6 million (CAD $7.4 million) and is subject to\n closing costs and normal closing adjustments from the effective date of\n March 15, 2013.  Bengal anticipates securing predominantly debt\n financing for the Acquisition and will provide further information once\n additional details are available with respect thereto.\n\n\nBengal is exercising its pre-emptive right pursuant to the proposed sale\n by one of the joint venture partners of a 15% interest in ATP 752P for\n AUD $20 million. The Acquisition will be effected by way of an asset\n sale agreement, which the Company expects to enter into in July 2013, and will be subject to receipt of necessary governmental approvals\n in Australia.\n\n\n\"Increasing our ownership in Cuisinier is a very positive development\n for Bengal,\" said Chayan Chakrabarty, Bengal's President & Chief\n Executive Officer.  \"As a result of this Acquisition, net production to\n Bengal will increase by more than 20%, and coupled with the area's\n attractive netbacks, enables us to generate higher incremental cash\n flows. Further, the Company will be positioned to realize a greater\n proportion of future booked reserves, which is expected to enhance the\n Company...