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Bengal Energy announces commissioning of the Cuisinier to Cook pipeline and Production Update from Cuisinier Oil Wells in Cooper Basin, Australia
CALGARY , June 7, 2013 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\nCALGARY, June 7, 2013 /CNW/ - Bengal Energy Ltd. (TSX: BNG) (\"Bengal\" or the \"Company\") today announces that the Cuisinier to Cook\n liquids pipeline located on the Barta sub-block (\"Barta Block\") of\n Authority to Prospect (\"ATP\") 752P in the Cooper-Eromanga Basin in\n Queensland, has now been commissioned and production from all eight\n Cuisinier oil wells has now commenced.  Bengal has a 25% net interest\n in the 360,000 acre Barta Block.  This is an important development for\n Bengal, because it enables production from the previously drilled 8\n Cuisinier wells to be delivered to sales points through a pipeline,\n rather than trucking.  As a result of this pipeline connectivity,\n volatility in production volumes can be reduced, with opportunities to\n potentially enhance netbacks. For the last fiscal year ending March 31,\n 2013 Bengal's field netback on this high quality Cuisinier production\n was approximately CAD$70 per barrel.\n\n\nUpon confirming the pipeline commissioning, the Operator also provided\n updated production guidance to its JV Partners of a combined oil\n production from the eight wells during the startup phase of 1400-1500\n barrels of oil per day (\"bopd\") gross (350 to 375 bopd net to Bengal).\n  Although this represents an increase of approximately 250 bopd prior\n to commissioning, this updated production guidance will result in\n Bengal realizing calendar Q2 exit production volumes in the 350-375\n bopd range compared to the 500+ bopd previously forecast.  The Operator\n also indicated that further optimization of the system may be available\n which could potentially add incremental barrels.  For reference, the\n gross field production was approximately 1150 bopd in the month of May,\n 2013. \n\n\nCompletion and tie in work for the oil wells drilled during the 2013\n Cuisinier appraisal drilling campaign is expected to commence in July\n 2013 and should result in further production volume additions by the\n end of the third quarter of this calendar year.  Bengal will continue\n to work closely with the Operator to understand the performance of all\n wells drilled in Cuisinier, to ensure forecast production numbers are\n as accurate as possible, and will provide further guidance regarding\n year end exit production as information becomes available...