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Bengal Energy Announces Fiscal 2021 Second Quarter Results
Calgary, Alberta--(Newsfile Corp. - November 24, 2020) -  Bengal Energy Ltd. (TSX: BNG) ...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"Bengal Energy Announces Fiscal 2021 Second Quarter ResultsCalgary, Alberta--(Newsfile Corp. - November 24, 2020) -  Bengal Energy Ltd. (TSX: BNG) (\"Bengal\" or the \"Company\") today announces its financial results for the second quarter of fiscal 2021 ended September 30, 2020.SECOND QUARTER FISCAL 2021 SUMMARY: The following is an overview of the financial and operational results during the three month period ended September 30, 2020: Financial Summary: Sales Revenue - Crude oil sales revenue was $1.3 million in the second quarter of fiscal 2021, which is 47% lower than the $2.4 million recorded in Q2 fiscal 2020. Fiscal 2021 continues to be severely impacted by low oil prices as compared to Fiscal 2020. US Brent, during the current quarter averaged $42.96 versus $61.93 for the same quarter in fiscal 2020.Hedging - During the current quarter, forward fixed-price contracts contributed $0.3 million to the company's cash flow as compared to $0.3 million for Q2 fiscal 2020. For the six months ending September fiscal 2021, the hedging program has contributed $0.8 million as compared to $0.3 million for the six months ended September fiscal 2020. The current hedging program is expected to provide $58-$59/bbl per month on 50% of Bengal share of production for the remaining calendar year.Cash from Operations - Bengal generated net cash used in operating activities ($0.2) million during Q2 fiscal 2021 compared to $0.5 million of cash from operations in Q2 fiscal 2020. The primary reason for the negative cash from operations was the low commodity price which resulted in lower sales revenue.Net Loss - Bengal reported a net loss of $0.2 million for the current quarter compared to a net income of $0.2 million in the second quarter of fiscal 2020. The primary driver for the net loss for Q2 fiscal 2021 was the weak realised oil prices, partially offset by foreign exchange gains.Bank Debt maturity extension - On September 30, 2020, Westpac Banking Corporation (\"Westpac'') agreed to extend the maturity of the Credit Facility (as defined herein) from October 30, 2020 to February 28, 2021. The company continues to work with Westpac to negotiate a longer term debt maturity for its Credit facility. Operational SummaryProduction Volumes - The Company's share of total production in the current quarter was 21,247 bbls, which is a 30% decrease f...