Business
Bengal Energy Provides Business Update Including Progress in Award of Large Block in India
CALGARY, Sept. 15 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today provide...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\n\nCALGARY, Sept. 15 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the\n"Company") today provided an update regarding its activities in India,\nAustralia and Canada.\n\n\nIndia's Directorate General of Hydrocarbons has recommended to the Indian\ngovernment the official award of block CY-ONN-2005/1 (the "Block") in the\nCauvery Basin to Bengal and its partners. The official award of the Block is\nexpected shortly and the formal government signing ceremony is expected to\ntake place by the end of November. The Block is a 233,761 acre land block\nlocated in a Category 1 proven producing basin in southeast India. Bengal has\na 30% interest in the Block and the operator of the Block, GAIL (India)\nLimited ("GAIL"), holds a 40% interest. Gujarat State Petroleum Corporation\n("GSPC") holds the remaining 30% interest.\n\n\n"The award of the Cauvery block in India is very important to Bengal\nbecause of its large potential resources, which are over four times all of\nBengal's other resources combined, and also because of the strong local\npartners that we will work with in its exploration and development," said\nBradley Johnson, Chief Executive Officer of Bengal. "GAIL and GPSC have\nsignificant oil and gas interests in India and other countries including\nChina, Egypt, Oman, Yemen and Australia. We believe we can add value for them\nnot only in the Block but also in their other operations by applying our\nstrong technical and operational experience and our access to Canadian\npractices and technologies."\n\n\nIn Australia, the first well in the Santos operated Joint Venture,\nlocated on the 631,093 acre Barta Block, has been perforated and flow tested.\nThe well will be completed with a beam pumping unit and will be tied into\nSantos's Cook oilfield battery, approximately 6 kilometers to the west. Oil\nflowed to surface from a 9 meter perforated interval in the Murta sandstone.\nEarly estimates suggest that the well will be capable of producing between\n200 and 250 barrels of light sweet oil per day. Production is expected to be\nonline in Q1 2009 after construction of the pipeline and completion of\nprocessing agreements. The partners believe there are a number of follow-up\ndrilling opportunities and are proposing a 150 to 170 square kilometer 3D\nseismic ...