Nov. 26, 2010 (Canada NewsWire Group) --
CALGARY, Nov. 26 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to report that the second well in its 2010 onshore Australia drilling program, the Cuisinier 2 appraisal well (the "Cuisinier 2 Well"), is being cased to 2,037 meters total depth by the operator (Santos) as a potential Murta zone oil well.
The Cuisinier 2 Well is located on the Barta sub-block (the "Barta Block") of the Cooper Basin in the State of Queensland, Australia, within Authority to Prospect ("ATP") 752P and approximately 450 meters northeast of the Company's Cuisinier 1 oil discovery. The Cuisinier 2 Well targeted the Cretaceous Murta sandstone and encountered an upper Murta zone within the same oil column as the offsetting Cuisinier 1 well. Logs indicate that a gross channel thickness of 7.5 meters was penetrated in the upper Murta with up to seven meters of effective porosity and potential net pay. The upper Murta zone was not tested and potential productivity rates will be evaluated after perforation and testing. Moderate oil shows were also seen in two additional deeper Murta sands which, based on logs, indicate additional potential for approximately seven meters of possible incremental net oil pay that if validated from testing would be below the oil water contact originally postulated at the Cuisinier 1 well. Further testing after perforation is required to verify the fluid content and potential productivity of these deeper Murta zones. Additional oil shows were seen deeper in the Cuisinier 2 Well within a thin Jurassic Birkhead sandstone, located immediately above the Hutton Formation. The Operator is considering the evaluation program, which may result in the Birkhead and Murta zones being tested during well completion operations expected to take place during the first quarter of 2011.
Bengal's working interest in the Barta Block is 25% following the drilling of the recent successful Barta North 1 well. All drilling costs up to the decision to run casing for the Cuisinier 2 Well were carried by the operator under earning terms of the farm-in agreement. The offsetting Cuisinier 1 well continues to exceed initial production estimates and continues to produce at approximately 400 barrels of oil per day (gross).
In addition, the Board of Directors of Bengal is pleased to announce that Mr. Chayan Chakrabarty, the current President of the Company, has been promoted to the position of President and Chief Executive Officer. Mr. Chakrabarty will assume his expanded role effective immediately.
Board Chairman Ian Towers said, "Chayan has demonstrated the strategic vision necessary to lead the exploration and development of Bengal's 2.2 million net acres of undeveloped land in India and Australia. He has helped Bengal put together a significant platform for growth. The Board is confident Chayan is the right person to guide the Bengal team as we continue to exploit our world-class assets."
Mr. Chakrabarty has been involved in the oil and gas industry for more than 20 years. Prior to joining Bengal in February 2008, he was the Vice President, International, with Daylight Resources Trust. Mr. Chakrabarty also held senior executive roles with Verenex Energy Inc., Ross Smith Energy Group and Golder Associates Ltd. (an international engineering consulting firm).
About Bengal
Bengal Energy Ltd. is an international junior oil and gas exploration and production company based in Calgary, Alberta. The Company is committed to growing shareholder value through international exploration, production and acquisitions. Bengal trades on the TSX under the symbol BNG. Additional information is available at www.bengalenergy.ca.
Forward-Looking Statements
This news release contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties, many of
which are beyond Bengal's control. These statements relate to future
events or our future performance. All statements other than statements
of historical fact may be forward looking statements. The projections,
estimates and beliefs contained in such forward looking statements are
based on management's estimates, opinions, and assumptions at the time
the statements were made, including assumptions relating to: the impact
of general global economic conditions in Canada, Australia, India and
in the United States, industry conditions, changes in laws and
regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced,
increased competition, the lack of availability of qualified operating
or management personnel, fluctuations in commodity prices, foreign
exchange or interest rates, stock market volatility and fluctuations in
market valuations of companies with respect to announced transactions
and the final valuations thereof, and the ability to obtain required
approvals from regulatory authorities. We believe the expectations
reflected in those forward-looking statements are reasonable but, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them
do so, what benefits that Bengal will derive from them. Forward-looking
statements include expectations related to the porosity and pay
thickness of the Cuisinier 2 Well, the testing and completion of the
Cuisinier 2 Well and the ultimate productivity of the Cuisinier 2 Well.
Bengal's actual financial and operational results, performance or
achievement in future periods could differ materially from those
expressed in, or implied by, these forward-looking statements,
including those material risks discussed in Bengal's Annual Information
Form under "Risk Factors and in Bengal's annual MD&A under "Risk
Factors". The forward-looking statements contained in the documents
incorporated by reference herein are expressly qualified by this
cautionary statement: The forward-looking statements contained in this
release speak only as of the date of this release and Bengal does not
assume any obligation to publicly update or revise them to reflect new
events or circumstances, except as may be required pursuant to
applicable securities laws.
Bengal Energy Ltd.
Chayan Chakrabarty, President and CEO
James Mott, Vice President Exploration
(403) 205-2526
Email:investor.relations@bengalenergy.ca
Website:www.bengalenergy.ca