CALGARY, June 24 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today announced its financial and operating results for the year ended March 31, 2009. Highlights of the Company's activities in Canada, India and Australia over the year are as follows:
- Awarded 100% of Exploration Permit AC/P47 ("AC/P47" or the "Permit"),
a large Australian offshore block with significant resource potential
from multiple high quality structures.
- Awarded a 30% interest in CY-ONN-2005/1, a 233,800 acre block in
India's proven Cauvery Basin.
- Partnered with national oil companies in India, including GAIL
(India) Limited (40%, operator) and Gujarat State Petroleum
Corporation (GSPC).
- More than doubled international acreage to 1.5 million net acres.
- Achieved annual production of 198 barrels of oil equivalent per day.
- Replaced 267% of production based on proved plus probable reserves as
evaluated by DeGolyer and MacNaughton Canada Ltd. as of March 31,
2009.
- Increased proved plus probable reserves 30%.
- Achieved annual funds from operations of $1,093,000. Funds from
operations is a non-GAAP measure. See Non-GAAP Measures below. The
comparable GAAP measure is cash flow from operations. Cash flow from
operations for the year ended March 31, 2009 was $1,773,000.
Financial and Operating Highlights
-------------------------------------------------------------------------
$000s except per share, Twelve Months
volumes and netback Three Months Ended Ended
amounts --------------------------------------------------
03/31/09 03/31/08 12/31/08 03/31/09 03/31/08
-------------------------------------------------------------------------
Revenue
Natural gas $ 357 $ 394 $ 516 $ 2,110 $ 978
Natural gas liquids 62 89 67 473 373
Oil 248 776 242 2,343 2,223
-------------------------------------------------------------------------
Total 667 1,259 825 4,926 3,574
-------------------------------------------------------------------------
Royalties 143 192 125 882 491
% of revenue 21.4 15.3 15.2 18.0 13.7
-------------------------------------------------------------------------
Operating &
transportation 283 194 211 1,145 587
-------------------------------------------------------------------------
Netback(1) 241 873 489 2,899 2,496
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash flow from
operations: (85) (527) 303 1,773 (486)
Per share ($)
(basic & diluted) (0.00) (0.03) 0.02 0.10 (0.03)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Funds (loss) from
operations(1): (92) (226) (29) 1,093 (193)
Per share ($)
(basic & diluted) (0.01) (0.01) (0.00) 0.06 (0.01)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net (loss): (839) (632) (6,196) (8,198) (3,645)
Per share ($)
(basic & diluted) (0.05) (0.04) (0.34) (0.45) (0.23)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Capital expenditures $ 254 $ 575 $ 1,096 $ 6,724 $ 1,583
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Volumes
Natural gas (mcf/d) 712 542 842 724 385
Natural gas liquids
(boe/d) 19 13 19 19 15
Oil (bbl/d) 44 80 46 58 64
-------------------------------------------------------------------------
Total (boe/d at 6:1) 182 184 205 198 144
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Netback ($/boe)
Revenue $ 40.81 $ 75.35 $ 43.69 $ 68.20 $ 68.01
Royalties 8.72 11.50 6.63 12.21 9.35
Operating &
transportation 17.23 11.60 11.16 15.84 11.16
-------------------------------------------------------------------------
Total $ 14.86 $ 52.25 $ 25.90 $ 40.15 $ 47.50
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) "Netback" and "funds from operations" are non-GAAP measures. See
Non-GAAP Measures below.
Bengal's Annual Management's Discussion and Analysis, Annual Consolidated Financial Statements and Annual Information Form can be viewed at www.bengalenergy.ca or www.sedar.com.
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 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, including the amount of proceeds, that Bengal will derive therefrom. Bengal's actual financial 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 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 require pursuant to applicable securities laws.
Barrels of Oil Equivalent
When converting natural gas to equivalent barrels of oil, Bengal uses the widely recognized standard of 6 thousand cubic feet (Mcf) to one barrel of oil (boe). However, a boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Non-GAAP Measures
Netback and funds from operations are non-GAAP measures. Netback per boe is calculated by dividing the revenue and costs in total for the company by the total production of the company measured in boe. Management considers netback to be an important measure as it demonstrates profitability on a unit of production basis. Funds from operations is calculated as cash flow from operations before deducting changes in non-cash working capital. Management believes funds from operations is a useful supplemental measure as it demonstrates the ability to generate cash necessary to repay debt or fund growth through capital investment before changes in non-cash working capital balances. Investors are cautioned that funds from operations should not be construed as an alternative to cash flow from operations determined in accordance with GAAP.