Jun. 14, 2011 (Canada NewsWire Group) --
CALGARY, June 14, 2011 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today announced its financial and operating results for the year ended March 31, 2011.
Since the start of the fiscal year ending March 31, 2011, Bengal has raised $46.5 million (gross) through three fully-subscribed share offerings, added international expertise to its board of directors, brought one oil discovery on production, drilled three additional wells and continued exploration efforts on its 2.2 million net acres of undeveloped land in Australia and India.
Bengal is now well capitalized to accelerate growth through drilling and exploration efforts in three core areas: low-risk development drilling in Australia's Cooper Basin, high-impact drilling offshore Australia on Bengal's 10% permit AC/P24, exploration on the Company's 100% block AC/P 47 in the Australian Timor Sea, and onshore and offshore exploration on two blocks in India's Cauvery Basin. All three areas offer large land positions in proven, producing basins with strong regulatory frameworks and Brent pricing for crude oil. Bengal operates 89% of its total net acreage.
Recent Highlights:
-
Raised $12 million on September 29, 2010, $9 million on January 28, 2011
and $25.5 million on April 14, 2011, through three equity financings,
for total gross proceeds of $46.5 million. The proceeds will help
accelerate plans for development of the Company's oil and gas
properties.
-
Commenced production in May 2010 from the Cuisinier oil discovery well
("Cuisinier 1") in Australia located on the Barta sub-block ("the Barta
Block") of the Cooper Basin on Authority to Prospect ATP 752P. The well
continues to produce clean oil at 52 degrees API. Although the well is
capable of producing more than 350 barrels per producing day (88 net),
production has been restricted over the last few months due to
logistical problems related to severe flooding earlier this year in
Queensland, Australia. The operator is investigating options to improve
oil sales and thus reduce down times.
-
Drilled three additional wells on the 360,000 acre Barta Block in fiscal
2011, including two wells offsetting Cuisinier 1 and one exploration
well four kilometres southwest of Cuisinier 1 (the "Barta North 1")
achieving a 100% drilling success rate. Each new well has been cased as
a potential oil well. Barta North 1 encountered oil pay in the
Cretaceous Murta Sandstone. This suggests the existence of a wide
fairway for Murta oil prospects offsetting the Cuisinier 1 oil
discovery. Bengal expects to complete and test the wells in mid-2011.
Bengal now has a 25% working interest in the Barta Block.
-
Received the Ministerial Grant of Authority to Prospect 732P ("ATP
732P") from the Department of Natural Resources and Mines in
Queensland, Australia with an effective date of April 1, 2011. ATP 732P
is in Australia's Cooper/Eromanga Basin. Bengal has a 100% working
interest and operatorship of ATP 732P, a lightly explored permit
measuring 654,321 acres. Only eight exploration wells have been drilled
on the permit, three of which had hydrocarbon shows. The permit is
adjacent to blocks with producing oil and gas fields from numerous
depths. Seismic is planned for the fourth quarter of this year and the
Company plans to undertake a multi-well drilling program commencing in
early 2012.
- Obtained an independent Resource Evaluation Report of ATP 732P from Ryder Scott Company-Canada with an effective date of February 1, 2011. The results were summarized in a news release on March 1, 2011. The Company believes the opportunities identified on ATP 732P support an accelerated exploration program.
Financial and Operating Summary
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| $000s except per share, volumes and netback amounts | 03/31/11 | 03/31/10 | 12/31/10 | 03/31/11 | 03/31/10 | |||||||||||
| Revenue | ||||||||||||||||
|
Natural gas Natural gas liquids Oil |
|
$ |
125 17 549 |
|
$ |
206 22 52 |
|
$ |
112 12 306 |
|
$ |
488 67 1,298 |
|
$ |
830 163 779 |
|
| Total | 691 | 280 | 430 | 1,853 | 1,772 | |||||||||||
| Royalties | 67 | 39 | 46 | 181 | 231 | |||||||||||
| % of revenue | 9.7 | 13.9 | 10.5 | 9.8 | 13.0 | |||||||||||
| Operating & transportation | 295 | 116 | 189 | 883 | 756 | |||||||||||
| Netback(1) | 328 | 125 | 195 | 788 | 785 | |||||||||||
| Cash flow used in operations: | (807) | (493) | (556) | (2,393) | (1,650) | |||||||||||
| Per share ($) (basic & diluted) | (0.02) | (0.03) | (0.02) | (0.09) | (0.09) | |||||||||||
| Funds used in operations(2): | (751) | (626) | (683) | (2,452) | (1,566) | |||||||||||
| Per share ($) (basic & diluted) | (0.02) | (0.03) | (0.02) | (0.10) | (0.08) | |||||||||||
| Net loss: | (1,188) | (1,396) | (1,031) | (3,654) | (4,991) | |||||||||||
| Per share ($) (basic & diluted) | (0.03) | (0.08) | (0.03) | (0.14) | (0.27) | |||||||||||
| Capital expenditures | $ | 1,879 | $ | 553 | $ | 1,797 | $ | 3,943 | $ | 1,401 | ||||||
| Property disposition proceeds | $ | − | $ | − | $ | - | $ | − | $ | 2,111 | ||||||
| Volumes | ||||||||||||||||
|
Natural gas (mcf/d) Natural gas liquids (boe/d) Oil (bbl/d) |
|
|
348 3 56 |
|
|
377 5 7 |
|
|
327 3 36 |
|
|
354 3 39 |
|
|
568 11 28 |
|
| Total (boe/d @ 6:1) | 117 | 75 | 94 | 101 | 134 | |||||||||||
| Netback(1) ($/boe) | ||||||||||||||||
|
Revenue Royalties Operating & transportation |
|
$ |
65.86 6.42 28.13 |
|
$ |
41.65 5.79 17.19 |
|
$ |
49.93 5.25 21.99 |
|
$ |
50.21 4.91 23.93 |
|
$ |
36.44 4.74 15.53 |
|
| Total | $ | 31.31 | $ | 18.67 | $ | 22.69 | $ | 21.37 | $ | 16.17 | ||||||
(1) Netback is a non-GAAP measure. 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.
(2) Funds from operations is a non-GAAP measure. The comparable GAAP
measure is cash flow from operations. A reconciliation of the two
measures can be found in Bengal's Annual MD&A.
Bengal believes its recent equity financings and drilling success set the stage for near-term operating income and long-term growth. Exploration success from high-impact plays at offshore permit AC/P 24 and onshore permit ATP 732P in Australia over 2011 and 2012 should create additional momentum. Long-term plays in India and in the Timor Sea could produce results as early as 2013. Bengal will continue to evaluate accretive production acquisitions and corporate transactions within and proximate to the Company's core areas.
Bengal's Annual Management's Discussion and Analysis and Annual Consolidated Financial Statements 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 with assets in Australia and India. 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
forward-looking statements contained herein include, without
limitation, statements regarding: Bengal's future development and
exploration plans and strategy and results thereof; use of proceeds
from the equity financings; and the completion of future wells. 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 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.
Bengal Energy Ltd.
Chayan Chakrabarty, President and CEO
Bryan Goudie, Chief Financial Officer
(403) 205-2526
Email: investor.relations@bengalenergy.ca
Website: www.bengalenergy.ca