CALGARY, March 10 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today announced that it has been awarded a 100% working interest in Exploration Permit AC/P47 ("AC/P47" or the "Permit"), a 3,485 square kilometer offshore block located in the Timor Sea on the Northwest Shelf of Australia. AC/P47 has been penetrated by only one well, drilled in 1973 downdip and off-structure of what appears to be a large area of structural closure encompassing high quality Triassic reservoir rocks. Bengal estimates this structure to be up to 90 square kilometers in area and 150 meters thick. As well, additional leads and prospects are evident on the Permit, including another structural closure of similar size. The Vulcan Graben to the east is an established producing area where the existence of oil-prone hydrocarbon-source beds is believed responsible for the light oil accumulations in this part of the Northwest Shelf. Based on mapping from a grid of existing seismic data, Bengal believes that there is a reasonable probability of equivalent light oil source strata extending to the flanks of AC/P47. Located on the Ashmore Platform, most of the Permit appears to have water depth of less than 400 meters, varying between 50 meters and 900 meters which is within conventional water drilling depths in this area.
"The award of permit AC/P47 signifies another important milestone in Bengal's growth and demonstrates that the new technical efforts undertaken by the Company for the internal generation of leads and prospects are now bearing valuable results," said Bradley Johnson, Chairman and CEO of Bengal. "Through the middle of last year, we reviewed 17 offshore blocks put on offer by the Australian Government and elected to focus on this block. AC/P47 is located approximately 150 kilometers west of the productive Vulcan Graben where our AC/P24 offshore permit, including the Katandra light oil discovery, is situated. We want to emphasize that Bengal has acquired the Permit at 100% Working Interest to enable the Company to carefully manage its technical plans and expenditures at its own discretion, in the interests of shareholders."
The Permit will have an initial six year term, divided into two three-year phases. The first year of the program involves reprocessing of 985 square kilometers of two-dimensional marine seismic data. In years two and three, Bengal has committed to acquire and process a 750 square kilometer three-dimensional seismic survey. The commitments in this initial three-year phase are estimated to total AU$11 million. After the first three-year phase, Bengal has the option of either relinquishing the Permit or committing on a year-by-year basis to the subsequent three-year phase of the work program. This second phase has an estimated cost of AU$28 million and involves planning, drilling and evaluating one offshore exploration well with a depth of approximately 2,600 meters. Bengal will prudently manage costs throughout the program and will consider bringing in one or more partners as warranted.
The Ashmore Reef National Nature Reserve is located approximately 33 kilometers south of AC/P47. Accordingly, a high level of environmental scrutiny is expected regarding petroleum industry activity in the area. The Company does not presently anticipate disruptions with regard to its seismic acquisition plans. In the event of development of an oil discovery, Bengal will undertake careful and diligent measures to meet all regulations designed to ensure protection of the environment.
This press release featuring a map of AC/P47 and the surrounding area is available at www.bengalenergy.ca.
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.
Disclaimers
This press release contains certain forward-looking statements including estimates of the description of the Permit and probability of equivalent light oil source strata, forecasts respecting the timing of operations and ability to do the seismic that involve substantial known and unknown risks and uncertainties, many of which are beyond Bengal's control, including: the impact of general global economic conditions in Canada and in Australia, 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, timing of operations, ability to carry out operations as planned, changes in capital commitments, ability to obtain financing, ability to find appropriate partners, and the ability to obtain required approvals from regulatory authorities. Bengal's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, 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. With respect to forward-looking statements made in this press release, Bengal has made assumptions regarding among other things, estimates of capital commitments, ability to generate future cash flows, access to credit facilities and capital markets or partners to meet capital commitments and future prices for crude oil and natural gas. Except as required by law, Bengal disclaims any intention and assumes no obligation to update any forward-looking information whether as a result of new information, future events or otherwise.
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