Jun. 15, 2011 (Canada NewsWire Group) --
CALGARY, AB, June 15, 2011 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to give an update on current production and completion operations at Cuisinier.
The initial Cuisinier discovery well ("Cuisinier 1") began production in May 2010 and has cumulatively produced over 63,000 barrels of oil to April 30, 2011 with no appreciable water-cut. The well's daily productive capability continues to be in excess of 350 barrels of oil per day (bopd) (88 bopd net to Bengal). The well has been produced intermittently over the last few months due to logistical problems related to severe flooding earlier this year in central Australia. The operator is investigating additional tank storage options to improve oil sales and mitigate downtime at Cuisinier 1. Improvements are being seen. The operator reported that 10,481 barrels of oil were delivered for sale in April, averaging 340 bopd on a calendar-day basis (net 85 bopd) over the month.
Two appraisal development wells on the Cuisinier discovery ("Cuisinier 2") and ("Cuisinier 3") and an exploration well ("Barta North 1") were cased as potential oil wells over the past six months. Cuisinier 2 was drilled approximately 450 metres northeast of Cuisinier 1 and encountered three separate pay sands in the Murta sandstone to a depth 28 m below the base of perforations in Cuisinier 1. Swab test results from the lowest Murta pay sand recovered 95 barrels of oil over approximately a six hour period. The two upper Murta zones at Cuisinier 2 including the equivalent zone to the producing pay sand at Cuisinier 1, may require reservoir stimulation before the upper sands can produce oil. A complete analysis of test results from the wells is expected from the operator.
Cuisinier 3 was drilled approximately 700 m southwest from Cuisinier 1. Cuisinier 3 showed apparent log pay in two Murta zone sandstones. Early swab test results of the upper Murta pay sand, the equivalent zone to the producing Murta pay sand at Cuisinier 1, recovered 37 barrels of oil over an approximately five hour swab period with mechanical difficulties preventing a full evaluation. The swab results require further analysis; however, the upper Murta zone is expected to produce clean oil. The lower zone in this well tested non-commercial rates and will remain suspended.
Both Cuisinier appraisal wells will be placed on pump with oil pipelined to the Cuisinier 1 lease and an expanded tank system. The ultimate productive capability of each well will be established on pump. The results to date from these Cuisinier appraisal wells indicate that at least a 19 m gross oil column exists within the upper Murta oil zone originally found in Cuisinier 1. Additionally, the lower Murta oil pay, as demonstrated by Cuisinier 2, possibly extends as much as 21 m deeper. Further analysis of the completion results, additional production from the wells and further step out and appraisal drilling are required to determine and more fully understand the extent of the newly discovered Cuisinier oil pool.
Barta North 1 was drilled approximately four kilometres southwest of Cuisinier 1 on a separate structure. The well was perforated over six metres in the upper Murta zone, the equivalent zone to the producing Murta pay sand at Cuisinier 1. Swab testing of this zone recovered 58 barrels of oil over approximately nine hours. The well has been completed as a pumping oil well and the operator is reviewing facilities connection options, one of which may be a pipeline from Barta North 1 to the Cuisinier 1 tank system. Perforations were also made to a deeper, Birkhead Formation sandstone in Barta North 1 which recovered oil at low rates. Although the operator deemed the productivity of this Birkhead oil reservoir to be sub-economic at this time, the result indicates that additional oil potential may exist in the northern part of the Barta sub-block.
To fully understand the extent of both of these new oil pool discoveries, further step out and appraisal drilling is required. A multi-well drilling program and 3D seismic survey north of the Cuisinier oil pool are in the planning stage and will be implemented in order to pursue potential exploration leads and appraisal opportunities. Bengal holds a 25% interest in the Cuisinier oil discovery, the Barta North oil discovery and the greater 360,000 acre Barta sub-block portion of exploration permit ATP 752P.
Oil production from the new wells is expected during the third quarter of calendar year 2011. The Company will continue to update investors as additional information is received from the operator.
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 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 analysis of the Cuisinier 2 and 3 and Barta North 1 Wells and the results thereof; Bengal's future drilling and exploration programs; storage and transportation of production; and Bengal's growth strategy, testing and analysis of the Cuisinier 2 and 3 and the Barta North 1 wells The forward looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Bengal's actual financial results, performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to those material risks discussed in Bengal's Annual Information Form under the heading "Risk Factors" and in Bengal's annual MD&A under the heading "Risk Factors". The forward-looking statements contained in this news release speak only as of the date hereof 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.
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