Bengal Energy Announces Results for the Quarter Ended June 30, 2009



    CALGARY, Aug. 13 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the
"Company") today announced its financial and operating results for the quarter
ended June 30, 2009. Highlights are as follows:

    
    -   Produced 172 barrels of oil equivalent per day (boe/d) in Australia
        and Canada and pursued world-class exploration opportunities on
        resource plays in Australia and India. Bengal has 1.5 million net
        acres of undeveloped land focused in three countries with stable
        political and favorable fiscal environments.

    -   Carried out a third-party prospective resource assessment for
        Bengal's 100%-owned Australian offshore exploration permit AC/P 47, a
        3,485 square kilometer block with significant resource potential from
        multiple high quality structures. Independent third party engineering
        firm DeGolyer and MacNaughton has determined that a best estimate
        (P50) of the unrisked prospective oil resource attributable to one
        prospect identified in the Permit is 590.4 million barrels of
        recoverable oil. AC/P 47 is approximately 150 kilometers west of the
        Vulcan Graben, an established offshore producing area. See
        disclaimers related to "Resource Estimates" below.

    -   Maintained a healthy balance sheet with working capital of
        $1.8 million on June 30, 2009 and no long-term debt.

    -   Restricted capital expenditures to $154,000 in the quarter compared
        with $1.5 million in the corresponding period of fiscal 2009. Work
        commitments over the next 12 months are estimated to be $2.0 million.

    -   Completed the acquisition of 206 square kilometers of new 3D seismic
        data on exploration license ATP 752P (the Wompi Block) within the
        Cooper/Eromanga Basin of Queensland, Australia. The operator acquired
        the seismic data at no cost to Bengal. Bengal is carried for the
        costs of the initial three exploration wells and has the option to
        fund 60% of the fourth exploration well in order to retain its 30%
        working interest in the block. Drilling is expected to begin in the
        first quarter of calendar year 2010.

    -   Finalizing production lease, equipment lease and crude oil marketing
        and transportation agreements in order to begin initial production
        from the recent Cuisinier oil discovery on the Barta block in
        Australia's Cooper Basin. Production from the well is expected to
        come on stream in September 2009 at 200 to 250 barrels of oil per day
        ("bopd") resulting in approximately 30 to 35 bopd net to Bengal.

    -   The Barta block 3D seismic program (103 square kilometers) was
        acquired in April at no cost to Bengal and is undergoing standard
        seismic processing with results expected in October. The new 3D
        seismic and production results are anticipated to enable the joint
        venture to define an appropriate appraisal and development plan in
        November 2009.

    -   Bengal is currently evaluating select exploration blocks in India
        with a view to making bid decisions. The exploration blocks are
        available as part of the eighth round of New Exploration Licensing
        Policy (NELP-VIII) in which 70 exploration blocks covering
        163,535 square kilometers are being offered for bidding. The bid
        closing date is October 12, 2009.

    -   The Company continues to review strategic merger or acquisition
        opportunities to enhance its portfolio of assets and projects.

    Financial and Operating Highlights

    -------------------------------------------------------------------------
    $000s except per share, volumes and           Three Months Ended
     and netback amounts                 ------------------------------------
                                          06/30/09     06/30/08     03/31/09
    -------------------------------------------------------------------------
    Revenue
      Natural gas                        $     219    $     761    $     357
      Natural gas liquids                       56          205           62
      Oil                                      299          986          248
    -------------------------------------------------------------------------
      Total                                    574        1,952          667
    -------------------------------------------------------------------------
    Royalties                                   65          356          143
      % of revenue                            11.3         18.3         21.4
    -------------------------------------------------------------------------
    Operating & transportation                 246          278          283
    -------------------------------------------------------------------------
    Netback(1)                                 263        1,318          241
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flow from (used in) operations:      (628)         607          (85)
      Per share ($) (basic & diluted)        (0.03)        0.03        (0.00)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Funds from (used in) operations:(1)       (298)         860          (92)
      Per share ($) (basic & diluted)        (0.02)        0.05        (0.01)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net (loss):                               (865)        (351)        (839)
      Per share ($) (basic & diluted)        (0.05)       (0.02)       (0.05)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Capital expenditures                 $     154    $   1,532    $     254
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Volumes
      Natural gas (mcf/d)                      684          734          712
      Natural gas liquids (boe/d)               15           23           19
      Oil (bbl/d)                               43           73           44
    -------------------------------------------------------------------------
      Total (boe/d @ 6:1)                   172          218          182
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Netback ($/boe)
      Revenue                            $   36.54    $   98.23    $   40.81
      Royalties                               4.11        17.93         8.72
      Operating & transportation             15.64        13.97        17.23
    -------------------------------------------------------------------------
      Total                              $   16.78    $   66.33    $   14.86
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) "Netback" and "funds from (used in) operations" are non-GAAP
        measures. See Non-GAAP Measures below.
    

    Bengal's Quarterly Management's Discussion and Analysis and Consolidated
Financial Statements can be viewed at www.bengalenergy.ca or on SEDAR at
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, Australia 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. Forward-looking statements include expectations
related to drilling of the Wompi wells, start-up date and initial production
volumes of the Cuisinier well and whether the Barta block seismic will lead to
a development plan. 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 (used in) 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.

    Resource Estimates

    DeGolyer and MacNaughton's resource estimates were prepared in accordance
with the requirements of Canadian National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities ("NI 51-101"). Gross Prospective
Resources are those quantities of petroleum that are estimated, as of March
31, 2009, to be potentially recoverable from undiscovered accumulations by
application of future development projects. There is no certainty that any
portion of the prospective resources will be discovered. If discovered, there
is no certainty that it will be commercially viable to produce any portion of
the prospective resources. Terms in this news release related to resource
classifications are based on the definitions and guidelines in the Canadian
Oil and Gas Evaluation Handbook. The Best (Median) Estimate is considered to
be the best estimate of the quantity that will actually be recovered. This
term reflects a P50 confidence level where the successful discovery will have
a 50% chance of being more than this resource estimate.





For further information:

For further information: Bengal Energy Ltd., Bradley Johnson, Chief
Executive Officer, Chayan Chakrabarty, President, (403) 205-2526, Email:
investor.relations@bengalenergy.ca, Website: www.bengalenergy.ca

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