Bengal Energy Announces Results for the Year Ended March 31, 2009



    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.





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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