CALGARY, June 8 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce that production has commenced from the Company's Cuisinier-1 oil discovery in Australia's onshore Cooper Basin. The well, drilled under the ATP 752P staged farm-in agreement, is producing at an initial rate of approximately 340 barrels of 52 degree API oil per day. The well has been completed as a beam pump oil producer with all oil being trucked to the Jackson Oil Field Production Facility.
The producing interval is the Murta Sandstone, which is well developed over the 12-metre interval from 1,622 to 1,634 meters. Cuisinier-1 is located approximately six kilometers west of the Santos operated Cook Oil Field in southwest Queensland, near the South Australian border.
Bengal has a 14.26% interest in the 631,000 acre Barta Block of ATP 752P and the Cuisinier-1 well by way of its wholly-owned subsidiary, Avery Resources (Australia) Pty Ltd., and intends to increase its interest in the lands and discovery to 25% following completion of the Phase 2 Farm-in Work. The Phase 2 work requires Bengal to contribute 55% of the drilling cost of the next earning well. Bengal is fully carried on up to two additional future exploration wells in ATP 752P.
"We're pleased not only with the success of the Cuisinier-1 well in the ATP 752P farm-in program, but also with the potential of our acreage in multiple geological zones on this block," commented Bradley Johnson, Chairman and CEO of Bengal.
Cuisinier-1 is the first well drilled on the Cuisinier structure. The Cuisinier structure is interpreted from 3D seismic data to be one of several culminations in the area. Future appraisal drilling is required to determine the size of the structure and the extent of the reservoir.
The structure has the potential to host oil in additional reservoirs. The adjacent Cook Oil Field produces oil from the prolific Hutton reservoir. Cuisinier-1 also had oil shows in the Birkhead and Triassic targets. Results in the Cuisinier-Cook area show that significant oil accumulations can be found in different reservoirs in this region.
Bengal has interests in five permit areas in the Cooper Basin. Upon Native Title resolution on ATP 934A and closing of the previously announced purchase of a 654,000 acre block, Bengal will operate over 50% of 1.9 million gross acres in this proven producing basin.
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in India and Australia. 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
This news release contains certain statements which constitute forward-looking statements or information, including oil production rates, granting of petroleum exploration licenses, drilling plans, capital expenditure requirements, and the approximate size and nature of seismically defined features. Although the Company believes the expectations reflected in its forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The Company has provided these forward-looking statements or information in reliance on certain assumptions that it believes are reasonable at this time, including assumptions about the timing and execution of capital plans for ATP 752P where Bengal is not the operator. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, delays in obtaining approvals and ability to meet work commitments. Additional risks include Bengal's ability to meet the capital expenditures, the estimated size of any seismic features, whether additional geosciences work will progress to defining drillable locations and the possible prospectivity of the Company's acreage. The Company assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by securities laws. Additional information identifying risks and uncertainties is contained in filings of the Company with Canadian securities regulators, which are available under the Company's profile at www.sedar.com.
SOURCE Bengal Energy Ltd.
For further information: For further information: Bengal Energy Ltd., Bradley Johnson, Chief Executive Officer, Chayan Chakrabarty, President, (403) 205-2526, Email: firstname.lastname@example.org, Website: www.bengalenergy.ca