CALGARY, Nov. 12 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to report that the first well in its 2010 onshore Australia drilling program, the Barta North 1 exploration well (the "Barta North 1 Well"), has been cased to 2,090 meters total depth by the operator Santos, as a potential Murta zone oil well. The Barta North 1 Well is located on the Barta sub-block (the "Barta Block") within Authority to Prospect 752P. The well targeted the Cretaceous Murta sandstone on a separate closed structure mapped 4 km southwest of the Company's Cuisinier 1 oil discovery. The Barta North 1 Well encountered a Murta zone with up to 4.5 meters potential net pay. Measured porosities in the Murta zone at the Barta North 1 Well are similar to those seen in the Cuisinier discovery well. A strong oil show was seen through the Murta zone on mudlogs. Also, deeper in the well, a moderate oil show was seen over six meters within a Jurassic Birkhead sandstone channel, located above the Hutton Formation. Both zones will undergo further testing to determine productive capabilities for potential future completion of the well. The operator anticipates testing could occur during the first quarter 2011, following the drilling of the Cuisinier appraisal well.
On rig release of the Barta North 1 Well, Bengal will increase its working interest in the Barta Block from 14.26% to 25%. The Cuisinier 1 well, also located on the Barta Block, continues to exceed initial production estimates and is currently producing greater than 400 barrels of oil per day (gross) on a daily producing basis. Due to temporary delays related to road access, initial production startup issues and production infrastructure limitations the Cuisinier well has been producing for approximately 19 days per month since start of production.
Once released from the Barta North 1 Well, the rig will be moved to drill the first appraisal well offsetting the Cuisinier 1 oil discovery. This appraisal well will target the producing Murta zone present in Cuisinier 1, as well as the Hutton Formation, and will also test a seismically-defined channel feature with the potential to be a new, undiscovered Birkhead sandstone channel trend. Bengal is fully carried by the operator on the drilling costs associated with this Cuisinier appraisal well.
Chayan Chakrabarty, President and Chief Executive Officer of Bengal, said "Bengal is pleased with the results from drilling the Barta North 1 Well and looks forward to the results of the cased hole testing program. We are also excited to have increased our interest in the Barta Block including the producing Cuisinier 1 well, from 14.26% to 25%. The oil shows seen in the Barta North 1 Well validate our view that the greater Cuisinier area is within a regional hydrocarbon system and many additional leads and prospects have been identified for future exploration. In addition, Bengal is fully carried by the operator on the drilling costs associated with the first Cuisinier appraisal well."
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, 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 drilling of the Cuisinier appraisal well, testing the Barta North 1 Well and the timing of the completion of the Barta North 1 Well. 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.
For further information: For further information:
Bengal Energy Ltd.
Chayan Chakrabarty, President and Interim CEO
James Mott, Vice President Exploration
(403) 205-2526
Email:[email protected]
Website:www.bengalenergy.ca
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