Bengal Energy Announces Results for Q2 2010 - Company Sets Stage for Growth
in India
Bengal continues to set the stage for material growth through exploration and exploitation opportunities on large-scale, high-impact plays in
The new offshore block at CY-OSN-2009/1 in the Gulf of Mannar in the Cauvery Basin was provisionally awarded to Bengal by India's Directorate General of Hydrocarbons at the recent New Exploration Licensing Policy bid round in
Bengal's new block is in the shallow water of the southern Cauvery Basin stretching seven to 16 kilometers offshore. More than 60% of the block is in depths of less than 100 meters of water with 85% of the block in depths of less than 500 meters. Bengal will hold 100% interest in the block and be the operator. At least one seismically defined feature on the new block identified from existing seismic data could be as much as 16,000 acres. The committed capital expenditures on the block are estimated to be US$2,020,000 (about
The new block solidifies
In addition to Bengal's recent progress in
The recent developments in
In order to accelerate the development of its high-impact prospects in
Bengal believes its extensive inventory of 1.9 million net undeveloped acres of land in
------------------------------------------------------------------------- Financial Summary ------------------------------------------------------------------------- $000s except per share, Three Months Ended Six Months Ended volumes and netback ------------------------------------------------- amounts 09/30/09 09/30/08 06/30/09 09/30/09 09/30/08 ------------------------------------------------------------------------- Revenue Natural gas $ 218 $ 476 $ 219 $ 437 $ 1,237 Natural gas liquids 67 138 56 123 343 Oil 220 868 299 519 1,854 ------------------------------------------------------------------------- Total 505 1,482 574 1,079 3,434 ------------------------------------------------------------------------- Royalties 74 258 65 139 614 % of revenue 14.8 17.4 11.3 12.9 17.9 ------------------------------------------------------------------------- Operating & transportation 230 373 246 476 651 ------------------------------------------------------------------------- Netback(1) 201 851 263 464 2,169 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flow from (used in) operations: (263) 1,094 (628) (893) 1,719 Per share ($) (basic & diluted) (0.01) 0.06 (0.03) (0.05) 0.09 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Funds from (used in) operations:(2) (295) 367 (298) (593) 1,226 Per share ($) (basic & diluted) (0.02) 0.02 (0.02) (0.03) 0.07 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net (loss): (1,848) (812) (865) (2,713) (1,163) Per share ($) (basic & diluted) (0.10) (0.04) (0.05) (0.15) (0.06) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Capital expenditures $ (426) $ 3,823 $ 154 $ (272) $ 5,374 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Property disposition proceeds $ 2,111 $ - $ - $ 2,111 $ - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Working capital $ 3,970 $ 3,767 $ 1,764 $ 3,970 $ 3,767 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating Summary ------------------------------------------------------------------------- Volumes Natural gas (mcf/d) 787 609 684 736 672 Natural gas liquids (boe/d) 17 15 15 16 19 Oil (bbl/d) 36 69 43 40 71 ------------------------------------------------------------------------- Total (boe/d @ 6:1) 184 186 172 179 202 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Netback ($/boe) Revenue $ 29.70 $ 86.53 $ 36.54 $ 32.99 $ 92.81 Royalties 4.39 15.05 4.11 4.26 16.60 Operating & transportation 13.54 21.73 15.64 14.55 17.56 ------------------------------------------------------------------------- Total $ 11.77 $ 49.75 $ 16.79 $ 14.18 $ 58.65 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Realized Prices ($ CAD) ------------------------------------------------------------------------- Three Months Ended Six Months Ended ------------------------------------------------------------------------- 09/30/09 09/30/08 06/30/09 09/30/09 09/30/08 ------------------------------------------------------------------------- Natural gas ($/mcf) $ 3.01 $ 8.48 $ 3.51 $ 3.24 $ 10.06 Oil ($/bbl) 65.53 136.22 75.80 71.09 142.13 NGLs ($/bbl) 42.72 98.08 40.24 41.56 98.88 Total ($/boe) $ 29.70 $ 86.53 $ 36.54 $ 32.99 $ 92.81 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Netback is a non-GAAP measure. 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. (2) Funds from operations is a non-GAAP measure. The comparable GAAP measure is cash flow from operations. A reconciliation of the two measures can be found in the table on page 1 of Bengal's management's discussion and analysis for the second quarter of fiscal 2010.
Copies of the consolidated interim Financial Statements and Management's Discussion & Analysis in respect thereof for the three and six months ended
About Bengal
Bengal Energy Ltd. is an international junior oil and gas exploration and production company based in
Disclaimers
This news release contains certain statements which constitute forward-looking statements or information, including the execution of production sharing contracts, required work commitments, work program 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: the ability to meet the work commitments and work program capital expenditure requirements and timing of receipt of final Government of
Barrels of oil equivalent - When converting natural gas to barrels of oil equivalent (boe), Bengal uses the widely recognized standard of 6 thousand cubic feet (Mcf) of natural gas to one barrel of oil (bbl). Bengal cautions that boes 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.
For further information: Bengal Energy Ltd., Bradley Johnson, Chief Executive Officer, Chayan Chakrabarty, President, (403) 205-2526, Email: [email protected], Website: www.bengalenergy.ca
Share this article