Bengal Energy Provides Business Update Including Progress in Award of Large Block in India

    CALGARY, Sept. 15 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the
"Company") today provided an update regarding its activities in India,
Australia and Canada.
    India's Directorate General of Hydrocarbons has recommended to the Indian
government the official award of block CY-ONN-2005/1 (the "Block") in the
Cauvery Basin to Bengal and its partners. The official award of the Block is
expected shortly and the formal government signing ceremony is expected to
take place by the end of November. The Block is a 233,761 acre land block
located in a Category 1 proven producing basin in southeast India. Bengal has
a 30% interest in the Block and the operator of the Block, GAIL (India)
Limited ("GAIL"), holds a 40% interest. Gujarat State Petroleum Corporation
("GSPC") holds the remaining 30% interest.
    "The award of the Cauvery block in India is very important to Bengal
because of its large potential resources, which are over four times all of
Bengal's other resources combined, and also because of the strong local
partners that we will work with in its exploration and development," said
Bradley Johnson, Chief Executive Officer of Bengal. "GAIL and GPSC have
significant oil and gas interests in India and other countries including
China, Egypt, Oman, Yemen and Australia. We believe we can add value for them
not only in the Block but also in their other operations by applying our
strong technical and operational experience and our access to Canadian
practices and technologies."
    In Australia, the first well in the Santos operated Joint Venture,
located on the 631,093 acre Barta Block, has been perforated and flow tested.
The well will be completed with a beam pumping unit and will be tied into
Santos's Cook oilfield battery, approximately 6 kilometers to the west. Oil
flowed to surface from a 9 meter perforated interval in the Murta sandstone.
Early estimates suggest that the well will be capable of producing between
200 and 250 barrels of light sweet oil per day. Production is expected to be
online in Q1 2009 after construction of the pipeline and completion of
processing agreements. The partners believe there are a number of follow-up
drilling opportunities and are proposing a 150 to 170 square kilometer 3D
seismic program to further define and delineate the size and extent of the
reservoir. Bengal has earned a 17.5% interest in the Barta Block and has the
option to increase its interest to 25% by electing to fund 55% of the next
well. In the 236,700 acre Wompi Block, in which Bengal has already earned a
30% working interest, Santos is funding a 200 square kilometer 3D seismic
survey and expects to fund the drilling of three wells in 2009.
    With regard to Bengal's 10% interest in the Katandra and Marshall-Withers
prospects located offshore Australia in the Timor Sea Vulcan Sub-Basin, Bengal
and its partners are awaiting government approval to proceed with the
reprocessing of data from the Schwarzer 3D seismic survey, completed in the
third quarter of 2007, in preparation for determining a follow-up drill
    In Canada, Bengal has drilled and cased a new appraisal well for
Baldonnel gas (42% working interest) at its property in northern British
Columbia. The well is planned to be tied in over the next 30 days.
    Bengal continues to evaluate joint venture, farm-in and acquisition
opportunities to enhance its international exploration and development

    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.


    Except for statements of historical fact, all statements in this press
release, without limitation, regarding new projects, acquisitions, and future
plans and objectives are forward-looking statements which involve risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from those
anticipated in such statements.

    %SEDAR: 00003559E

For further information:

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

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