Bengal Energy Provides Operational Update

CALGARY, Feb. 14 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to provide the following operational update:

Onshore Australia

ATP 752

Following the drilling and casing of the Barta North and Cuisinier 2 wells, located on the Barta Block ("Barta Block") within Authority to Prospect ("ATP") 752P in the Cooper Basin, Bengal and its partners have decided to drill an appraisal well (the "Cuisinier 3 Appraisal Well") at a location offsetting the Cuisinier 1 Murta discovery. The Company has been advised by the operator of the Barta Block that the expected rig move to the Cuisinier 3 Appraisal Well location is estimated for mid to late February 2011, with a spud date to follow. The Cuisinier 3 Appraisal Well will principally target the producing Murta zone present in Cuisinier 1 Murta zone discovery well (the "Cuisinier 1 Well") in addition to the Hutton and Birkhead Formations which have shows at the Cuisinier 2 well location. Bengal has a 25% interest in the Barta Block, including the Cuisinier discovery.

In addition, production testing and completion operations on the previously announced Barta North and Cuisinier 2 wells are now scheduled for early in the second quarter of 2011. The Barta North well will be tested in the Basal Birkhead and the Murta DC 70 zones. The Cuisinier 2 Well will be tested in both the lower Murta DC 60 and DC 70 zones as well as the upper Murta DC 50 zone.

At the Cuisinier 1 Well, gross average daily production was 441 barrels of oil per day (25% net to Bengal) for the approximately 37 days during the fourth quarter of 2010 that the well produced, with production days being limited due to oil hauling restrictions caused by regional flooding. The Well commenced production via an alternate transportation route on January 26, 2011.

The oil sales price for the fourth quarter of 2010 was $92.32 per barrel and corporate net-back after royalty, operating costs and transportation is estimated at $53.67 per barrel.

On the southern portion of ATP 752P (the Wompi Block) another well is anticipated to be spud before October 2011. This well will be drilled by a farmin partner and Bengal will be carried for all drilling costs.

ATP 732

The Company has been advised by the Department of Natural Resources and Mines of the Queensland Government that the final grant of title to the ATP 732 exploration permit is imminent. This large 654,321 acre, 100% working interest block is offset by producing oil and gas fields and a seismic program has been designed to enable potential drilling in 2011 and through 2012. Bengal has defined numerous leads and prospects on this large operated permit.

Offshore Australia

Exploration Permit AC/P24

Bengal and its partner have agreed to drill an exploration well at the Kingtree location (formerly referred to as the Marshall Withers location). This is a large, shallow structure, defined on the basis of multiple 3D and 2D seismic data, on offshore permit AC/P24 in the Timor Sea of North West Australia. The drilling location lies on trend with the Challis-Cassini oil field, approximately 300 kilometres offshore in a water depth of approximately 110 meters. This drilling location sits east from the Bengal's original Katandra oil discovery and with success could potentially enable joint development of both fields. Drilling is expected to use a semi-submersible rig and is planned by the operator for the second quarter of calendar 2011. Bengal holds a 10% working interest in the prospect and in permit AC/P24. The well is programmed to be drilled to a total depth of 1,650 meters subsea and drilling time is expected to be 22 days.


Bengal has acquired 2 regional seismic lines across its 100% operated permit AC/P47. The new 2D seismic was acquired to assist in the design of and planning for a 750 km² 3D program expected to be completed later in 2011. Bengal has contracted Indigo Pool (Schlumberger) to assist the Company with identification of prospective farmees or partners to help accelerate nearer term drilling activity on permit AC/P47.

INDIA - Offshore

Evaluation work continued on the large (340,000 acre) 100% owned and operated Production Sharing Agreement CY-OSN-2009/1 in India's offshore Cauvery basin. The first year work program includes reprocessing all available seismic records and acquiring certain 2D and 3D regional surveys previously recorded by other operators. The potential acquisition of additional seismic data during the balance of 2011 and Q1 2012 is designed to accelerate the timing of drilling of exploration wells.

INDIA - Onshore

On Bengal's 30% working interest, 233,000 acres (gross) Production Sharing Agreement CY-ONN-2005/1, work is well underway on the first year work program. Reprocessing of existing seismic data is nearly complete. Recently revised plans by the operator, GAIL India Ltd., call for the shooting of 700 km² of 3D seismic data beginning in the first half of 2011 as well as airborne magnetometry work. The increased seismic acquisition is intended to help the joint venture accelerate the drilling of exploration wells on the permit.

Chayan Chakrabarty, President and Chief Executive Officer of Bengal, commenting on the outlook for Bengal said, "Following a fully subscribed $12 million prospectus offering in September 2010 and the recently completed and fully subscribed $9 million bought deal prospectus offering in early 2011, Bengal is now sufficiently capitalized to undertake its nearer term accelerated plans. The Company has a large and attractive portfolio of both lower-risk and high-impact drilling opportunities to assist its growth. Continued drilling success on the Barta Block permit would provide near term and increasingly positive operating income for the Company. Near term exploration efforts on key plays in Australia at offshore permit AC/P24 and onshore permit ATP 732P should encourage momentum. Longer term plays in India and in the Timor Sea should provide additional upside. The Company will continue to evaluate accretive production acquisition, exploration and corporate transaction opportunities, as and where they arise, both in Australia, India and greater Southeast Asia."

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia, India and Canada. 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

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 or information (collectively "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 in this news release include statements and expectations relating to Bengal's future drilling program, including the drilling of the Cuisinier 3 Appraisal Well, the Wompi block well and the AC/P24 exploration well; completion of Bengal's seismic program; testing the Barta North 1 and Cuisinier 2 wells and the timing of the completion of these two wells. 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.

SOURCE Bengal Energy Ltd.

For further information:

Bengal Energy Ltd.
Chayan Chakrabarty, President and CEO
James Mott, Vice President Exploration
(403) 205-2526

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Bengal Energy Ltd.

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