CALGARY, Nov. 6, 2012 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to report that it has been advised by the operator of the Cuisinier Oil Field of initial production testing results from recently drilled wells. The Cuisinier Oil Field is located within the boundaries of the Barta sub-Block of Authority to Prospect ("ATP") 752P in the Cooper/Eromanga Basins in the State of Queensland, Australia. Bengal has a 25% working interest in the Cuisinier Oil Field and the Barta sub-Block of ATP 752P.
Combined new oil production from three of the four recently drilled and completed wells, all of which targeted the Murta formation, amounts to approximately 1,800 barrels of oil per day (bopd) (net 450 bopd to Bengal) which exceeds the initially estimated volumes. Additional incremental production is expected in the near future when the Cuisinier North 1 and Barta North 1 wells are commissioned. All of these wells will be produced under recently issued Extended Production Tests ("EPT's").
Oil from these new wells will be trucked to a sales point under the current production system. Current Cuisinier facility capacity is limited to approximately 1,300 barrels per day (net 325 bopd to Bengal) provided that two triple tanker loads are available daily.
Facilities upgrade and pipeline connection from Cuisinier to the Cook Oil Field facility is forecasted to be completed by the second quarter of 2013 subject to receipt of the necessary approvals. These steps will enable full field production (currently 8 wells) from Cuisinier upon receipt of the Petroleum Lease for the Cuisinier oil field. The existing Cuisinier 1, 2 and 3 wells have been shut-in awaiting grant of a Petroleum Lease ("PL"), which is anticipated by the second quarter of 2013. Granting of the PL will allow all 8 Cuisinier wells to produce.
In addition, the previously announced 224 square kilometer 3D seismic program has commenced and will evaluate the area to the north of the Cuisinier pool for additional prospectivity in both the Murta and deeper zones.
"We're pleased not only with the success of the Cuisinier completion program, but also with the higher than estimated initial production rates from the new wells." said Chayan Chakrabarty, President & CEO of Bengal.
The Cuisinier structure has been interpreted from 3D seismic data by Bengal to be one of several culminations in the area. The planned additional appraisal drilling will determine the ultimate size of the structure and the extent of the Murta reservoirs.
Bengal believes that the Cuisinier structure has the potential to host oil in additional reservoirs. The adjacent Cook Oil Field produces oil from the prolific Hutton reservoir. Cuisinier wells have 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 four other permit areas in the Cooper 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.
Source: Bengal Energy Ltd.
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