Bengal Energy Announces Year End Fiscal 2013 Results

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Bengal Energy Ltd. (BNG.TO) announced its financial and operating results for the fiscal year ended March 31, 2013. It said: "2013 was an active and successful period for Bengal, evidenced by the continued growth in our production, reserves and revenue, as well as the achievement of several important milestones which further advance our progress and set the stage for future expanded development."

Highlights from the 2013 fiscal year and fourth quarter follow:

Q4 Production increased 216%: Corporate production in the fourth quarter averaged 325 barrels of oil equivalent per day (boe/d), an increase of 216% over 103 boe/d for the same period in 2012. Average annual production of 170 boe/d in 2013 increased by 26% over the 135 boe/d during fiscal 2012. These increases are directly attributable to production growth from wells in the Cuisinier oil pool located on the Barta sub-block of ATP752 in the Cooper Basin, Australia.

Q4 Revenue increased 384%: Reported revenue for the fourth quarter was $3.0 million, compared to $0.6 million for the same quarter in 2012. For fiscal year 2013, reported revenue totaled $5.9 million, 37% higher than the $4.3 million reported for the same period the prior year.

Q4 Netbacks of $69.93/boe: During the fourth quarter, Bengal realized operating netbacks of $69.93/boe, an increase of 156% compared to $27.27/boe for the same quarter in 2012. Full year 2013 average realized operating netbacks were $58.61, an increase of 28% relative to $45.72/boe realized in fiscal 2012. These strong netbacks reflect the strength of the Brent benchmark crude oil price used in Australia, coupled with attractive royalty rates and declining operating / transportation expenses in Australia.

Reserves (2P) up by 167%: Independent third party year-end reserves evaluation to March 31, 2013 have shown a 167% increase year-over-year in the corporate proved plus probable reserves, driven by a 260% increase in 2P reserves at Cuisinier. Based on 2P reserve additions, the company replaced approximately 18 times its annual 2013 production to March 31, 2013. These reserve additions do not reflect the 5 recently drilled wells at Cuisinier. Detailed reserves disclosures will be included in Bengal's 2013 Annual Information Form to be filed on SEDAR at www.sedar.com.

100% Drilling Success Rate to date in Cuisinier: A total of 13 wells to date have been drilled and cased as oil producers with 100% success in Cuisinier. Eight of these 13 wells are currently producing.

New Oil Discovery & Significant Farm-in for Tookoonooka: The company's first exploration well in the Tookoonooka drilling campaign, Caracal-1, resulted in a new light oil discovery. Subsequent to year end, Bengal signed a Binding Letter of Intent to form a strategic joint venture in Tookoonooka with Australia-based Beach Energy Ltd., which will see Beach fund the drilling of two wells and the acquisition of an additional 300 km2 of 3D seismic (up to A$11.5M).

Strong Financial Position: With the successful issuance of $3.5 million in convertible and non-convertible notes in January 2103 (maturing in January 2014), the completion of a $5.7 million equity financing in April 2013, and the recent joint venture in Tookoonooka, the company is in a strong financial position to undertake its nearer-term exploration plans and fulfill near-term work program commitments.

Strategic Milestones Met: Just after the end of the fiscal year, the final approval of Petroleum Lease 303 for the Cuisinier oil pool was granted, which allows all current and future Cuisinier wells to produce for up to 21 years. Also after year end, the Cuisinier to Cook liquids pipeline was commissioned enabling production to be delivered to sales points through a pipeline, rather than trucking, which expands the area's productive capacity and facilitates more stable production volumes.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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