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
Highlights from the 2013 fiscal year and fourth quarter
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,
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
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.
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