CALGARY, June 26, 2013 /CNW/ - Bengal Energy (TSX:
BNG) ("Bengal", or the "Company") is pleased to
announce that it has exercised its pre-emptive right to purchase an
additional 5.357% interest in the Cuisinier Oil Field and the
Authority to Prospect ("ATP") 752P (the "Acquisition") in the
Cooper-Eromanga Basin in Queensland,
Australia, bringing the Company's total ownership to
30.357%. The Cuisinier Oil Field has 13 successful light oil
wells drilled to date, is connected by pipeline to the Cook
Processing Facility, and currently generates production of
approximately 375 barrels of oil per day ("b/d") net to
Bengal. After giving effect to the Acquisition, this
production is expected to increase by more than 20%, to
approximately 455 b/d. Over the coming months, the Company will be
well positioned to further benefit from additional volumes coming
on-stream once the five successful wells drilled in the 2013
campaign are tied in, which is anticipated to occur in September of
this year.
Bengal's purchase price for the additional
interest is expected to be approximately AUD $7.6 million (CAD $7.4
million) and is subject to closing costs and normal closing
adjustments from the effective date of March
15, 2013. Bengal anticipates securing predominantly
debt financing for the Acquisition and will provide further
information once additional details are available with respect
thereto.
Bengal is exercising its pre-emptive right
pursuant to the proposed sale by one of the joint venture partners
of a 15% interest in ATP 752P for AUD $20
million. The Acquisition will be effected by way of an asset
sale agreement, which the Company expects to enter into in July
2013, and will be subject to receipt of necessary governmental
approvals in Australia.
"Increasing our ownership in Cuisinier is a very
positive development for Bengal," said Chayan Chakrabarty, Bengal's President &
Chief Executive Officer. "As a result of this Acquisition,
net production to Bengal will increase by more than 20%, and
coupled with the area's attractive netbacks, enables us to generate
higher incremental cash flows. Further, the Company will be
positioned to realize a greater proportion of future booked
reserves, which is expected to enhance the Company's growth and
underlying value."
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. Additional information is available at
www.bengalenergy.ca.
This news release contains certain
forward-looking statements or information ("forward-looking
statements") as defined by applicable securities laws that involve
substantial known and unknown risks and uncertainties, many of
which are beyond Bengal's control. These forward-looking
statements relate to future events or our future performance.
All statements other than statements of historical fact may be
forward-looking statements. The use of any of the words
"plan", "expect", "prospective", "project", "intend", "believe",
"should", "anticipate", "estimate", or other similar words or
statements that certain events "may" or "will" occur are intended
to identify 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, without limitation,
assumptions relating to: the impact of economic conditions in
North America, Australia, India and globally; industry conditions;
changes in laws and regulations including, without limitation, the
adoption of new environmental laws and regulations and changes in
how they are interpreted and enforced; increased competition;
the 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 and extensions 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. As such, undue reliance should
not be placed on forward-looking statements. Forward-looking
statements contained herein include, but are not limited to,
statements regarding: a future financing to fund the Acquisition;
completion of the Acquisition; the benefits of the Acquisition; and
receipt of all regulatory approvals in respect of the
Acquisition. 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, risks associated with: a failure to
secure debt financing to fund the Acquisition; failure to receive
governmental approvals in respect of the Acquisition; failure to
complete the Acquisition on the timeline anticipated or at all;
failure to realize the anticipated benefits of the
Acquisition; the failure to obtain required safety assessments and
rig acceptance; failure to secure required equipment and personnel;
changes in general global economic conditions including, without
limitations, the economic conditions in North America, Australia, India; increased competition; the availability
of qualified operating or management personnel; fluctuations in
commodity prices, foreign exchange or interest rates; changes in
laws and regulations including, without limitation, the adoption of
new environmental and tax laws and regulations and changes in how
they are interpreted and enforced; the results of exploration and
development drilling and related activities; the ability to access
sufficient capital from internal and external sources; failure to
obtain or delays in obtaining regulatory approvals; delays or
changes in planned operations; operational risks associated with
exploration, development and production; the results of geological,
geophysical and reservoir analysis; results of drilling and seismic
activities; results of due diligence investigations; and stock
market volatility. Readers are encouraged to review the
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 Company cautions that the
foregoing list of assumptions, risks and uncertainties is not
exhaustive. 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.