Bengal Cases 2nd Cuisinier Appraisal Well as Potential Oil Well

Bengal reported that the second appraisal well on the Cuisinier discovery (Cuisinier 3) is being cased as a potential Murta oil well. Cuisinier 3 is located in the onshore Cooper Basin, in Queensland, Australia. The well was drilled to a depth of 2,040 m and is located approximately 750 m south of the initial Cuisinier discovery well (Cuisinier 1). Two oil bearing Murta sands were penetrated in Cuisinier 3. Bengal Energy Ltd., through its wholly owned Australian subsidiary, Avery Resources, holds a 25% working interest in both the Cuisinier discovery and the 360,000 acre Barta sub-block portion of exploration permit Authority to Prospect 752P.

At Cuisinier 3, the upper Murta sandstone, being the same zone that is productive in the Cuisinier 1 discovery well, gave good oil shows over an eight meter interval with open hole logs indicating 5 to 6.5 meters of net oil pay with an average 17% porosity - similar in quality to Cuisinier 1. The Cuisinier 3 well has extended the oil/water contact below the base of perforations in the previously drilled Cuisinier 1 well. A wireline test in Cuisinier 3 recovered oil at the base of the upper Murta at a depth of 1,639 m (-1,528 m subsea) suggesting the upper Murta oil bearing zone in the Cuisinier discovery has a minimum 19 meters of structural gross oil column. Pressure data analysis suggests that the Cuisinier oil-water contact may be deeper than originally estimated for the Cuisinier 1 discovery well. Further appraisal and step-out drilling may be warranted.

A second, deeper Murta sand zone at Cuisinier 3 also gave oil shows over a seven meter interval and open hole logs suggest 1 to 3.7 meters of potential net oil pay with an average 17% porosity. Further testing is necessary to confirm this deeper zone. As previously reported, the Cuisinier 2 appraisal well, northwest of the initial discovery, similarly encountered two deeper lower Murta sand zones each giving good oil shows. Completion and testing operations of all wells are expected to commence in late March/early April 2011.
Cuisinier 1 well production is currently being trucked to an alternate processing facility on a temporary basis. Flood waters are reported to be receding on the main Cuisinier access road and when road inspection is complete, increased oil production volumes should be possible from the discovery well. The Cuisinier 1 well (where Bengal holds a 25% working interest) remains capable of oil rates in excess of 400 bopd with no water production to date. Completion efforts on the previously drilled Barta North 1 and Cuisinier 2 wells plus the Cuisinier 3 well (all at 25% working interest) may also increase production capability and enable better planning for further production facilities and oil transport.

Commenting on the results of the latest well, Chayan Chakrabarty, President and Chief Executive Officer of Bengal, said "Results from Cuisinier appraisal drilling have to date exceeded Bengal's expectations and in addition to the continuing appraisal and development efforts to be conducted, give a renewed impetus to further exploration efforts both offsetting Cuisinier and on the greater 360,000 acre Barta Block."


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