Bengal Energy Ltd. (Bengal or the Company) announced Thursday that the Company and its joint venture parties have successfully completed the previously announced hydraulic stimulation program on ATP 752 Barta Block (Bengal’s working interest is 30.357 percent) in Cooper Basin, Australia.
The hydraulic stimulation campaign has exceeded Bengal’s technical and commercial expectations. Four of the five wells have now been placed back into production demonstrating an aggregate incremental rate of over 200 gross barrels of oil per day (bopd) or 61 bopd net to Bengal. Average gross production from the Cuisinier field in October 2015, prior to the shut-in of the five programmed wells, was approximately 1,569 bopd (476 bopd net to Bengal).
Cuisinier 14, the fifth well stimulated as a part of the program, is expected to undergo post stimulation production testing in January 2016.
“We are very pleased with the results of our 2015 hydraulic stimulation program which has demonstrated the potential to significantly increase the performance of producing wells within the Cuisinier field. Prior to this program none of the 23 wells Bengal has drilled to date had been stimulated,” said Chayan Chakrabarty, Bengal’s president and CEO. “We have added to our production base, while providing an excellent foundation for future production additions, as other low cost, low risk stimulation opportunities are identified.”
Bengal’s strong net-backs continue to provide cash flow of approximately $3.38 (CAD 4.75) per barrel at the current Brent price of $28 per barrel, before hedging and corporate overhead. Including the contribution from Bengal’s hedge, field operating netback increases to $27.77 (CAD 39) per barrel, giving the Company confidence that it can continue to grow in these difficult times.
ATP 732 Tookoonooka
Bengal’s previously announced farm-in partner on ATP 732 has informed Bengal of their decision to withdraw from the farm-in and re-assign their 50 percent equity back to Bengal. The farm-in partner drilled one well (Tangalooma-1) and completed the acquisition of 115.8 square miles (300 square kilometers) of 3D seismic (Nassarius 3D). In the current oil price environment, the size and perceived risk of the prospects identified did not meet necessary thresholds for the farm-in partner to continue with the work program.
Bengal will now retain a 100 percent working interest in this 1,022 square miles (2,648 square kilometers) permit on the eastern flank of the Cooper Basin. There are no remaining commitments on this permit until the expiry of the Tookoonooka Phase 1 work program in March of 2017, at which time the Phase 2 work program will be considered.
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