Bengal Underscores Key Developments in Canada, Australasia

Bengal Energy has announced a number of key developments on its operations in Canada, Australia and India.

Bengal is pleased to report that it has raised $2.2 million through the disposition of relatively small, non-operated production assets in the Kaybob region of Alberta. The Kaybob assets contributed approximately $117,000 to Bengal's net operating income and 54 boe/d production over the last six months. The Kaybob assets comprise less than a net section of land which makes them non-strategic to the Company. Funds from the disposition will enable Bengal to more quickly advance a number of higher impact prospects in Australia and India.

Bengal is also pleased to announce that its joint venture partner executed a Native Title Agreement with the Boonthamurra People at ATP 732P in Australia on September 4, 2009. The Native Title Agreement is significant because it is required before the state government can authorize exploration activities to commence. ATP 732P is 654,321 gross acres in size and is located in the Cooper Basin in close proximity to producing oil and gas fields. Under the terms of the farm-in agreement, Bengal will spend AU$3 million (approximately C$2.8) on exploration to earn a 35 percent interest in the block. Planned expenditures are AU$1 million over the next year.

The next catalyst for Bengal in Australia is expected to be initial production from its Cuisinier oil discovery on ATP 752P (the Barta block) in the Cooper Basin. Production facilities have been installed and a production license has been applied for. Production will commence when marketing and transportation contracts have been executed. Processing of the 103 square kilometer Cuisinier appraisal 3D seismic survey is underway and results are expected in November 2009 which will enable a development plan to be undertaken in 2010.

Also in Australia, Bengal's joint-venture partner reported that it has now received approval from Primary Industries and Resources SA (PIRSA), an agency of the Government of South Australia, to commence a coal seam test-coring program to evaluate coal seam methane potential on PEL 103A on the Innamincka Dome in the Cooper Basin. Wellsite construction commenced this week and mobilization of the drilling contractor is expected in the next three weeks. Drilling of the initial well will commence within six weeks and is expected to take approximately 10 days. Bengal has a 25 percent interest in two of the initial test-holes to be drilled. The extent of the pilot program will be determined on the basis of the test-hole results.

As previously announced, Bengal is evaluating a number of exploration blocks in India with a view to making bid decisions. The exploration blocks are available as part of the eighth round of New Exploration Licensing Policy (NELP-VIII) with bids due on October 12, 2009.

Bengal has assembled a balanced portfolio of assets with production, near term development and exploration lands with significant prospective resources. Bengal has over 1.5 million acres of exploration lands in onshore India and Australia and offshore Timor Sea.