News ReleaseBengal Energy Ltd (C-BNG) - News Release
Bengal loses $3.65-million in fiscal 2011
2011-06-14 22:23 ET - News Release
Shares issued 51,961,349
BNG Close 2011-06-14 C$ 1.35
Mr. Chayan Chakrabarty reports
BENGAL ENERGY ANNOUNCES RESULTS FOR THE YEAR ENDED MARCH 31, 2011 - COMPANY ACCELERATES GROWTH THROUGH ONSHORE DRILLING AND OFFSHORE UPSIDE
Bengal Energy Ltd. has released its financial and operating results for the year ended March 31, 2011.
Since the start of the fiscal year ended March 31, 2011, Bengal has raised $46.5-million (gross) through three fully subscribed share offerings, added international expertise to its board of directors, brought one oil discovery on production, drilled three additional wells and continued exploration efforts on its 2.2 million net acres of undeveloped land in Australia and India.
Bengal is now well capitalized to accelerate growth through drilling and exploration efforts in three core areas: low-risk development drilling in Australia's Cooper basin, high-impact drilling offshore Australia on Bengal's 10-per-cent permit AC/P24, exploration on the company's 100-per-cent Block AC/P 47 in the Australian Timor Sea, and onshore and offshore exploration on two blocks in India's Cauvery basin. All three areas offer large land positions in proven, producing basins with strong regulatory frameworks and Brent pricing for crude oil. Bengal operates 89 per cent of its total net acreage.
Recent highlights
- Raised $12-million on Sept. 29, 2010, $9-million on Jan. 28, 2011, and $25.5-million on April 14, 2011, through three equity financings, for total gross proceeds of $46.5-million. The proceeds will help accelerate plans for development of the company's oil and gas properties.
- Commenced production in May, 2010, from the Cuisinier oil discovery well in Australia located on the Barta subblock of the Cooper basin on authority to prospect ATP 752P. The well continues to produce clean oil at 52-degree API. Although the well is capable of producing more than 350 barrels per producing day (88 net), production has been restricted over the last few months due to logistical problems related to severe flooding earlier this year in Queensland, Australia. The operator is investigating options to improve oil sales and thus reduce downtimes.
- Drilled three additional wells on the 360,000-acre Barta block in fiscal 2011, including two wells offsetting Cuisinier 1 and one exploration well four kilometres southwest of Cuisinier 1 achieving a 100-per-cent drilling success rate. Each new well has been cased as a potential oil well. Barta North 1 encountered oil pay in the Cretaceous Murta sandstone. This suggests the existence of a wide fairway for Murta oil prospects offsetting the Cuisinier 1 oil discovery. Bengal expects to complete and test the wells in mid-2011. Bengal now has a 25-per-cent working interest in the Barta block.
- Received the ministerial grant of authority to prospect 732P from the Department of Natural Resources and Mines in Queensland, Australia, with an effective date of April 1, 2011. ATP 732P is in Australia's Cooper/Eromanga basin. Bengal has a 100-per-cent working interest and operatorship of ATP 732P, a lightly explored permit measuring 654,321 acres. Only eight exploration wells have been drilled on the permit, three of which had hydrocarbon shows. The permit is adjacent to blocks with producing oil and gas fields from numerous depths. Seismic is planned for the fourth quarter of this year, and the company plans to undertake a multiwell drilling program commencing in early 2012.
- Obtained an independent resource evaluation report of ATP 732P from Ryder Scott Company-Canada with an effective date of Feb. 1, 2011. The results were summarized in a news release on March 1, 2011. The company believes the opportunities identified on ATP 732P support an accelerated exploration program.
FINANCIAL AND OPERATING SUMMARY (
00s except per share, volumes and netback amounts) Three months ended Twelve months ended March 31, March 31, Dec. 31, March 31, March 31, 2011 2010 2010 2011 2010RevenueNatural gas $125 $206 $112 $488 $830Natural gas liquids 17 22 12 67 163Oil 549 52 306 1,298 779Total 691 280 430 1,853 1,772Royalties 67 39 46 181 231% of revenue 9.7 13.9 10.5 9.8 13.0Operating and transportation 295 116 189 883 756Netback (1) 328 125 195 788 785Cash flow used in operations (807) (493) (556) (2,393) (1,650)Per share ($) (basic and diluted) (0.02) (0.03) (0.02) (0.09) (0.09)Funds used in operations (2) (751) (626) (683) (2,452) (1,566)Per share ($) (basic and diluted) (0.02) (0.03) (0.02) (0.10) (0.08)Net (loss) (1,188) (1,396) (1,031) (3,654) (4,991)Per share ($) (basic and diluted) (0.03) (0.08) (0.03) (0.14) (0.27)Capital expenditures $ 1,879 $ 553 $ 1,797 $ 3,943 $ 1,401VolumesNatural gas (mcf/d) 348 377 327 354 568Natural gas liquids (boe/d) 3 5 3 3 11Oil (bbl/d) 56 7 36 39 28Total (boe/d at 6 to 1) 117 75 94 101 134(1) Netback is a non-generally accepted accounting principles measure. Netback per barrel of oil equivalentis calculated by dividing the revenue and costs in total for the company by the total production of the company measured in boe.(2) Funds from operations is a non-GAAP measure. The comparable GAAP measure is cash flow from operations. A reconciliation of the two measures can be found in Bengal's annual management's discussion and analysis.
Bengal believes its recent equity financings and drilling success set the stage for near-term operating income and long-term growth. Exploration success from high-impact plays at offshore permit AC/P 24 and onshore permit ATP 732P in Australia over 2011 and 2012 should create additional momentum. Long-term plays in India and in the Timor Sea could produce results as early as 2013. Bengal will continue to evaluate accretive production acquisitions and corporate transactions within and proximate to the company's core areas.
Bengal's annual management's discussion and analysis and annual consolidated financial statements can be viewed at the company website and SEDAR.
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