More NewsBengal Energy Ltd (C-BNG) - News Release
Bengal Energy drills, cases three more Cuisinier wells
2011-06-15 09:04 ET - News Release
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BNG Close 2011-06-14 C$ 1.35
Mr. Chayan Chakrabarty reports
BENGAL ENERGY CONFIRMS 100% CUISINIER DRILLING SUCCESS RATE AND GIVES STATUS UPDATE ON PRODUCTION AND COMPLETIONS
Bengal Energy Ltd. is providing an update on current production and completion operations at Cuisinier.
The initial Cuisinier discovery well (Cuisinier 1) began production in May, 2010, and has cumulatively produced over 63,000 barrels of oil to April 30, 2011, with no appreciable water cut. The well's daily productive capability continues to be in excess of 350 barrels of oil per day (bopd) (88 bopd net to Bengal). The well has been produced intermittently over the last few months due to logistical problems related to severe flooding earlier this year in central Australia. The operator is investigating additional tank storage options to improve oil sales and mitigate downtime at Cuisinier 1. Improvements are being seen. The operator reported that 10,481 barrels of oil were delivered for sale in April, averaging 340 bopd on a calendar-day basis (net 85 bopd) over the month.
Two appraisal development wells on the Cuisinier discovery (Cuisinier 2 and Cuisinier 3) and an exploration well (Barta North 1) were cased as potential oil wells over the past six months. Cuisinier 2 was drilled approximately 450 metres northeast of Cuisinier 1 and encountered three separate pay sands in the Murta sandstone to a depth 28 metres below the base of perforations in Cuisinier 1. Swab test results from the lowest Murta pay sand recovered 95 barrels of oil over approximately a six-hour period. The two upper Murta zones at Cuisinier 2, including the equivalent zone to the producing pay sand at Cuisinier 1, may require reservoir stimulation before the upper sands can produce oil. A complete analysis of test results from the wells is expected from the operator.
Cuisinier 3 was drilled approximately 700 m southwest from Cuisinier 1. Cuisinier 3 showed apparent log pay in two Murta zone sandstones. Early swab test results of the upper Murta pay sand, the equivalent zone to the producing Murta pay sand at Cuisinier 1, recovered 37 barrels of oil over an approximately five-hour swab period with mechanical difficulties preventing a full evaluation. The swab results require further analysis; however, the upper Murta zone is expected to produce clean oil. The lower zone in this well tested non-commercial rates and will remain suspended.
Both Cuisinier appraisal wells will be placed on pump with oil pipelined to the Cuisinier 1 lease and an expanded tank system. The ultimate productive capability of each well will be established on pump. The results to date from these Cuisinier appraisal wells indicate that at least a 19 m gross oil column exists within the upper Murta oil zone originally found in Cuisinier 1. Additionally, the lower Murta oil pay, as demonstrated by Cuisinier 2, possibly extends as much as 21 m deeper. Further analysis of the completion results, additional production from the wells, and further step-out and appraisal drilling are required to determine and more fully understand the extent of the newly discovered Cuisinier oil pool.
Barta North 1 was drilled approximately four kilometres southwest of Cuisinier 1 on a separate structure. The well was perforated over six metres in the upper Murta zone, the equivalent zone to the producing Murta pay sand at Cuisinier 1. Swab testing of this zone recovered 58 barrels of oil over approximately nine hours. The well has been completed as a pumping oil well and the operator is reviewing facilities connection options, one of which may be a pipeline from Barta North 1 to the Cuisinier 1 tank system. Perforations were also made to a deeper, Birkhead formation sandstone in Barta North 1 which recovered oil at low rates. Although the operator deemed the productivity of this Birkhead oil reservoir to be subeconomic at this time, the result indicates that additional oil potential may exist in the northern part of the Barta subblock.
To fully understand the extent of both of these new oil pool discoveries, further step-out and appraisal drilling is required. A multiwell drilling program and 3-D seismic survey north of the Cuisinier oil pool are in the planning stage and will be implemented in order to pursue potential exploration leads and appraisal opportunities. Bengal holds a 25-per-cent interest in the Cuisinier oil discovery, the Barta North oil discovery and the greater 360,000-acre Barta subblock portion of exploration permit ATP 752P.
Oil production from the new wells is expected during the third quarter of calendar year 2011. The company will continue to update investors as additional information is received from the operator.
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