Bengal Energy loses $4.24-million in Q2Bengal Energy loses $4.24-million in Q2
Ticker Symbol: C:BNG
Bengal Energy loses $4.24-million in Q2
Bengal Energy Ltd (C:BNG)
Shares Issued 51,961,349
Last Close 11/14/2011
.92
Monday November 14 2011 - News Release
Mr. Chayan Chakrabarty reports
BENGAL ENERGY ANNOUNCES FISCAL Q2 2012 RESULTS - PRODUCTION INCREASES YEAR OVER YEAR AFTER AUSTRALIA DRILLING SUCCESS
Bengal Energy Ltd. is releasing its financial and operating results for the quarter ended Sept. 30, 2011.
The Company entered the third quarter of fiscal 2012 with approximately $35.2 million in cash, no debt and a balanced portfolio of exploration and development drilling opportunities in Australia and India.
Australia
In Australia, Bengal's Cuisinier light oil discovery, which commenced production in May 2010, and two successful follow-up development wells on Authority to Prospect (ATP) 752P in the Cooper Basin contributed to growth in production, revenue and net operating income year over year. For the three months ended September 30, 2011, Bengal's total oil, natural gas and natural gas liquids (NGLs) production increased 27% to 130 barrels of oil equivalent per day (boe/d) from the 102 boe/d produced in the same quarter of the prior year. The Cuisinier 2 well initiated production in early August 2011 and the Cuisinier 3 well was commissioned three weeks later. After initial optimization and stabilization periods, both wells are now producing with good run times.
Australian field level operating netbacks at Cuisinier increased by $17.13 over year end to $67.63 per barrel, due primarily to production from the Cuisinier 2 and 3 wells. Bengal's netbacks are strong in part because the price the Company receives for all of its oil sales in Australia is based on the Dated Brent reference price, which is currently trading at a premium of approximately US$24 to West Texas Intermediate (WTI). Netback is a non-GAAP measure, calculated by dividing the revenue and costs by the total production measured in boe.
Elsewhere in Australia, exploration efforts are underway on Bengal's operated and 100% working interest ATP 732P block, with 400 kilometres of 2D seismic data and 50 square kilometres of 3D seismic data scheduled to be shot during October and November. Bengal has also begun to procure drilling resources for its anticipated multi-target exploration program. Drilling is expected to begin in the second quarter of calendar 2012.
India
In India, evaluation work continues on Bengal's 340,000-acre 100% owned and operated Production Sharing Agreement CY-OSN-2009/1 in the offshore Cauvery basin. Data retrieval from government sources is ongoing with completion expected late in 2011. A recent gas condensate discovery in the area has prompted Bengal to accelerate plans for 3D seismic acquisition. Depending on vessel availability, this acquisition could commence early in 2012.
On Bengal's 233,000-acre 30% working interest Production Sharing Agreement CY-ONN-2005/1, the second year work program is underway. Reprocessing of existing seismic data has been completed and a contractor has been engaged for the acquisition of 700 square kilometres of 3D seismic data. The acquisition program commenced in September and was recently suspended for some late season monsoon rains. The program is expected to re-commence in December or early in 2012. Increased 3D seismic data is intended to accelerate the drilling of exploration wells on the permit. Three exploration wells are planned for the minimum work program, which could be drilled in 2013 depending on the seismic interpretation.
FINANCIAL AND OPERATING SUMMARY
00s except per share, volumes and netback amounts
Three Months Ended Six MonthsEnded
09/30/11 09/30/10 06/30/11 09/30/11 09/30/10
Revenue
Natural gas $ 67 $ 127 $ 92 $ 159 $ 252
Natural gas liquids 13 16 16 29 37
Oil 937 240 1,211 2,148 443
Total 1,017 383 1,319 2,336 732
Royalties 95 40 121 216 68
% of revenue 9.3 10.4 9.2 9.2 9.3
Operating & transportation 316 220 522 838 399
Netback(1) 606 123 676 1,282 265
Cash flow from (used in) operations 159 (460) (1,371) (1,212) (1,030)
Per share ($) (basic & diluted) 0.00 (0.02) (0.03) (0.02) (0.05)
Funds from (used in) operations: (430) (472) 7 (423) (1,018)
Per share ($) (basic & diluted) (0.01) (0.02) 0.03 (0.01) (0.05)
Net (loss): (4,247) (634) (1,061) (5,308) (1,356)
Per share ($) (basic & diluted) (0.08) (0.04) (0.02) (0.10) (0.08)
Capital expenditures $ 2,407 $ $ 174 $ 1,933 $ 4,340 $ 267
Volumes
Natural gas (mcf/d) 196 366 249 221 371
Natural gas liquids (boe/d) 3 5 2 3 4
Oil (bbl/d) 94 36 108 100 31
Total (boe/d @ 6:1) 30 102 152 140 97
Netback(1) ($/boe)
Revenue $ 86.21 $ 41.59 $ 95.46 $ 91.20 $ 41.13
Royalties 8.01 4.38 8.77 8.42 3.85
Operating & transportation 26.78 23.88 37.77 32.70 22.40
Total $ 51.42 $ 13.33 $ 48.92 $ 50.08 $ 4.88
Bengal offers a portfolio of relatively low-risk and high-impact drilling opportunities. Production from the Company's continued drilling success at Cuisinier is expected to drive increasingly positive operating income and set the stage for future development. Additional exploration drilling on permit ATP 732P is anticipated in the second quarter of 2012. Bengal will continue to evaluate opportunities for accretive acquisitions near the Company's core operating areas.
Bengal has filed its consolidated interim financial statements and management's discussion and analysis for the three months ended September 30, 2011 with Canadian securities regulators. The documents are available on SEDAR at
www.sedar.com or by visiting Bengal's website at
www.bengalenergy.ca.
We seek Safe Harbor.