RE: Could see a pop today Bengal's Cuisinier wells test at combined 800 bopd
Ticker Symbol: C:BNG
Bengal's Cuisinier wells test at combined 800 bopd
Bengal Energy Ltd (C:BNG)
Shares Issued 52,110,177
Last Close 9/17/2012 $0.75
Tuesday September 18 2012 - News Release
Mr. Chayan Chakrabarty reports
BENGAL ENERGY NOW 8 FOR 8 IN THE COOPER BASIN - PRODUCTION RAMPING UP WITH AN ESTIMATED NET MINIMUM 275 BOPD EXPECTED - RESULTS INDICATE SIGNIFICANTLY LARGER PLAY AT CUISINIER IN AUSTRALIA'S ONSHORE COOPER BASIN
Bengal Energy Ltd. has completed production testing on the recently drilled Cuisinier wells in Australia's Cooper basin with positive results from all four wells. Combined new oil production from these four wells from the Murta formation is estimated at initial rates of approximately 800 barrels of oil per day (bopd) (net 200 bopd to Bengal). Flow line construction for all wells has commenced with on-stream dates estimated in late October of this year. In addition, the previously drilled Barta North 1 well has been flow line connected and is expected to commence production on September 17, 2012 at approximately 70 bopd (net 18 bopd). Oil from these new wells will be trucked to a sales point under the current production system.
Facilities upgrade and pipeline connection to the Cook Oil Field facility is forecasted to be completed late in the calendar fourth quarter or early first quarter 2013 subject to receipt of the necessary approvals. These steps will enable full field production (8 wells) to commence from Cuisinier. Initial combined daily production rates from these eight wells are estimated at a minimum of 1,100 bopd (net 275).
The existing Cuisinier 1, 2 and 3 wells have been shut in awaiting grant of a Petroleum Lease (PL), which is anticipated late in 2012. Granting of the PL will allow all eight Cuisinier wells to produce.
Bengal has a 25% interest in the 631,000 acre Barta Block of Authority to Prospect (ATP) 752P.
"We're pleased not only with the success of the Cuisinier completion program, but also with the potential of our acreage in multiple geological zones on this block," said Chayan Chakrabarty, President & CEO of Bengal. "We are working closely with our Joint Venture partners to commence an additional 200 square kilometre 3D seismic program to further explore the block. The successful wells and completions to date support the pre drill geophysical interpretation and have now extended the oil bearing DC 70 trend to 4,400 metres from south to north and have expanded the DC 70 sand oil window to 25 metres in thickness."
Bengal has conducted a long-term pressure test at the original discovery well at Cuisinier 1. This test indicates a minor pressure drop from the pre-production period (virgin reservoir pressure) of approximately 4.0%. Bengal believes that this pressure information, when viewed against cumulative production prior to the pressure buildup test of 123,200 barrels, is indicative of the possibility of further extensions of the Cuisinier oil field. For the fiscal year ending March 31, 2012, field netback on this high quality, 52 degree API crude oil produced at Cuisinier was $68.81 per barrel.
The Cuisinier structure has been interpreted from 3D seismic data by Bengal to be one of several culminations in the area. Additional appraisal drilling will be required to determine the ultimate size of the structure and the extent of the Murta reservoirs.
Bengal believes that the Cuisinier structure has the potential to host oil in additional reservoirs. The adjacent Cook Oil Field produces oil from the prolific Hutton reservoir. Cuisinier wells have also had oil shows in the Birkhead and Triassic targets. Results in the Cuisinier-Cook area show that significant oil accumulations can be found in different reservoirs in this region.
Bengal has interests in four other permit areas in the Cooper Basin.
We seek Safe Harbor.