David Pescod Today BENGAL ENERGY (T-BNG) $0.60 -0.01
Bengal Energy announced its financials for the three and
six months ending September 30th today as they focused
on drilling, spending $10million to pursue its drilling program
in Australia.
The highlights included 100% drilling success at
Cuisinier. Since March 2012, Bengal has drilled four oil
producers, resulting in a drilling success rate of eight for
eight in the Cooper Basin of Australia. The Company is
currently producing 325 bopd net to the Company from
two of the newly drilled wells, under Extended Production
Test, while certain regulatory and capacity constraints
limit full production from all the wells. The Company is
currently trucking its production to a nearby terminal.
The operator of the field is progressing plans for facilities
upgrades and pipeline connection to a large facility at an
adjacent field that should handle production from all wells
in the field. The Company expects regulatory approval and
facilities upgrades to be completed in the quarter ending
June 30, 2013.
Cuisinier reserves increased substantially for their onshore
Australia in the Cooper/Eromanga Basins recognizing
717,000 proved barrels (an increase of 904%),
1,550,000 proved plus probable barrels (an increase of
269%) and 7,512,000 proved plus probable plus possible
barrels (an increase of 614%) to Bengal. The net present
values discounted at 10% amount to $16 million for
proved; $37 million for proved plus probable and $164
million for proved plus probable plus possible.
The market seems to be giving credit to companies for
their production & 2P reserves, especially on takeouts,
with little credit being given for any “potential”. So if you
can get a handle on that, then market volatility is a little
easier to deal with when you believe you know what you
own…a hard asset. Then, you just hope management
doesn’t do anything to derail the project or the underlying
commodity holds in there as global demand is in question
with the gloomy future outlook.