Calgary, Alberta--(Newsfile Corp. - September 12, 2022) - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce that water shut-off operations at its Wareena 1 and Wareena 5 sites have been completed successfully.
The water shut-off operations at the two Wareena sites were completed on time and on budget, with initial results that may support the Company's plans for further interventions designed to increase natural gas flow. Subject to the success of these interventions and positive test results, Bengal will evaluate its future capital and commercial plans to tie-in the wells to allow for commercial production and sale of natural gas from the wells.
At Wareena 1, the wellhead pressure was approximately 2,300 pounds/square inch, based on a measurement taken prior to the workover in 2021. However, there was considerable cross flow of water from the dominant lower watered out zone which resulted in diminished well performance. Post water shut-off, the fluid level increased and the Company is monitoring the well. This data supports the Company's expectation that the reservoir should be capable of flowing commercial volumes of natural gas following the remediation of perforation damage resulting from more than eight years of inactivity. The Company intends to re-perforate all of the PC-20 sand and swab and test the well. These operations are expected to occur as soon as equipment and contractors are available.
At Wareena 5, the Company has been monitoring the well post water shut-off and the data indicates that the PC-20 sand was likely impaired during the well's shut-in period of more than eight years. The Company intends to re-perforate all of the PC-20 sand and swab and test the well in concert with its operations at Wareena 1.
The Company has also reported the deployment of its Early Oil Production System (the "Bengal EOPS") at the Caracal 1 production area in Australia's Cooper Basin. The successful commissioning of the Bengal EOPS - a mobile Lufkin "Road Runner" Pumping Unit - allows for oil production from Bengal's wells as well as being able to offer pumping services to third parties. Further evaluation is required to assess the commercial viability of the Caracal 1 well for long term oil production.
President and CEO, Chayan Chakrabarty, said: "We are encouraged by these results which are important incremental steps in the Company's advancement as an operator in the Cooper Basin. The two Wareena sites have now demonstrated they have natural gas. Assuming successful remediation, we will look forward to connecting these wells to our Wareena pipeline and making more gas available for both domestic consumption in the Australian market and for export to take advantage of the strong international market. While we wait on the future tie-in of the wells to the pipeline, our plan is to utilize Wareena gas production to commission our prototype early gas production system1, the Digital Mining Donga (DMD), to utilize early gas production in producing digital currency."
About Bengal
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia. The Company is committed to growing shareholder value through international exploration, production and acquisitions. Bengal's common shares trade on the TSX under the symbol "BNG". Additional information is available at www.bengalenergy.ca
CAUTIONARY STATEMENTS:
Forward-Looking Statements
This news release contains certain forward-looking statements or information ("forward-looking statements") as defined by applicable securities laws that involve substantial known and unknown risks and uncertainties, many of which are beyond Bengal's control. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words "plan", "expect", "future", "project", "intend", "believe", "should", "could", "anticipate", "estimate", "potential", "advance", "continue", "new", "develop", "build", "process", "current", "trend" or other similar words or statements that certain events "may" or "will" occur are intended to identify forward-looking statements. The projections, estimates and beliefs contained in such forward-looking statements are based on management's estimates, opinions, and assumptions at the time the statements were made, including assumptions relating to: the impact of economic conditions in North America and Australia and globally; industry conditions; changes in laws and regulations including, without limitation, the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the availability of qualified operating or management personnel; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility and fluctuation; results of exploration and testing activities, and the continued or anticipated performance of assets; and the ability to obtain required approvals and extensions from regulatory authorities. We believe the expectations reflected in those forward-looking statements are reasonable but, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bengal will derive from them. As such, undue reliance should not be placed on forward-looking statements.
In particular, forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's focus, plans, priorities and strategies; the Company's position in the business environment, particularly in the Australian business environment; the Company's interpretation of the initial results of the two Wareena sites, including, without limitation, the Company's view that the results are important incremental steps in its advancement as an operator in the Cooper Basin and that the results support the Company's plans for further interventions to increase gas flow; the Company's development plans for the Wareena sites, including, without limitation, the Company's intention to complete certain remediation work at both the Wareena 1 and Wareena 5 sites, the anticipated timing of such remediation work, and the anticipated benefits of such remediation work to Bengal and its stakeholders; the Company's ability to tie-in the Wareena wells and to bring the anticipated product to market; the Company's expectation that the Wareena 1 reservoir should be capable of flowing commercial volumes of natural gas following the anticipated remediation work; the Company's expectation that the successful commissioning of the Bengal EOPS will allow, and will continue to allow, oil production from Bengal's wells; the ability of the Company to offer pumping services to third parties in connection with the Bengal EOPS; and the anticipated benefits of the Bengal EOPS to the Company and its stakeholders and expectations regarding the interest from third parties in such.
The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Bengal's actual performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to, risks associated with: Bengal's development and exploration opportunities; the economic conditions in North America, Australia and globally; the impact of ongoing global events, including European tensions and the COVID-19 pandemic and the ability of the Company to carry on its operations as currently contemplated in light of the such events; the failure to obtain required regulatory approvals or extensions; determinations by OPEC and other countries as to production levels; the failure to satisfy the conditions under farm-in and joint venture agreements, and other third party contracts; the failure of third parties to performance their obligations under contracts with the Company; the failure to secure required equipment and personnel; increased competition; the availability of qualified operating or management personnel; fluctuations in commodity prices, foreign exchange or interest rates; changes in laws and regulations including, without limitation, the adoption of new environmental and tax laws and regulations and changes in how they are interpreted and enforced; the results of exploration and development drilling and related activities; the ability to access pipeline infrastructure; the ability to access sufficient capital from internal and external sources; and stock market volatility. The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. Additional information on these and other factors that could affect the Company are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this news release speak only as of the date hereof and Bengal does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be require pursuant to applicable securities laws.
Disclosure of Oil and Gas Information
Neither a pressure transient analysis or a well-test interpretation has been carried out respecting Wareena 1 or Wareena 5. As such, the foregoing data respecting these wells should be considered to be preliminary until such analysis or interpretation has been done. Note also that the foregoing data is not necessarily indicative of long-term performance or of ultimate recovery from such wells.
FOR FURTHER INFORMATION PLEASE CONTACT:
Bengal Energy Ltd.
Chayan Chakrabarty, President & Chief Executive Officer
(403) 205-2526
Jerrad Blanchard, Chief Financial Officer
(403) 781-7021
Email: investor.relations@bengalenergy.ca
Website: www.bengalenergy.ca
1 https://bengalenergy.ca/technology/early-gas-production-system/
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