Bengal Energy Announces a US $25 Million Secured Credit Facility

CALGARY, ALBERTA--(Marketwired - Aug. 14, 2014) - Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to announce that it has agreed on final credit approved terms for its US $25.0 million secured credit facility (the "Facility") with Westpac Institutional Bank ("Westpac" or the "Lender"). Bengal anticipates final closing of the Facility agreement to occur within the next three weeks subject to the satisfaction of the usual closing conditions, including a final due diligence review.

The Facility contemplates a borrowing base of up to US $25 million to be secured by the Company's producing assets in the Cuisinier field in Australia's Cooper basin, over a three year term at a commercial margin over USD Libor. Upon satisfaction of the Lender's final closing conditions, the Facility will be available and is expected to be utilized to fund the Cuisinier development, and for the prepayment of the Company's currently outstanding $8.0 million notes, which expire in July of 2016. The notes carry an annual coupon of 10% and a prepayment penalty of 3%.

"We are excited to enter into this credit facility with Westpac," said Chayan Chakrabarty, Bengal's President and CEO. "This credit facility will finance the Company's expanding development program in the Cuisinier field, and free up internally generated cash flows for its exploration opportunities in Australia and India. The relationship with Westpac, a premier Australian lender with a successful history in the Cooper basin, will provide the financial flexibly for the Company to meet its near and long-term growth objectives."

About Bengal

Bengal Energy Ltd. (TSX:BNG) is an international oil and gas exploration and production company with producing and prospective light oil‐weighted assets in Australia and India. Bengal offers exposure to lower risk, current production and cash flow, combined with longer‐term high, potential impact exploration projects. The Company's strategy is to achieve per share growth in cash flow, production and reserves while establishing an attractive portfolio of future drilling and exploration opportunities.

Additional information is available on our website at www.bengalenergy.ca.

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", "prospective", "project", "intend", "believe", "should", "anticipate", "estimate", 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, Australia, India 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 fluctuations in market valuations of companies with respect to announced transactions and the final valuations thereof; results of exploration and testing activities; 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. Forward-looking statements contained herein include, but are not limited to, statements regarding: the timing of satisfaction of closing conditions in relation to the Facility and funding to the Company; and the anticipated use of the initial draw down from the Facility.