Bengal Energy Announces Operational Update with Record Production and Expands Drilling Program

CALGARY, ALBERTA--(Marketwired - Oct. 1, 2014) - Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to announce that four of the 2014 Phase One Cuisinier oil wells have been tied-in and are producing, resulting in an additional preliminary gross production rate of approximately 1,100 barrels of oil per day ("bopd") or 334 bopd net to Bengal. Bengal's current total net production is approximately 650 bopd from Cuisinier, representing an 80% increase over the first quarter fiscal 2015 average production rate. Cuisinier is situated within Petroleum Lease "PL" 303 of Barta sub-block, Cooper Basin, southwest Queensland, Australia where Bengal holds a 30.357% working interest ("WI"). In light of the high quality oil produced at Cuisinier, Bengal's production commands a premium price over the Brent benchmark and contributes to industry leading operating netbacks.

"We are very pleased with the success of our 2014 Phase One drilling program to date," said Chayan Chakrabarty, Bengal's President and CEO. "Not only have we significantly increased our production relative to the first quarter of fiscal 2015, but we have also set a new production record for Bengal. With this higher production rate coupled with strong netbacks, we are very well positioned to generate attractive cash flows. This cash flow stream will support our recently expanded Phase Two drilling program, which features plans to drill up to nine additional wells in Cuisinier in the coming six months. We look forward to keeping our shareholders updated as we undertake the next phase of development within this exciting, high value asset."

EXPANDED CUISINIER DRILLING PROGRAM

As a result of the successful Phase One drilling campaign, the Barta Joint Venture ("JV") is considering the expansion of the Phase Two Cuisinier drilling campaign, which is expected to commence in November 2014. The expanded program would be comprised of two development and three appraisal wells in the Cuisinier Field, with the JV considering an additional two to three wells in and around PL 303 based on the results of the initial five well program. The proposed expansion of the Phase Two drilling campaign is a reflection of the success realized in Phase One, which has provided valuable information that has enabled the JV to high-grade subsequent locations with a view to enhancing productivity and expanding the boundaries of the pool.