Bengal Energy Finalizes US $25 Million Secured Credit Facility and Announces Redemption of 10% Non-Convertible Notes

CALGARY, ALBERTA--(Marketwired - Oct. 24, 2014) - Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to announce the closing of its US $25.0 million secured credit facility (the "Facility") with Westpac Institutional Bank. The Facility is secured by the Company's producing assets in the Cuisinier field in Australia's Cooper Basin over a three-year term. In advance of the initial draw, Bengal will initiate a program to hedge approximately 280,000 barrels of oil over the term of the loan. The Company anticipates the initial draw will occur before October 31, 2014 and will be used to finance Phase 2 of the 2014 Cuisinier drilling program set to commence in November 2014.

The Company will also utilize the Facility to fund the redemption price of the $7.5 million principal amount of the Company's 10% outstanding unsecured non-convertible redeemable notes (the "Notes"). Bengal has issued a notice of redemption to holders of the Notes pursuant to which Bengal will redeem the Notes, effective November 24, 2014 (the "Redemption Date") for a redemption price equal to $1.03 per $1.00 of outstanding principal amount of the Notes plus all accrued and unpaid interest thereon to but excluding the Redemption Date, for an aggregate redemption price for the Notes of $7,838,014.

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 hedging conditions and timing for initial first draw by the Company; the anticipated use of the initial draw down from the Facility;