Bengal Energy Announces Operational Update with Record Production and Expands Drilling Program - Seite 2

The drilling campaign will also include one exploration well ("Wicho East-1") in ATP 752P - Barta Sub-block. The Wicho East prospect is approximately 8 kilometres north east of PL 303 and it will target oil in sands within the basal Jurassic and Hutton sequences

OPERATIONAL UPDATE

Cuisinier Operations

In late July 2014, the Operator of the JV (Santos Limited) successfully upsized the pump in the Cuisinier-7 well, which has resulted in an initial 71% increase in incremental gross production of 210 bopd, calculated on a stream day basis. The Cuisinier-7 well averaged approximately 295 bopd in July and increased to 504 bopd during the month of August. In addition, the JV is currently planning a hydraulic stimulation review for certain candidate wells within the field. To date, none of the Cuisinier wells have been stimulated, which represents future optimization opportunities for the JV.

In addition the Company and JV are planning to commence remediation work in the very near term to address the previously announced unexpected production declines that have been observed from Cuisinier-6, due to an increase in water cut. The Operator plans to conduct production logging in the well to determine the source of the water, followed by the implementation of an appropriate remediation strategy.

Wompi Exploration Well

In the Wompi Sub-block (ATP 752 - WI 38%), the JV is planning to drill one exploration well in calendar Q4 2014 targeting the Birkhead, Westbourne and Adori formations, with such formations being known to produce in the offsetting Bowen Field, located immediately north of the proposed location. Wompi offers Bengal moderate risk exploration in a well-established, oil-producing fairway offering multi-zone potential.

Tookoonooka Exploration Well

In Bengal's Tookoonooka permit (ATP 732 - WI 50%), which is located in the emerging East Flank oil fairway of the Cooper Basin, the Company is partnered with Beach Energy Ltd. ("Beach"). Beach completed the acquisition of 300 km² of 3D seismic over Tookoonooka in February 2014 with data processing currently underway. Subject to the seismic interpretation, the second farm-out exploration well is planned for early calendar 2015.

ONSHORE INDIA

As previously announced, in Bengal's onshore India block situated within the Cauvery Basin (CY-ONN-2005/1 - 30% WI), the Company continues to coordinate with its partners, Gas Authority of India Ltd. ("GAIL") and Gujarat State Petroleum Corporation ("GSPC") for the drilling of three exploration wells. The commencement of this exploration drilling program has been delayed as GAIL, the operator, continues to negotiate with various stakeholders and government bodies that provide the necessary approvals to proceed. The drilling of the first of three exploration wells is, at the earliest, expected to commence following the monsoon season in calendar Q2 2015.