Bengal Energy has been awarded a 100% working interest in Exploration Permit AC/P47, a 3,485 square kilometer offshore block located in the Timor Sea on the Northwest Shelf of Australia. AC/P47 has been penetrated by only one well, drilled in 1973 downdip and off-structure of what appears to be a large area of structural closure encompassing high quality Triassic reservoir rocks. Bengal estimates this structure to be up to 90 square kilometers in area and 150 meters thick. As well, additional leads and prospects are evident on the Permit, including another structural closure of similar size. The Vulcan Graben to the east is an established producing area where the existence of oil-prone hydrocarbon-source beds is believed responsible for the light oil accumulations in this part of the Northwest Shelf. Based on mapping from a grid of existing seismic data, Bengal believes that there is a reasonable probability of equivalent light oil source strata extending to the flanks of AC/P47. Located on the Ashmore Platform, most of the Permit appears to have water depth of less than 400 meters, varying between 50 meters and 900 meters which is within conventional water drilling depths in this area.

“The award of permit AC/P47 signifies another important milestone in Bengal’s growth and demonstrates that the new technical efforts undertaken by the Company for the internal generation of leads and prospects are now bearing valuable results,” said Bradley Johnson, Chairman and CEO of Bengal. “Through the middle of last year, we reviewed 17 offshore blocks put on offer by the Australian Government and elected to focus on this block. AC/P47 is located approximately 150 kilometers west of the productive Vulcan Graben where our AC/P24 offshore permit, including the Katandra light oil discovery, is situated. We want to emphasize that Bengal has acquired the Permit at 100% Working Interest to enable the Company to carefully manage its technical plans and expenditures at its own discretion, in the interests of shareholders.”

The Permit will have an initial six year term, divided into two three-year phases. The first year of the program involves reprocessing of 985 square kilometers of two-dimensional marine seismic data. In years two and three, Bengal has committed to acquire and process a 750 square kilometer three-dimensional seismic survey. The commitments in this initial three-year phase are estimated to total AU$11 million. After the first three-year phase, Bengal has the option of either relinquishing the Permit or committing on a year-by-year basis to the subsequent three-year phase of the work program. This second phase has an estimated cost of AU$28 million and involves planning, drilling and evaluating one offshore exploration well with a depth of approximately 2,600 meters. Bengal will prudently manage costs throughout the program and will consider bringing in one or more partners as warranted.

Tags: Bengal Energy