Last updated on April 18, 2014 at 13:14 EDT

Bengal Energy to Form Strategic Joint Venture with Beach Energy Ltd. for Cooper Basin Exploration and Development Program

May 23, 2013

Beach to fund 100% of an AUD$11.5 million drilling and 3D seismic
program to earn 50%

CALGARY, May 23, 2013 /CNW/ – Bengal Energy (TSX: BNG) (“Bengal“, or the “Company“) is pleased to announce that it has agreed to form a strategic joint
venture (the “JV”) for the exploration and development of its 100%
owned Tookoonooka Block (“ATP 732″) in the Cooper Basin of Australia
with Beach Energy Ltd. (“Beach”), an Australian energy company (ASX:


        --  Beach will fund Bengal's share of a two well drilling and 3D
            seismic exploration and appraisal work program (the "Work
            Program") to a maximum of AUD$11.5 million, in order to acquire
            a 50% interest in ATP 732;

        --  Bengal will have the benefit of Beach's extensive exploration,
            appraisal and development capability while maintaining a 50%
            interest in this large permit;

        --  Through the JV, Bengal is working with a major operator in the
            Cooper Basin with current programs in oil and unconventional
            gas exploration. This provides an excellent platform for future
            exploration success and commercialization for ATP 732;

        --  The JV demonstrates a continuation of Bengal's overall strategy
            in the Cooper Basin:  directing cash flow generated from
            Cuisinier oil production to support its ongoing field
            development, while simultaneously delivering a focused
            exploration and appraisal plan for conventional and
            unconventional projects in ATP 732.

“This JV is a significant milestone for Bengal and validates the work we
have done in ATP 732 to date,” said Chayan Chakrabarty, Bengal’s
President & CEO.  “Working with Beach, a leader in Cooper Basin oil and
gas exploration, development and production, will allow us to
accelerate exploration and appraisal work in ATP 732 while preserving
balance sheet strength, and continuing to execute on our overall Cooper
Basin strategy.”

Bengal’s strategically located ATP 732 tenement covers over 2,600 km(2) (654,000 acres) of the east flank Cooper Basin oil & gas fairway, and
contains the Caracal-1 well, which has been cased as a potential future
oil producer.  ATP 732 is attractively situated with significant oil
and natural gas production and infrastructure surrounding it, as
indicated on the map available in the PDF version of this press
release, available at the following link: www.bengalenergy.ca/investor/press_releases.php.

The Work Program will involve two exploration/appraisal wells (at
locations yet to be finalized but the first well is expected to be in
the vicinity of Caracal-1), as well as a 300 km(2) 3D seismic program across prospective adjoining areas of the permit.
The Work Program is expected to be completed within 12-18 months.
Bengal will retain operatorship through to the completion of the Work
Program.  Beach will manage the Work Program on behalf of Bengal and
upon completion will have the right to become operator of the JV.

“This transaction continues Beach’s focus on building its footprint in
the Cooper Basin where the majority of the Company’s production is
derived.  It also provides the opportunity for Beach to apply its
highly successful Cooper Basin oil exploration and operational
experience to the Tookoonooka area.  We look forward to working with
Bengal to further unlock the potential of this underexplored area of
the Cooper Basin” said Beach’s Managing Director Mr. Reg Nelson.

Commencement of the JV is subject to certain conditions which are
customary for this type of transaction, including, without limitation,
regulatory approval, legal due diligence and finalizing a definitive
farm-in agreement and joint operating agreement.  Bengal and Beach
anticipate finalizing such agreements prior to July 31, 2013.

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration
and production company based in Calgary, Alberta. The Company is
committed to growing shareholder value through international
exploration, production and acquisitions. Bengal trades on the TSX
under the symbol BNG. Additional information is available 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, without limitation, 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; 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 terms of the JV and the
Work Program; Bengal’s access to Beach’s exploration, appraisal and
development capability; the benefits of the JV; the timing of the final
farm-in agreement and joint operating agreement; and receipt of
regulatory approvals.  The forward looking statements contained herein
are subject to numerous known and unknown risks and uncertainties that
may cause Bengal’s actual financial results, performance or achievement
in future periods to differ materially from those expressed in, or
implied by, these forward-looking statements, including but not limited
to, risks associated with: the failure to obtain required safety
assessments and rig acceptance; failure to secure required equipment
and personnel; changes in general global economic conditions including,
without limitations, the economic conditions in North America,
Australia, India; increased competition; the availability of qualified
operating or management personnel; fluctuations in commodity prices,
foreign exchange or interest rates; changes in laws and regulations
including, without limitation, the adoption of new environmental and
tax laws and regulations and changes in how they are interpreted and
enforced; the results of exploration and development drilling and
related activities; the ability to access sufficient capital from
internal and external sources; failure to obtain or delays in obtaining
regulatory approvals; delays or changes in planned operations;
operational risks associated with exploration, development and
production; a failure to finalize the farm-in agreement and joint
operating agreement for the JV; the results of geological, geophysical
and reservoir analysis; results of drilling and seismic activities; 
results of due diligence investigations; and stock market volatility. 
Readers are encouraged to review the material risks discussed in
Bengal’s Annual Information Form under the heading “Risk Factors” and
in Bengal’s annual MD&A under the heading “Risk Factors”.  The Company
cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive.  The forward-looking statements
contained in this news release speak only as of the date hereof and
Bengal does not assume any obligation to publicly update or revise them
to reflect new events or circumstances, except as may be require
pursuant to applicable securities laws.

SOURCE Bengal Energy Ltd.

Source: PR Newswire