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Last updated on April 16, 2014 at 13:58 EDT

Bengal Energy Announces Year End Fiscal 2013 Results

June 17, 2013

CALGARY, June 17, 2013 /CNW/ – Bengal Energy Ltd. (TSX: BNG) (“Bengal” or the “Company”) today announces its financial and operating
results for the fiscal year ended March 31, 2013.

FISCAL YEAR END & FOURTH QUARTER 2013 HIGHLIGHTS:

2013 was an active and successful period for Bengal, evidenced by the
continued growth in our production, reserves and revenue, as well as
the achievement of several important milestones which further advance
our progress and set the stage for future expanded development. 
Highlights from the 2013 fiscal year and fourth quarter follow:

        --  Q4 Production increased 216%:  Corporate production in the
            fourth quarter averaged 325 barrels of oil equivalent per day
            (boe/d), an increase of 216% over 103 boe/d for the same period
            in 2012.  Average annual production of 170 boe/d in 2013
            increased by 26% over the 135 boe/d during fiscal 2012.  These
            increases are directly attributable to production growth from
            wells in the Cuisinier oil pool located on the Barta sub-block
            of ATP752 in the Cooper Basin, Queensland, Australia.
        --  Q4 Revenue increased 384%: Reported revenue for the fourth
            quarter was $3.0 million, compared to $0.6 million for the same
            quarter in 2012.  For fiscal year 2013, reported revenue
            totaled $5.9 million, 37% higher than the $4.3 million reported
            for the same period the prior year.
        --  Q4 Netbacks of $69.93/boe:  During the fourth quarter, Bengal
            realized operating netbacks of $69.93/boe, an increase of 156%
            compared to $27.27/boe for the same quarter in 2012. Full year
            2013 average realized operating netbacks were $58.61, an
            increase of 28% relative to $45.72/boe realized in fiscal
            2012.  These strong netbacks reflect the strength of the Brent
            benchmark crude oil price used in Australia, coupled with
            attractive royalty rates and declining operating /
            transportation expenses in Australia.
        --  Reserves (2P) up by 167%:Independent third party year-end
            reserves evaluation to March 31, 2013 have shown a 167%
            increase year-over-year in the corporate proved plus probable
            ("2P") reserves, driven by a 260% increase in 2P reserves at
            Cuisinier.  Based on 2P reserve additions, the Company replaced
            approximately 18 times its annual 2013 production to March 31,
            2013.  These reserve additions do not reflect the 5 recently
            drilled wells at Cuisinier.  Detailed reserves disclosures will
            be included in Bengal's 2013 Annual Information Form to be
            filed on SEDAR at
            www.sedar.com.
        --  100% Drilling Success Rate to date in Cuisinier: A total of 13
            wells to date have been drilled and cased as oil producers with
            100% success in Cuisinier. Eight of these 13 wells are
            currently producing.
        --  New Oil Discovery & Significant Farm-in for Tookoonooka:  The
            Company's first exploration well in the Tookoonooka drilling
            campaign, Caracal-1, resulted in a new light oil discovery.
            Subsequent to year end, Bengal signed a Binding Letter of
            Intent (the 'LOI') to form a strategic joint venture in
            Tookoonooka with Australia-based Beach Energy Ltd., which will
            see Beach fund the drilling of two wells and the acquisition of
            an additional 300 km2 of 3D seismic (up to AUD $11.5 million).
        --  Strong Financial Position:  With the successful issuance of
            $3.5 million in convertible and non-convertible notes in
            January 2103 (maturing in January 2014), the completion of a
            $5.7 million equity financing in April 2013, and the recent
            joint venture in Tookoonooka, the Company is in a strong
            financial position to undertake its nearer-term exploration
            plans and fulfill near-term work program commitments.
        --  Strategic Milestones Met:  Just after the end of the fiscal
            year, the final approval of Petroleum Lease 303 ("PL303") for
            the Cuisinier oil pool was granted, which allows all current
            and future Cuisinier wells to produce for up to 21 years.  Also
            after year end, the Cuisinier to Cook liquids pipeline was
            commissioned enabling production to be delivered to sales
            points through a pipeline, rather than trucking, which expands
            the area's productive capacity and facilitates more stable
            production volumes.

For a discussion of the activities on each of the Company’s permits,
refer to Bengal’s management’s discussion and analysis for the year
ended March 31, 2013 filed on SEDAR at www.sedar.com.

FINANCIAL & OPERATING HIGHLIGHTS


    $000s except per           Three Months Ended                Twelve Months Ended
    share, volumes                       March 31                           March 31
    and netback
    amounts                                                                        %
                         2013      2012  % Change             2013      2012  Change

    Revenue                                                                         

      Oil            $  2,946 $     547       439 $          5,669 $   3,908      45

      Natural gas          67        59        14              172       310    (45)

      Natural gas           -        16         -               44        68    (35)
      liquids

      Total             3,013       622       384            5,885     4,286      37

    Royalties             271        56       384              526       394      34

      % of revenue        9.0       9.0         -              8.9       9.2     (3)

    Operating &           694       312       122            1,726     1,636       6
    transportation

    Netback(1)          2,048       254       706            3,633     2,256      61

    Cash from (used       119       486                      (703)   (1,142)    (24)
    in) operations:                         (109)

      Per share ($)    (0.00)      0.01     (100)           (0.01)    (0.02)       -
      (basic &
      diluted)

    Funds from (used
    in) operations:
    (2)                 1,151     (635)     (270)            1,099   (1,459)   (170)

      Per share ($)      0.02    (0.01)                       0.02    (0.03)   (167)
      (basic &                              (300)
      diluted)

    Net (loss):         (592)   (1,424)                    (1,799)   (7,209)    (75)
                                             (56)

      Per share ($)    (0.01)    (0.03)      (67)           (0.03)    (0.14)    (71)
      (basic &
      diluted)

    Capital          $  1,280 $   2,233      (23)           28,381    10,838     166
    expenditures

    Volumes                                                                         

      Oil (bbl/d)         287        50       474              138        90      53

      Natural gas         229       304      (25)              180       254    (29)
      (mcf/d)

      Natural gas           -         2     (100)                2         3    (33)
      liquids
      (boe/d)

      Total (boe/d @      325       103       216              170       135      26
      6:1)

    Netback(1)
    ($/boe)

      Revenue        $ 102.88 $   66.62        54 $          94.95 $   86.80       9

      Royalties          9.25      6.02        54             8.49      7.97       7

      Operating &       23.70     33.33      (29)            27.85     33.12    (16)
      transportation

      Total          $  69.93 $   27.27       156 $          58.61 $   45.72      28

    (1) Netback is a non-IFRS measure. Netback per boe is calculated by
        dividing the revenue and costs in total for the Company by the
        total production of the Company measured in boe.

        Funds from operations is a non-IFRS measure. The comparable IFRS
    (2) measure is cash from operations. A reconciliation of the two
        measures can be found in the table on page 7.

Bengal has filed its consolidated financial statements and management’s
discussion and analysis for the year ended March 31, 2013 with Canadian
securities regulators. The documents are available on SEDAR at www.sedar.com or by visiting Bengal’s website at www.bengalenergy.ca.

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration
and production company with assets in India and Australia. 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 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 Tookoonooka joint venture;
Beach’s obligations under the LOI and the funding and completion of the
drilling and seismic work program. 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 regulatory approvals or extensions; failure to satisfy
the conditions under the LOI; 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; 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.

Barrels of Oil Equivalent
When converting natural gas to equivalent barrels of oil, Bengal uses
the widely recognized standard of 6 thousand cubic feet (mcf) to one
barrel of oil (boe). However, a boe may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.

Certain Defined Terms
boe – barrels of oil equivalent
boe/d – barrels of oil equivalent per day
bbl – barrel
bbl/d – barrels per day
mcf – thousand cubic feet
mcf/d – thousand cubic feet per day 

Non-IFRS Measurements
Within this release references are made to terms commonly used in the
oil and gas industry. Funds from operations, funds from operations per
share and netbacks do not have any standardized meaning under
International Financial Reporting Standards (IFRS) and previous
generally accepted accounting principles (GAAP) and are referred to as
non-IFRS measures. Funds from operations per share is calculated based
on the weighted average number of common shares outstanding consistent
with the calculation of net income (loss) per share. Netbacks equal
total revenue less royalties and operating and transportation expenses
calculated on a boe basis. Management utilizes these measures to
analyze operating performance. The Company’s calculation of the
non-IFRS measures included herein may differ from the calculation of
similar measures by other issuers. Therefore, the Company’s non-IFRS
measures may not be comparable to other similar measures used by other
issuers. Funds from operations is not intended to represent operating
profit for the period nor should it be viewed as an alternative to
operating profit, net income, cash flow from operations or other
measures of financial performance calculated in accordance with IFRS.
Non-IFRS measures should only be used in conjunction with the Company’s
annual audited and interim financial statements.

SOURCE Bengal Energy Ltd.


Source: PR Newswire