Bengal Energy Secures Permit for Hydrocarbon Exploration and Development in Cooper Basin

Calgary, Alberta--(Newsfile Corp. - February 2, 2023) - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") has been awarded Potential Commercial Area (PCA) 332 over an area of 343 square kilometers that was previously covered by Bengal's Authority to Prospect ("ATP") 732. The grant of PCA 332 provides a 15-year term with no relinquishments and allows the Company to continue to pursue the development of its highly prospective oil and gas portfolio in Queensland's Cooper Basin.

The appraisal permit, granted by the Queensland Government in record time, provides much-needed certainty for Bengal to focus on its hydrocarbon projects in the Talgeberry-Tintaburra corridor. The majority of PCA 332 is covered by 3D seismic.

With the ATP 732 due to expire in March 2023, CEO Chayan Chakrabarty said the speedy processing of the permit came at the right time.

"PCA 332 will enable us to develop and commercialise the 16 drilling locations we have uncovered in the corridor under the PCA. We have been making significant progress on this currently non-producing block preparing for larger scale production, and the PCA will allow us to continue that development. The prospectivity of this portion of ATP 732 was described in detail through the Company's March 30, 2022 Press Release – Bengal Energy Announces Independent Oil and Natural Gas Resource Report."

Three of the 16 locations are drill-ready, and the Company is currently seeking investment towards drilling on these locations through equity financing and farm-out. Bengal has invested upfront into innovative ways to accelerate the commercialisation of found hydrocarbons, including the implementation of its new technology to assess resource streams as early as possible.

"Our Roadrunner, or Early Oil Production System, has been commissioned to assess new well sites for their potential, reducing the amount of time elapsed before generating cashflow and right-size the capacity of permanent facilities," Mr. Chakrabarty said.

Bengal has recently reached an offtake agreement with the Eromanga Oil Refinery (IOR operated) for any crude oil produced from PCA 332. The 52 API Caracal crude has a high diesel content which makes it particularly suited to IOR.

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia. The Company is committed to growing shareholder value through international exploration, production, and acquisitions. Bengal's common shares trade 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", "future", "project", "intend", "believe", "should", "could", "anticipate", "estimate", "potential", "advance", "continue", "new", "develop", "build", "process", "current", "trend" 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 and Australia 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 fluctuation; results of exploration and testing activities, and the continued or anticipated performance of assets; 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.

In particular, forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's focus, plans, priorities, and strategies; the Company's expectations regarding the prospectivity of its oil and gas portfolio in Queensland's Cooper Basin, the Company's expectation that it will be able to develop and commercialise the 16 drilling locations in PCA 332; the impact of our Early Oil Production System; and that PCA will allow Bengal to pursue larger scale production.

The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Bengal's actual 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: Bengal's development and exploration opportunities; the economic conditions in North America, Australia and globally; the impact of ongoing global events, including the Ukrainian conflict and the ability of the Company to carry on its operations as currently contemplated in light of the such events; the failure to obtain required regulatory approvals or extensions; determinations by OPEC and other countries as to production levels; the failure to satisfy the conditions under farm-in and joint venture agreements, and other third party contracts; the failure of third parties to performance their obligations under contracts with the Company; the failure to secure required equipment and personnel; 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 pipeline infrastructure; the ability to access sufficient capital from internal and external sources; and stock market volatility. The Company cautions that the foregoing list of assumptions, risks, and uncertainties is not exhaustive. Additional information on these and other factors that could affect the Company are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). 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 required pursuant to applicable securities laws.

Drilling Locations

This news release discloses "drill-ready" drilling locations with respect to the PCA 332 derived from the Resource Report prepared by ERC Equipoise, Perth evaluating the oil, natural gas liquids, and natural gas Resources of the Corporation as at March 20, 2022, and account for drilling locations that have associated resources. The drilling locations considered for future development will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil, and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained, and other factors.

FOR FURTHER INFORMATION PLEASE CONTACT:

Bengal Energy Ltd.
Chayan Chakrabarty, President & Chief Executive Officer
(403) 205-2526
Jerrad Blanchard, Chief Financial Officer
(403) 781-7021
Email: investor.relations@bengalenergy.ca
Website: www.bengalenergy.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/153291