Bengal Energy unveils development plan for Queensland’s oil prospect

In a strategic move set to impact the Australian energy sector, Bengal Energy Ltd. (TSX: BNG) announced the completion of its Field Resource Maturation and Development Plan (“Plan”) for its Tookoonooka Potential Commercial Area (“PCA”) 332 (“PCA 332“). This plan signifies a pivotal step in harnessing the untapped potential of PCA 332, which spans a prospect area of 343 km² and enjoys a 100% working interest by Bengal.

The highlights of the Plan outline a roadmap for the exploration and development of up to 15 independent multi-horizon prospects, including the Tigris-1 oil opportunity. The strategic significance of Tigris-1 lies in its potential to kickstart a multi-well development program, should drilling efforts prove successful. This optimism is further bolstered by analogues in the nearby Tintaburra and Toobunyah fields, which exhibit production rates of up to 1,500 barrels of oil per day from the Hutton zones, and between 200 to 500 barrels per day from the Wyandra zones.

Bengal has also taken proactive steps to ensure the operational readiness of PCA 332, with fully paid and installed oil sales infrastructure facilitating immediate egress through trucking, underpinned by an established sales and transportation agreement with Inland Oil Refinery (“IOR”), located within 62 km via a hard-sealed road.

A critical aspect of the Plan’s execution hinges on securing adequate financing, a pursuit currently underway through potential farm-in partnerships and other financing arrangements. Chayan Chakrabarty, Bengal’s President & CEO, expressed confidence in the project’s prospects, emphasizing the combination of significant crude oil resources, favourable oil pricing, and Bengal’s operational expertise as key drivers for focusing on the development of PCA 332.

Granted a 15-year term effective January 30, 2023, PCA 332 is poised for exploration within the Southeast Cooper oil province of Queensland, Australia. A comprehensive 3D seismic survey covering approximately 64% of PCA 332 has revealed 15 high-impact prospects across multiple geological zones, underlining the extensive preparatory work undertaken by Bengal.

The Plan earmarks the Tigris-1 oil opportunity as a drill-ready prospect, capable of testing multiple reservoir targets. Successful drilling at Tigris-1 could pave the way for a long-term production test and, contingent upon commercial viability, the pursuit of a Petroleum License to secure the acreage for up to 30 years.

The Resource Report by ERCE, detailing prospective resources across Bengal’s Cooper Basin license acreage, further solidifies the project’s foundation, highlighting potential resources ranging from 3.2 million barrels to a high estimate of 37.1 million barrels.