Welcome!

.NET Authors: ITinvolve Blog, Srinivasan Sundara Rajan, Sematext Blog, Aditya Banerjee, Jayaram Krishnaswamy

News Feed Item

Bengal Energy Announces Fiscal Q2 2013 Results

Drilling Results Set Stage for Production Growth

TSX: BNG

CALGARY, Nov. 12, 2012 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today announced its financial and operating results for the three and six months ended September 30, 2012. The Company focused on drilling during the quarter, spending $10 million to pursue its successful drilling program in Australia.

FISCAL Q2 2013 HIGHLIGHTS:

  • 100% Drilling Success at Cuisinier:  Since March 2012, Bengal has drilled four oil producers, resulting in a drilling success rate of eight for eight in the Cooper Basin of Australia. The Company is currently producing 325 barrels of oil per day (bopd) (net to the Company) from two of the newly drilled wells, under Extended Production Test, while certain regulatory and capacity constraints limit full production from all the wells.  The following presents the current status of the Company's Cuisinier wells.

    The Company is currently trucking its production to a nearby terminal.  The operator of the field is progressing plans for facilities upgrades and pipeline connection to a large facility at an adjacent field that should handle production from all wells in the field. The operator is also applying for a Petroleum Lease ("PL") that will allow all the wells in the field to produce at their productive capacities.  The Company expects regulatory approval and facilities upgrades to be completed in the quarter ending June 30, 2013.
Well Productive Capacity
(Net to Bengal)
Status
Cuisinier 1, 2 and 3 125 bopd (aggregate) Shut-in, awaiting Petroleum Lease
Cuisinier 4 125 bopd Shut-in, awaiting tie-in
Cuisinier 5 and 6 325 bopd (aggregate) Production Test
Barta North and Cuisinier North 1 75 bopd (aggregate) Shut-in awaiting tests and tie-in
Total 650 bopd  
  • Cuisinier Reserves Increase Substantially:  An independent reserves update of the quantity of oil reserve volumes contained on Company lands within the boundaries of the Barta sub-Block, of Authority to Prospect ("ATP") 752 onshore Australia in the Cooper/Eromanga Basins in the State of Queensland effective September 30, 2012, prepared by GLJ Petroleum Consultants Ltd. recognized 717,000 proved barrels (an increase of 904%), 1,550,000 proved plus probable barrels (an increase of 269%) and 7,512,000 proved plus probable plus possible barrels (an increase of 614%) to Bengal. The net present values discounted at 10% amount to $16 million for proved, $37 million for proved plus probable and $164 million for proved plus probable plus possible.

  • Company's New Rig Drills First Well at Tookoonooka:  The Company's recently purchased drilling rig, Bengal 1, has been fully commissioned and, on October 5, 2012 commenced drilling of the first well on the Company's 100% owned ATP 732P Permit ("Tookoonooka") in the Cooper Basin. The first exploration well in the Company's Tookoonooka drilling campaign, Caracal-1, has been cased as a potential oil producer awaiting testing results.

  • Bengal Reports Financial Results: The Company reported that revenues in the three and six months ended September 30, 2012 amounted to $437,000 and $935,000, respectively compared to $1,017,000 and $2,336,000 respectively in 2011. The lower revenues resulted from production reductions primarily related to expiration of Extended Production Tests for the Cuisinier 1, 2 and 3 wells; as mentioned earlier, the regulatory approvals (expected in the quarter ending June 30, 2013) will allow all the wells in the Cuisinier Field to produce at their productive capacities. The net loss for the three and six month periods amounted to ($845,000) or ($0.02) per share and ($1,056,000) or ($0.02) per share, respectively compared to ($4,247,000) or ($0.08) per share and ($5,308,000) or ($0.10) per share, respectively. The 2011 losses were impacted by an impairment loss related to the drilling of two dry holes in 2011 and 2008. The Company spent $10,299,000 in the three-month period ended September 30, 2012 and $17,625,000 in the six month period ended September 30, 2012 related to the drilling of four Cuisinier wells, the acquisition of the Rig, seismic acquisition in Australia and India and preparation for drilling the Caracal-1 well.

For more information on the Company's operational activities and permits, refer to Bengal's website at www.bengalenergy.ca.

Financial and Operating Summary

             
$000s except per share, volumes
and netback amounts
Three Months Ended
September 30
Six Months Ended
September 30
2012 2011 %
Change
2012 2011 %
Change
Revenue            
  Natural gas       $  31       $  67 (54)       $  70       $  159 (56)
  Natural gas liquids              19               13 46   45   29 55
  Oil              387              937 (59)   820   2,148 (62)
  Total              437              1,017 (57)   935   2,336 (60)
Royalties              38              95 (60)   83   216 (62)
  % of revenue              8.7              9.3 (7)   8.9   9.2 (3)
Operating & transportation              162              316 (49)   409   838 (51)
Netback(1)              237               606 (61)   443   1,282 (65)
Cash from (used in) operations:              315               159 (98)   (444)   (1,212) (63)
  Per share ($) (basic & diluted)   0.01              0.00 -   (0.01)   (0.02) (50)
Funds from (used in) operations:(2)        (471)              (430) 10   (533)   (423) 26
  Per share ($) (basic & diluted)   (0.01)              (0.01) -   (0.01)   (0.01)
Net (loss):        (845)              (4,247) (80)   (1,056)   (5,308) (80)
  Per share ($) (basic & diluted)   (0.02)              (0.08) (75)   (0.02)   (0.10) (80)
Capital expenditures $  10,299       $  2,407             328        $ 17,625       $  4,340 306
Volumes                                              
  Natural gas (mcf/d)              159              196 (19)   192   221 (13)
  Natural gas liquids (boe/d)              3              3 -   4   3 33
  Oil (bbl/d)               35              94 (63)   41   100 (59)
  Total (boe/d @ 6 mcf:1 bbl)              65              130 (50)   77   140 (45)
Netback(1) ($/boe)                    
  Revenue       $  73.90       $  86.21 (14)       $  67.02       $  91.20 (27)
  Royalties              6.43              8.01 (20)              5.95              8.42 (29)
  Operating & transportation              27.40              26.78 2              29.32              32.70 (10)
  Total       $  40.07       $  51.42 (22)       $  31.75       $  50.08 (37)

(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.
(2)  Funds from operations is a non-IFRS measure. The comparable IFRS measure is cash from operations. A reconciliation of the two measures can be found in Bengal's management's discussion and analysis for the quarter ended September 30, 2012.
   

Bengal offers an attractive portfolio of both lower-risk and high-impact drilling opportunities. Increasing production from new wells drilled at Cuisinier is expected to drive operating income and set the stage for future development. Potential near-term exploration drilling success on permit ATP 732P could create further momentum. The Company also offers long-term plays in India to potentially add value in 2013 and onward. The Company will continue to evaluate accretive production acquisition, exploration and corporate transaction opportunities within and around the Company's core areas.

Bengal has filed its consolidated financial statements and management's discussion and analysis for the quarter ended September 30, 2012 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 Australia and India. 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, extensions, permits and leases from regulatory authorities. We believe the expectations and assumptions 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: facility upgrades and pipeline tie-ins and the impact thereof; the application for the PL, including the timing and impact thereof; the timing of receipt of regulatory approvals and the impact thereof; impact of Cuisinier production on operating income; impact of drilling success on the ATP 732P. 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, or leases; 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; imprecision of reserve and resource estimates; unexpected decline rates in wells; wells not performing as expected; 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.

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.