Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") announces that Beach Energy Ltd. ("Beach") has completed drilling operations at Tangalooma-1, the first of two fully funded exploration wells to be drilled in Bengal's Tookoonooka block within Australia's Cooper Basin under the Beach joint venture (the "JV"). The well failed to define a commercial hydrocarbon accumulation and has been plugged and abandoned.
Under the terms of the JV, Beach will fully fund the drilling of two exploration wells, and the acquisition of 300 km2 of new 3D seismic in Tookoonooka up to a total maximum value of AUD$11.5 million. The seismic acquisition is currently ongoing and anticipated to continue through the end of January 2014. Upon completion, a comprehensive interpretation process will be undertaken to identify future drilling locations, including the location for the second well that Beach will drill to fulfill the terms of the JV. Bengal will provide updates on the 3D seismic process as well as the selection of the second drilling location in the second calendar quarter of 2014.
"Bengal remains very optimistic about the potential of our Tookoonooka block, and is pleased to benefit from Beach's extensive experience operating in the Cooper Basin," said Chayan Chakrabarty, President & CEO of Bengal. "Our JV allows us to further advance evaluation at Tookoonooka while minimizing risk and maintaining our balance sheet strength."
