Bengal purchases drilling rig and provides update on summer drilling program in Australia
Friday, Apr 06, 2012CALGARY, April 5, 2012 /CNW/ - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to provide the following updates on the Company's ongoing operational activities in Australia.
To facilitate its drilling plans, the Company has purchased an Ideco H-44
drilling rig (the "Rig") and its associated equipment for initial use in its
2012 exploratory drilling program on the Company's 100% owned and operated permit ATP 732P Tookoonooka ("ATP 732") in the Cooper/Eromanga Basin of Queensland, Australia. The Rig is a 750 HP carrier-mounted Double with a depth capability of 3,000m utilizing 3-1/2" drill pipe. The Company is excited by the opportunity to deploy the Rig into its ATP 732 exploratory drilling campaign and also to have the Rig available, when not in use by Bengal, for potential future business development opportunities in the Basin. Its possession gives Bengal a ital strategic advantage over its competition in an environment where drilling
services are costly and often difficult to procure.
The purchase price of the Rig is US $1.75 million plus additional costs of
approximately US $1.0 million to buy certain ancillary equipment required for drilling operations and to pay for Rig mobilization from its current location in Dubai, UAE to Brisbane, Queensland. Mobilization operations are currently underway, with the Rig expected to be landed and operational in Queensland in time for the Company's upcoming Q3 2012 drilling program on ATP 732.
The Company is also pleased to announce it has entered into a consulting agreement with The Consultancy for Oil & Gas ("The Consultancy") for provision of services in connection with the purchase and operation of this Rig. The Consultancy specializes in the operation and management of drilling rigs and drilling project management. The principal of The Consultancy, Mr. Ron Huddy, has successfully worked in the drilling business in over 40 countries around the world over the past 35 years, including Australia, and is a recognized authority on continuous coring as well as drill string and bit design. The Consultancy team will work closely under Bengal's supervision in the continued preparation for, and the future operation of, the exploratory drilling campaign on ATP 732. As part of the preparatory work, The Consultancy is initiating the procurement, training and certification process for the drilling crews required to carry out the campaign in Queensland.
The Company has recently completed the acquisition, processing and
interpretation of approximately 400 line kilometres of 2D and 50 square
kilometres of 3D seismic data over ATP 732. In conjunction with this seismic data acquisition, the Company has completed an evaluation of aeromagnetic and gravity data on ATP 732, and has integrated such information with its seismic data evaluation.
Six potential drilling locations have been identified covering four key play
types and targeting multiple zones along the established southwest flank of the Cooper Basin. The play types range in depth from 1,000 to 1,800m and include light oil targets in the Jurassic, Cretaceous and fractured basement as well as natural gas in the Permian Toolachee sandstones.
The Company intends to deploy the Rig for its drilling program on ATP 732, with drilling expected to commence on the first of three locations in July 2012. Subject to the results of the first three wells, any additional wells may be drilled immediately thereafter.
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.
SOURCE Bengal Energy Ltd.
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