Bengal Energy to acquire stake in petroleum leases and gas pipeline

Bengal Energy has signed an agreement to purchase a 100% working interest in four petroleum leases (PLs) and a natural gas pipeline indirectly connected to transportation infrastructure into the Eastern Australia Gas Market.

These non-productive PLs are located close to the company’s fully owned and operated natural gas prospective permit Authority to Prospect 934 (ATP 934), which is located in the Cooper Basin natural gas fairway in Australia.

The binding sales and purchase agreement (SPA) supports Bengal Energy’s strategy to increase its ownership and operatorship of its permits in Australia’s Cooper Basin.

Bengal Energy is currently in the process of funding alternatives to analyse the new PLs by the end of this financial year. It also plans to drill up to three wells by next year so as to determine the resource potential of ATP 934.

ATP 934 covers an area of 1,462km², which is equivalent to 360,000 acres. The new PLs comprise 267km² for a total acreage position in the 1,729km² area.

Bengal Energy president and CEO Chayan Chakrabarty said: “These assets include previously producing natural gas wells that are currently shut-in and a productive oil discovery which we believe to be commercial.

“The PLs are surrounded by producing gas fields, active gas appraisal and development drilling campaigns, and readily accessible gas infrastructure.

“We see this opportunity to be not only complementary to our proven producing, non-operated Cuisinier asset, but also as a key stepping stone for Bengal’s natural gas platform upon which future exploration growth through ATP 934 can be undertaken.”

Last January, Bengal Energy increased its ownership in its operated natural gas prospective permit ATP 934 to 100%.