Bengal Energy Ltd. announces the initial production and fracture stimulation results of its 2019 drilling campaign within the Cuisinier Production License 303 on Authority to Prospect 752 Barta Block in the Cooper Basin, Queensland, Australia(Bengal's working interest is 30.357%).

Completion and connection operations of the wells drilled (three wells) and fracture stimulated (two newwells and two existing wells) during the first half of calendar 2019 have nowbeen completed.

Before these newwells were brought into production, total pool production volumes were 820 barrels of oil per day ("bopd"), net 248 bopd (May 2019 average). The newly drilled and fracture stimulated wells were brought into production starting from the first week of June through the second week of July. Production has continued to gradually ramp up as the wells clean up and are optimized. Most recent seven-day total pool production volumes in mid-July averaged 1,374 bopd (net 417 bopd).

Of note is the Cuisinier 29 well, which discovered a newoil pool in the DC-50 sand formation that lies belowthe target DC-70 zone. The DC-50 sand formation has a gross thickness of 12.5 metres and exhibits virgin reservoir pressure. In addition, the well intersected approximately 2.2 metres of gross sand in the target zone DC-70 sand, which also shows virgin reservoir pressure. A development plan for the newDC-50 sand formation will be prepared with further drilling and evaluation expected in Q4 FY 2020.

First oil production from the newly drilled and fracture stimulated wells has commenced through the oil pipeline and production infrastructure linking the Cuisinier pool to the Port Bonython export facilities. Once received at Port Bonython, oil liftings are forecast to realize field net backs of AUS$55 to $65 per barrel.

"This oil production increase,coupled with our robust field netbacks and upcoming water injection pilot project, should support further drilling and development campaigns and sustained recovery from this large ultralight oil field," said Chayan Chakrabarty, Bengal's President and Chief Executive Officer.