Canada's Bengal Energy Acquires Queensland Gas Assets
Canada-listed Bengal Energy has signed a sales and purchase agreement to acquire 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, it said September 12.
The company said that these non-productive PLs are ‘highly compatible’ with and close to its 100% owned and operated natural gas prospective ATP 934 located in Queensland's Cooper Basin gas fairway. The new PLs comprise a total of 267 km2 for a total acreage position in the area of 1,729 km2.
Once all the required regulatory approvals are in place, which is expected to by end-2019, Bengal said it plans to integrate subsurface data from the PLs to enhance the understanding of ATP 934 and to finalise the selection of exploration and appraisal drilling locations.
Included in this program is an oil zone completion on a cased well which recovered 588 barrels/day of 37 degree API oil, based on a 105-minute test period when it was drilled in 2007, Bengal said. Upon completion of a successful test, the company plans to immediately equip the well for production. The oil will be sold into the regional market, it said. Bengal plans on funding this activity through a combination of cash flow and potential industry participation through farmin.
"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," said Bengal CEO Chayan Chakrabarty.
Chakrabarty said the 100% ownership of these assets presents a lower-risk appraisal opportunity that will be operated by the company. “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," he said. ATP 934 covers an area of 1,462 km2 and is immediately surrounded by the newly acquired PLs.