10-03-09 Calgary-based Bengal Energy has been awarded a 100 % working interest in Exploration Permit AC/P47, a 3,485 sq km (1,345 sq miles) offshore block located in the Timor Sea on the Northwest Shelf of Australia.
Only one well has been drilled on AC/ P47, back in 1973, downdip and off structure of what Bengal believes to be a large area of structural closure encompassing high quality Triassic reservoir rocks. Bengal estimates this structure to be up to 90 sq km (34.7 sq miles) in area and 150 meters (492 feet) thick.

Additional leads and prospects are evident on the permit, including another structural closure of similar size. The Vulcan Graben to the east is an established producing area where the existence of oil-prone hydrocarbon-source beds is believed responsible for the light oil accumulations in this part of the Northwest Shelf.
Based on mapping from a grid of existing seismic data, Bengal believes that there is a reasonable probability of equivalent light oil source strata extending to the flanks of AC/P47.

Located on the Ashmore Platform, most of the permit appears to have water depth of less than 400 meters (1,312 feet), varying between 50 meters and 900 meters (164 feet and 2,952 feet).
Bengal Chairman and CEO Bradley Johnson said, "The award of permit AC/P47 signifies another important milestone in Bengal's growth and demonstrates that the new technical efforts undertaken by the company for the internal generation of leads and prospects are now bearing valuable results."

"Through the middle of last year, we reviewed 17 offshore blocks put on offer by the Australian Government and elected to focus on this block. AC/P47 is located approximately 150 km (93 miles) west of the productive Vulcan Graben where our AC/P24 offshore permit, including the Katandra light oil discovery, is situated."
"We want to emphasize that Bengal has acquired the permit at 100 % working interest to enable the company to carefully manage its technical plans and expenditures at its own discretion, in the interests of shareholders."

The permit will have an initial six year term, divided into two three-year phases. The first year of the program involves reprocessing 985 sq km (380 sq miles) of two-dimensional marine seismic data. In years two and three, Bengal has committed to acquire and process a 750 sq km (289 sq miles) 3D seismic survey. The commitments in this initial three-year phase are estimated to total AU$ 11 mm ($ 7 mm).
After the first three-year phase, Bengal has the option of either relinquishing the permit or committing on a year-by-year basis to the subsequent three-year phase of the work program. This second phase has an estimated cost of A$ 28 mm ($ 18 mm) and involves planning, drilling and evaluating one offshore exploration well with a depth of around 2,600 meters (8,530 feet). In order to manage costs, Bengal will consider bringing in one or more partners as warranted.

The Ashmore Reef National Nature Reserve is around 33 km (20.5 miles) south of AC/P47, leading Bengal to expect a "high level of environmental scrutiny" regarding oil and gas industry activity in the area. The company does not presently anticipate disruptions with regard to its seismic acquisition plans.
In the event of development of an oil discovery, Bengal stated that it would "undertake careful and diligent measures to meet all regulations designed to ensure protection of the environment."