Wednesday, May 21st, 2014

Before Tax Proved plus Probable Reserves Value Equates to More Than Double the Company's Current Enterprise Value

CALGARY, ALBERTA -- (Marketwired) -- Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce significant increases in the net present value and volume of its reserves following the completion of its fiscal 2014 year-end independent reserves report (the "Report"). The Report is the result of an independent evaluation of the Company's producing oil and gas properties by GLJ Petroleum Consultants Ltd. ("GLJ") of Calgary, Alberta effective March 31, 2014. The Company's reserves were evaluated by GLJ in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and in accordance with the Canadian Oil and Gas Evaluation ("COGE") Handbook.

Reserves Highlights Include:

--  A 149% increase in the value(1) of Bengal's working interest ("WI")
    proved plus probable ("2P") reserves at fiscal year-end 2014 to
    approximately $101 million, compared to $41 million at year end 2013.
    This 2014 2P value compares to the Company's enterprise value of $39.3
    million(2) as at May 15, 2014; 

--  Total proved ("1P") WI reserves of 1.7 MMBOE at March 31, 2014 has
    increased by 122% and is equivalent to the prior years' total 2P

--  2P WI reserves of 3.8 MMBOE at March 31, 2014 is a 122% increase over
    the prior year's 2P reserves of 1.7 MMBOE; and 

--  Based on 1P and 2P reserve additions, respectively, the Company replaced
    approximately 6.4 times and 13.2 times its annual production for the
    year ended March 31, 2014. 

(1) The Company Interest reserve values are based on pre-tax net present    
    value using GLJ's April 1, 2014 forecast pricing, discounted at 10%.    

(2) Enterprise value is calculated as market cap plus total debt less cash, 
    and is based on a closing price of $0.55 per share on May 16, 2014, and 
    $8.75 million in total debt outstanding.                                

The significant and continuing growth in Bengal's reserve base is a direct result of the drilling and development activities undertaken in the Company's Cuisinier Field, and demonstrates the inherent value of this large, ultralight oil weighted asset base. In addition, due to the report date of March 31, 2014, the reserves attributed to the Company do not include the results from the four successful wells drilled to date in the 2014 Phase One Cuisinier drilling program, any production and reserves impact of which will be realized later in calendar 2014 and be reflected in a subsequent reserves report.

"In light of the tremendous growth and value increase that we have announced today, Bengal is very well positioned to continue growing our production, cash flow and reserves for the benefit of our shareholders," said Chayan Chakrabarty, Bengal's President and CEO. "Having much higher reserve volumes and values also affords us greater flexibility to responsibly expand our borrowing base, and underpin the continued development of these unique, world-class assets. We look forward to keeping shareholders updated on our continuing progress and success, and thank them for their ongoing support."

Reserves Summary:

The following tables provide a summary of Bengal's petroleum and natural gas reserves as evaluated by GLJ effective March 31, 2014 in the Report using GLJ's forecast prices, costs and foreign exchange rates as at March 31, 2014. It is important to note that the recovery and reserves estimates provided herein are estimates only. Actual reserves may be greater or less than the estimates provided herein.

Total Corporate Reserves Summary (Australia + Canada):

                              LIGHT AND MEDIUM OIL               NATURAL GAS
Reserves Category        Gross (Mbbl)   Net (Mbbl) Gross (MMcf)   Net (MMcf)
Proved Developed                                                            
  Producing                       444          411          336          271
  Non-Producing                    14           13            -            -
Proved Undeveloped              1,158        1,068            -            -
Total Proved                    1,616        1,492          336          271
Probable                        2,007        1,852          530          419
Total Proved Plus                                                           
 Probable                       3,624        3,344          867          690

                               NATURAL GAS LIQUIDS                     TOTAL
Reserves Category        Gross (Mbbl)   Net (Mbbl) Gross (MBOE)   Net (MBOE)
Proved Developed                                                            
  Producing                         4            2          504          458
  Non-Producing                     -            -           14           13
Proved Undeveloped                  -            -        1,158        1,068
Total Proved                        4            2        1,676        1,539
Probable                            6            4        2,102        1,926
Total Proved Plus                                                           
 Probable                          10            6        3,778        3,465
(1) Estimates of reserves of natural gas include associated and non-        
    associated gas.                                                         
(2) "Gross Reserves" are Company's working interest reserves (operating and 
    non-operating) before the deduction of royalties and without including  
    any royalty interest of the Company.                                    
(3) "Net Reserves" are Company's working interest reserves (operating and   
    non-operating) after deductions of royalty obligations plus the         
    Company's royalty interests.                                            
(4) The numbers in this table may not add exactly due to rounding.          

Total Corporate Net Present Value of Future Net Revenue:

                                                      After Tax Net Present 
               Before Tax Net Present Value Discounted  Value Discounted at 
                                                at 10%                  10% 
figures in M$      March     March       %   March 31,   March 31,       %  
 except %       31, 2014  31, 2013   Change       2014        2013   Change 
 Producing        24,067     8,268      191     23,781       8,268      188 
Non-Producing        678     2,822      (76)       576       2,822      (80)
 Undeveloped      20,784     6,947      199     14,530       6,947      109 
Total Proved      45,529    18,036      152     38,887      18,036      116 
Probable          55,586    22,589      146     39,443      17,211      129 
Total Proved                                                                
 Plus Probable   101,115    40,625      149     78,330      35,247      122 

Pricing Assumptions - Forecast Prices and Costs:

The following are select crude oil pricing, exchange rate and inflation rate assumptions used by GLJ as of March 31, 2014 in estimating the reserves data in the Report using forecast prices and costs. For the year-ended March 31, 2014, Bengal's average realized sales prices for crude oil was US$ 113.71/bbl (CAD $125.30/bbl).

            ICE Brent Near Month                                            
          Futures Contract Crude                                            
           Oil North Sea Current NYMEX WTI Near Month Futures Contract Crude
Year                     USD/bbl                     Oil at Cushing Oklahoma

                                         2014 $USD/bbl       Current USD/bbl
2014 FY                   107.54                 97.79                 97.79
2014 2H                   107.50                 97.50                 97.50
2015                      107.50                 95.59                 97.50
2016                      105.00                 93.71                 97.50
2017                      102.50                 91.88                 97.50
2018                      102.50                 90.07                 97.50
2019                      102.50                 88.31                 97.50
2020                      102.50                 87.50                 98.54
2021                      103.38                 87.50                100.51
2022                      105.45                 87.50                102.52
2023                      107.56                 87.50                104.57
2024+                   +2.0%/yr                 87.50              +2.0%/yr

           Light Sweet Crude Oil                                            
                 (40 API, 0.3%S)                                            
                Edmonton Current                                            
Year                     CAD/bbl           Inflation % Exchange Rate USD/CAD

2014 FY                   102.04                   1.8                0.9016
2014 2H                   102.78                   2.0                0.9000
2015                      102.78                   2.0                0.9000
2016                      105.56                   2.0                0.9000
2017                      105.56                   2.0                0.9000
2018                      105.56                   2.0                0.9000
2019                      105.56                   2.0                0.9000
2020                      106.37                   2.0                0.9000
2021                      108.49                   2.0                0.9000
2022                      110.66                   2.0                0.9000
2023                      112.87                   2.0                0.9000
2024+                   +2.0%/yr                   2.0                0.9000

Reserves Committee:

The Company's Board of Directors has a Reserves Committee, comprising entirely of independent board members, which reviews the qualifications and appointment of the independent reserve evaluators and the procedures for providing information to the evaluators. All booked reserves are based upon annual evaluations by the independent qualified reserve evaluators in accordance with the COGE Handbook. The evaluations are conducted from the fundamental geological and engineering data. Both the Reserves Committee, chaired by Mr. Peter Gaffney, as well as the full Board of Directors have reviewed the reserves information and approved the reserves report.

About Bengal:

Bengal Energy Ltd. (TSX: BNG) is an international oil and gas exploration and production company with producing and prospective light oil-weighted assets in Australia and India. Bengal offers exposure to lower risk, current production and cash flow, combined with longer-term high, potential impact exploration projects. The Company's strategy is to achieve per share growth in cash flow, production and reserves while establishing an attractive portfolio of future drilling and exploration opportunities. Additional information is available on our website at

Forward-Looking Statements

This news release contains certain forward-looking statements or information ("forward-looking statements") as defined by applicable securities laws that involve substantial known and unknown risks and uncertainties, many of which are beyond Bengal's control. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward looking statements. The use of any of the words "plan", "expect", "prospective", "project", "intend", "believe", "should", "anticipate", "estimate", or other similar words or statements that certain events "may" or "will" occur are intended to identify forward-looking statements. The projections, estimates and beliefs contained in such forward looking statements are based on management's estimates, opinions, and assumptions at the time the statements were made, including assumptions relating to: the size and volumes of the Company's reserves; the impact of economic conditions in North America, Australia, India and globally; industry conditions; changes in laws and regulations including, without limitation, the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the availability of qualified operating or management personnel; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility and fluctuations in market valuations of companies with respect to announced transactions and the final valuations thereof; results of exploration and testing activities; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisitions, development or exploration; and the ability to obtain required approvals and extensions from regulatory authorities. We believe the expectations reflected in those forward-looking statements are reasonable but, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Bengal will derive from them. As such, undue reliance should not be placed on forward-looking statements. The recovery and reserve estimates of Bengal's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.

The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Bengal's actual financial results, performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to, risks associated with: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; capital expenditure costs; the failure to obtain required regulatory approvals or extensions; failure to satisfy the conditions under farm-in and joint venture agreements; failure to secure required equipment and personnel; changes in general global economic conditions including, without limitations, the economic conditions in North America, Australia, India; increased competition; the availability of qualified operating or management personnel; fluctuations in commodity prices, foreign exchange or interest rates; changes in laws and regulations including, without limitation, the adoption of new environmental and tax laws and regulations and changes in how they are interpreted and enforced; the results of exploration and development drilling and related activities; the ability to access sufficient capital from internal and external sources; and stock market volatility. Readers are encouraged to review the material risks discussed in Bengal's Annual Information Form under the heading "Risk Factors" and in Bengal's annual MD&A under the heading "Risk Factors". The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking statements contained in this news release speak only as of the date hereof and Bengal does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be require pursuant to applicable securities laws.

Barrels of Oil Equivalent

When converting natural gas to equivalent barrels of oil, Bengal uses the widely recognized standard of 6 thousand cubic feet (mcf) to one barrel of oil (boe). However, a boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Internal estimates

Certain information contained herein are based on estimated values the Company believes to be reasonable and are subject to the same limitations as discussed under "Forward-looking Statements" above.

Oil and Gas Advisory

The reserves information contained in this press release has been prepared in accordance with NI 51-101. Complete NI 51- 101 reserves disclosure will be included in our Annual Information Form for the year ended March 31, 2014 which is expected to be filed in late June 2014. Listed below are cautionary statements applicable to our reserves information that are specifically required by NI 51-101:

a.  Individual properties may not reflect the same confidence level as
    estimates of reserves for all properties due to the effects of
b.  This news release contains estimates of the net present value of our
    future net revenue from our reserves. Such amounts do not represent the
    fair market value of our reserves. 
c.  Reserves included herein are stated on a Company Interest basis (before
    royalty burdens and including royalty interests) unless noted otherwise
    as well as on a gross and net basis as defined in NI 51-101. "Company
    Interest" is not a term defined by NI 51-101 and as such the estimates
    of Company Interest reserves herein may not be comparable to estimates
    of "gross" reserves prepared in accordance with NI 51-101 or to other
    issuers' estimates of Company Interest reserves. 

Certain Defined Terms

Bbl - barrel                          Mcf - thousand cubic feet             
Bbl/d - barrels per day               Mcf/d - thousand cubic feet per day   
Boe - barrels of oil equivalent       MMbbl - million barrels               
Boe/d - barrels of oil equivalent per MMBOE - 1 million barrels of oil      
day                                   equivalent                            
Mbbl - million barrels                MMcf - million cubic feet             
MBOE - million barrels of oil                                               


Bengal Energy Ltd.
Chayan Chakrabarty
President & Chief Executive Officer
(403) 205-2526

Bengal Energy Ltd.
Jerrad Blanchard
Chief Financial Officer
(403) 205-2526
[email protected]


Bengal Energy, BNG, increases, net present value, reserves, year-end independent reserves report


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