Bengal Energy revenue increased 384%
Corporate production in the fourth quarter averaged 325 barrels of oil equivalent per day (boe/d), an increase of 216% over 103 boe/d for the same period in 2012. Average annual production of 170 boe/d in 2013 increased by 26% over the 135 boe/d during fiscal 2012.
Reported revenue for the fourth quarter was $3 million, compared to $0.6 million for the same quarter in 2012. For fiscal year 2013, reported revenue totaled $5.9 million, 37% higher than the $4.3 million reported for the same period the prior year.
During the fourth quarter, Bengal realized operating netbacks of $69.93/boe, an increase of 156% compared to $27.27/boe for the same quarter in 2012. Full year 2013 average realized operating netbacks were $58.61, an increase of 28% relative to $45.72/boe realized in fiscal 2012.
Independent third party year-end reserves evaluation to March 31, 2013 have shown a 167% increase year-over-year in the corporate proved plus probable (2P) reserves, driven by a 260% increase in 2P reserves at Cuisinier.
Based on 2P reserve additions, the Company replaced approximately 18 times its annual 2013 production to March 31, 2013. These reserve additions do not reflect the 5 recently drilled wells at Cuisinier.
A total of 13 wells to date have been drilled and cased as oil producers with 100% success in Cuisinier. Eight of these 13 wells are currently producing. ? New Oil Discovery & Significant Farm-in for Tookoonooka: The Company's first exploration well in the Tookoonooka drilling campaign, Caracal-1, resulted in a new light oil discovery.
Subsequent to year end, Bengal signed a binding letter of intent to form a strategic joint venture in Tookoonooka with Australia-based Beach Energy Ltd., which will see Beach fund the drilling of two wells and the acquisition of an additional 300 km2 of 3D seismic (up to AUD $11.5 million).
With the issuance of $3.5 million in convertible and non-convertible notes in January 2103 (maturing in January 2014), the completion of a $5.7 million equity financing in April 2013, and the recent joint venture in Tookoonooka, the Company is in a strong financial position. ■