Bengal Energy Ltd. and Santos Agree to Farmin Terms and the Drilling of a High Impact Exploration Well in Cooper Eromanga Basin

Source Company Press Release
Company Bengal Energy Ltd., Santos Limited
Tags Corporate: Overview/Strategy, Country: Australia, M&A: Asset Deal, Deals, Upstream: Upstream News
Date July 28, 2020

Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") is pleased to announce it has agreed the terms of a Farmin Agreement with Santos QNT Pty Ltd. ("Santos") covering a portion of Bengal's ATP 934 oil and gas exploration tenement in south western Queensland.

Under the terms of the Farmin Agreement, Santos will pay 100% of the well costs of a one well work program with an estimated cost of AUS$ 2.7 million. Bengal's ATP 934 exploration project and development PLs area covers approximately 1,729 square kilometres (427,000 acres).

Under the Farmin Agreement, Santos has the right to earn a 60% interest in approximately 420 square kilometres in the southern portion of the ATP 934 tenement (the "Farmin Lands"), offsetting recent successful Santos operated exploration wells. The remainder of Bengal's ATP 934 exploration and development portfolio is not subject to, or affected by, this Farmin Agreement. Bengal intends to continue its own exploration campaign on the remaining area having successfully commuted its commitments into the next term of ATP 934 through a special amendment approved by the regulators.

Under the terms of the Farmin Agreement, Santos will be named operator of the Farmin Lands. Drill timing is subject to surface access and rig availability but is expected in calendar Q3/4 2021.

Bengal's CEO, Chayan Chakrabarty said "We are pleased to enter into this Farmin Agreement with Santos on a portion of the 100% Bengal owned ATP 934 tenement. This agreement marks the start of another extremely exciting chapter for Bengal. Ongoing exploration in this region given recent very successful drilling results offsetting ATP 934 to the south has the potential to add value for Bengal shareholders by de-risking our own exploration targets and creating optionality in accessing infrastructure for the PLs to deliver into the attractive eastern Australian natural gas market".

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