Canada’s Bengal Energy has signed an approximately A$7.6m ($7m) agreement to buy an additional 5.357% interest in the Cuisinier Oil Field and the Authority to Prospect (ATP) 752P, located in the Cooper-Eromanga Basin in Queensland, Australia.
The additional stake will increase the company’s stake in the oil field to 30.357%.
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Bengal Energy has drilled 13 light oil wells to date in the Cuisinier Oil Field, which currently produces around 375 barrels of oil per day (b/d).
The acquisition of the additional stake is expected to increase production by around 20%, to 455 b/d.
The Cuisinier Oil Field is connected by pipeline to the Cook Processing Facility, which is located on the Barta sub-block of ATP 752P.
The company plans to buy a further 15% interest in ATP 752P for approximately $20m from one of its joint venture partners in July.
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By GlobalDataBengal Energy CEO Chayan Chakrabarty said: "As a result of this acquisition, net production to Bengal will increase by more than 20% and coupled with the area’s attractive netbacks, enables us to generate higher incremental cash flows.
"Further, the company will be positioned to realize a greater proportion of future booked reserves, which is expected to enhance the company’s growth and underlying value."
Image: Bengal Energy has drilled 13 light oil wells in the Cuisinier Oil Field. Photo: courtesy of Alan Murray-Rust.
