Cooper Basin

Key Blocks	Gross Area (acres)	Bengal W.I. % (post farm in)	Bengal Net (acres)
ATP 752P - Barta	360,033	25	90,008
ATP 752P - Wompi	215,723	30	64,717
ATP 934P - Barrolka	361,268	50 (operator)	180,634
ATP 732P - Tookoonooka	654,335	100 (operator)	654,335
PEL 113 - Murteree	13,091	35	4,584
TOTAL	1, 604,456	Average: 62% WI	994,278

 

Cooper Basin Floods

The picture below is a satellite image taken on February 15, 2011

• Green in the desert shows the extent of the Cooper Creek floodwaters
• Interrupted road access is the main restriction to oil production
• 732P (Tookoonooka Block) ‘tablelands’ are relatively dry area
• Cuisinier is comparatively dry area
• Estimated to be 1 in 200-year flood

Cooper Basin Wells

Typical Well Characteristics
	Total vertical depth	Capital requirement	Initial production per well	Estimated ultimate recovery per well
Murta oil	1,600 m	$1.6 MM/well	300-500 boe/d	300-500 Mbbl
Hutton oil	1,800 m	$2 MM/well	800-1,600 boe/d	250-400 Mbbl
Permian gas
Channel facies	3,000 m	$3 MM/well	2-5 MMcf/d	3-8 BCF
Tight gas facies	3,000 m	$3 MM/well	0.5-1.5 MMcf/d	1-3 BCF

 

Cooper Basin - ATP 732P Tookoonooka

• The Queensland government announced final grant of title to ATP 732P exploration permit effective April 1, 2011
• This large block is offset by producing oil and gas fields
• Bengal has defined numerous leads and prospects on the permit
• A seismic program has been designed to enable potential drilling in 2011 and through 2012

The play

• Greater than 1,000 net sections
• Seven different play types:
  • Four conventional light oil
  • Two conventional gas and gas liquid
  • One unconventional gas resource play

The plan

• Commence seismic
• Drill five to eight wells over next 18 months
• Can accelerate further

Offshore Upside - Timor Sea - AC/P 47

• In March 2009, Bengal was awarded a 100% WI in exploration permit AC/P 47, a 3,485 km² offshore block
• Multiple play potential in untested structures formed with thick, high porosity Triassic reservoir sandstones
• Offsets liquid prone source rocks and established oil production in the Vulcan sub-graben
• IndigoPool engaged to facilitate farm-out

AC/P 47 - Prospect Details

• Drill new well in ~300 m water
  • Anticipated TD ~2,300 m
• Up to 150 vertical metres of untested Triassic closure from coarse existing 2D grid
• 41 m mean expected pay (upside 115 m net pay) from 244 m net porous sandstones)
• Updip of hydrocarbon shows (fluorescence) in Hibernia 1
• The N. Hibernia 1 well in 1973 sacrificed structure, targeting a time-high from a shallow water location; successfully drilling an alternative location would prove the Hibernia play on the Ashmore Platform (note 1)

 

Offshore Activity - Timor Sea - AC/P 24

• Bengal has 10% interest (PTTEP operator)
• Offshore Timor Sea:
  • 329 km² (81,300 gross acres)
• Original Katandra discovery well (Dec 2004) proved long distance oil migration from Jabiru and oil-source-kitchen
• Katandra 7-metre column of 48º API oil only marginally commercial without additional offset discovery(s)
• 3D seismic merged PSDM reprocessing of multi-3D data complete
• Block is on trend with Jabiru and Challis oilfields and oil migration pathway
• Current plan: Drill a new exploration well at Kingtree*
  • *Previously referred to as Marshall Withers prospect

Timor Sea - AC/P 24 Kingtree Prospect

• Kingtree Prospect Details
• Target depth 1,650 m
• Water depth 113 m water
• Est. cost (gross) $US22.7 MM
• Bengal net 10% W.I.
• Closure area (up to) 3,930 acres
• Key risk: Oil charge and seal
• Nearby pools: (note 4)
  • Jabiru 112MM bbls
  • Challis 60MM bbls

Independent Resource Assessment

See “ATP 732P Tookoonooka Undiscovered PIIP” and “Notes Regarding Resource Disclosure."

Cooper Basin - Cuisinier Discovery

• ATP 752P, Barta Block
• 25% in 360,570 gross acres
• Discovery well, Cuisinier 1 commenced production May 2010; well rate restricted to ~400 bopd (gross)
• New potential fairway for oil- bearing Cretaceous Murta sandstones; Cuisinier 1 discovery:
  • >13 m pay column
  • 52º API oil
• Three wells awaiting completion and testing March/April 2011
• Cuisinier 3 cased as potential oil well
  

Disclaimers

Note 1 - Prospective Resources are those quantities of petroleum that are estimated, as of Feb 1, 2011, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.
Note 2 - The Undiscovered PIIP includes unrecoverable volumes and is not an estimate of the volume of the substances that will ultimately be recovered. In addition, there is no certainty that any portion of the resources discussed herein will be discovered. If discovered, there is no certainty that it will be commercially viable or technically feasible to produce any portion of such resources.
Note 3- Undiscovered unrecoverable volumes are as follows i) Wyandra sandstones undiscovered unrecoverable oil 47, 87, 146 MMbbls for low, best, high respectively. ii) Toolachee sandstones undiscovered unrecoverable gas 167, 308, 464 BCF, for low, best, high respectively. iii) Toolachee sandstones undiscovered unrecoverable condensate 6, 20, 50 MMbbls, for low, best, high respectively.
Note 4 - There is no certainty that any portion of the resources discussed herein will be recovered. If discovered, there is no certainty that it will be commercially viable or technically feasible to produce any portion of such resources.

ATP 732P Tookoonooka Undiscoverable PIIP
The resource estimates presented in the Report are classified as undiscovered petroleum initially-in-place ("Undiscovered PIIP") and prospective resources. COGEH defines "Undiscovered PIIP" as that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. For greater clarity, the Report subdivides Undiscovered PIIP into undiscovered oil initially-in-place and undiscovered gas initially-in-place. COGEH defines "prospective resources" as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. The Report subdivides prospective resources into prospective oil resources, prospective gas resources and prospective condensate resources. The undiscovered hydrocarbon resource volumes and prospective resource volumes presented in the table below are unrisked. The term "unrisked" means that no geologic risk (chance of discovery) and no commercial risk (chance of development) have been incorporated in the hydrocarbon volume estimates. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. The resource estimates were prepared by Ryder Scott Company-Canada (“Ryder Scott”) in accordance with NI 51-101 and the COGEH. Ryder Scott’s independent resource estimates have an effective date of February 1, 2011. The total Toolachee reservoir low volume estimate is an arithmetic sum of multiple estimates of low volumes and the Toolachee reservoir high volume estimate is an arithmetic sum of multiple estimates of high volumes, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as set forth herein.

Notes Regarding Resource Disclosure:
1. The Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. This term reflects a P90 confidence level where there is a 90% chance that a successful discovery will be more than this resource estimate.
2. The Best (Median) Estimate is considered to be the best estimate of the quantity that will actually be recovered. This term reflects a P50 confidence level where the successful discovery will have a 50% chance of being more than this resource estimate.
3. The High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. This term reflects a P10 confidence level where there is a 10% chance that the successful discovery will be more than this resource estimate.
4. The Mean Estimate is the probability-weighted average, which typically has a probability in the P45 to P15 range, depending on the variance of prospective resources volume or associated value.
5. The Geologic Risk-Adjusted Mean Estimate (“Pg-Adjusted Mean Estimate”) is the probability-weighted average of the hydrocarbon quantities potentially recoverable if a prospect portfolio were drilled, or if a family of similar prospects were drilled. The Pg-Adjusted Mean Estimate is a "blended" quantity. It is a mean estimation of both volumetric uncertainty and geological risk. It considers and quantifies the geological success and geological failure outcomes. Consequently it represents the average or mean "geologic" outcome of a drilling and exploration program. It is calculated as Pg multiplied by the mean estimate.

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