Bengal Energy Signs Production Sharing Contract in India

Calgary-based Bengal Energy Ltd., a junior oil and gas exploration and production company, announced that its wholly-owned subsidiary, Bengal Energy International Inc., has received the official award of India Block CY-OSN-2009/1 from the Government of India (GOI). The production sharing contract sets out the terms and conditions for the exploration and development of the block. It is situated in the Cauvery Basin in Southeast India covering 1,362 sq. km. BEII holds a 100% interest in the block and is the operator. The winning bid requires BEII to acquire 310 km. of 2D seismic data and 81 sq. km. of 3D seismic data during the first four years of the seven-year exploration phase of the block. The committed work program capital expenditure is estimated at US$2 million. Drilling will be required to hold the block after the first four years of exploration is complete. There is a seven-year tax holiday from the start of commercial production.