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Bengal Energy Announces Positive Results from Sustainability Screening Study for Cooper Basin Operated Projects in Queensland

Mar 15, 2022

Bengal Energy Ltd. is pleased to announce that the German-Australian Chamber of Commerce (AHK Australien) has produced positive results from a screening study to evaluate tailor-made and novel technologies targeted specifically at Bengal’s upcoming Cooper Basin operated activities with the objective of lowering Bengal’s carbon footprint and operating costs.

Renewable electrification and carbon capture projects are among several innovative technologies identified by the study which may lower operating costs and provide incremental revenue opportunities while reducing the Company’s operational carbon footprint.

The Company believes that the electrification of well sites using renewable energy has the potential to both improve operating economics and reduce carbon emissions through early integration into production design. The pursuit of carbon capture projects in collaboration with Bengal’s landholders may have the potential to yield long-term revenue streams, reduce rehabilitation liability while providing commercial development opportunities for various Bengal stakeholders. The Company has initiated several follow-on projects to further substantiate these benefits and operationalize these recommendations as part of its 2022 development program.

Bengal’s mission is to develop and employ sustainability strategies that are practical and immediately applicable to support all its stakeholders while generating attractive economics that add to shareholder value. The screening study was completed by the AHK Australien’s Energy Cluster, which has partnered with various Australian counterparties to develop and implement innovative technologies within Australia’s energy sector. The purpose of the study is to develop strategies aligned with the Company’s sustainability mission.

AHK Australien connects German technology providers with Australian clients and promotes trade relationships that can benefit its members and the Company in the application of leading technology to its early operations.

Beyond sustainability measures and immediate economic advantages, these projects may have the potential to generate carbon credits (Australian Carbon Credit Units, or “ACCUs”) which Bengal anticipates will be able to be used as an offset or traded along with potential research and development credits that may be assessable due to the innovative nature of these projects. For reference, the price for ACCUs on the spot market has risen from around AUD 37 / tonnes of carbon dioxide equivalent (“tCO2e“) in November 2021 to AUD 54 / tCO2e[1].

“As a nimble junior operator with a focus on responsible resource development, Bengal believes it will be able to assess and deploy novel technologies early in the lifecycle of our upstream oil and gas assets allowing the Company to generate additional value for shareholders and utilize simultaneous sustainable sources of energy to gain a competitive advantage, especially in light of the Company’s ambition to get listed on the Australian Stock Exchange in the near future,” said Chayan Chakrabarty, Bengal’s President and Chief Executive Officer.

In its press release dated March 9, 2022, Bengal provided details of its upcoming activity plans for two of its 100% owned and operated permits in the Cooper Basin. The Company will release updates and results of its operations, and targeted sustainability projects specific to its operated activities, in subsequent disclosures.