AUSTRALIAN FOCUSED EXPLORATION & PRODUCTION COMPANY May 2020 - PowerPoint PPT Presentation

AUSTRALIAN FOCUSED EXPLORATION & PRODUCTION COMPANY May 2020 TSX: BNG 1

BENGAL ENERGY EXPERIENCE IN AUSTRALIA Canadian listed TSX company [BNG] formerly Avery Resources Inc. 2019 2009 2004 2006 2007 2008 2011 2017 Enter Australia Timor Sea Consolidation of ownership to and Cooper Basin farm ins 100% in ATP 934 and continued Gazettal acquisition of Acquisition of 100% ATP 732 and established significant development drilling at Cuisinier ATP 934 for natural gas acreage position exposure Continual development • Acquisition of 4 PLs of Cuisinier Murta – to offsetting ATP 934 (with date with pool size now First success – Hutton ~ 100 MMbbls OOIP found gas & oil) and gas oil discovery at Toparoa, JV with Santos leading to pipeline connected to with Stuart Energy – Cuisinier Murta oil discovery DST 1,814 BOPD Hutton market • 100% Operated WI 2

BENGAL ENERGY CORPORATE PROFILE Values at Q3 Fiscal Year 2020 ended December 31, 2019 Capitalization and Financials - CAD$ unless otherwise stated Shares Outstanding (MM) 102.30 Current Share Price - May 14-20 $ 0.045 Market Cap $4.6 MM Net Debt (MM) $ 15.4 Corporate Reserves Value Btax PV 10 (Mar. 31/19)* (1) Proved + Probable ($MM) $ 146.16 Equivalent Value per Basic Share $ 1.43 Operational Results Average daily production (BOPD) (Q3 FY 2020) 280 36% Operating Netback including Hedges (Q3 FY 2020) $ 59.68 Insider holdings Operating Netback including Hedges (9 mos. ended Q3 FY 2020) $ 54.32 * Independent third party reserves evaluation (1) See “Forward-Looking Statements, Cautionary Statements“ and “Oil and Gas Advisories” at the end of this presentation. 3

CORPORATE STRATEGY  Develop the newly acquired found gas and oil petroleum leases offsetting ATP 934 – build cash flow, book reserves/resources, de-risk bigger prospects  Accelerate ongoing development of our Cuisinier light oil asset  Materially grow our asset base in the region through new accretive acquisitions  Establish JV relationships to advance the commercialization of ATP 934 (natural gas asset), and ATP 732 (oil prospect)  Enhance Australian presence by establishing an office in Australia  Access Australian public equity markets  Expand our relationships with established E&P companies in the region 4

COOPER BASIN  Fiscal stability, low government royalties and strong commodity pricing  Production and development of ultralight oil in Cuisinier with 2P OOIP up to 95 million barrels  Cuisinier waterflood commencing mid 2020 AREA OF ACQUIRED PLs  Significant development & appraisal opportunities in CUISINIER PLs 303 & 1028 PCAs 206 & 207 newly acquired PLs  High impact exploration - Gas (ATP 934) & Oil (ATP 732) ATP 934 ATP 732 BARROLKA TOOKOONOOKA HIGHLY PROSPECTIVE ∼ 810,000 GROSS ACRES (78% operated) PCA 155 Operated BNG 100% Non-operated – JV with Santos SA QLD Existing pipelines A STRONG PLATFORM FOR FUTURE GROWTH 5

BENGAL ASSET HIGHLIGHTS OIL - Stable ‘ultralight’ oil production base  Forecast field netback of AUS$ 32+/Bbl at US$ 45 Brent pricing  Large oil in place ~ 95 Million Barrels (GLJ 2P) - Recovery factor to date: ~ 3%  Waterflood expected to commence mid 2020 – with potential recovery of up to 25-30%  Ongoing pool development GAS - Significant natural gas position in highly prospective gas jurisdiction  Recently acquired Petroleum Leases (PLs) with found gas and oil – ready for restart of production – complementary to ATP 934  In house “proprietary seismic processing technology” to de-risk exploration drilling and establish large gas resource  Established infrastructure and market access  Burgeoning East Coast gas market with robust price outlook 6

CUISINIER PL 303 7

BARTA/CUISINIER 2019 RESULTS  2019 Drilling Program included 5 wells: C-26, C-27, C-28, C-29 and C-30 (red stars on map)  C-29 was an oil discovery in a lower sand, Murta DC50  2019 Stimulation Program included 2 wells: C-15 and C-21 (black stars on map)  These activities resulted in a field production increase from June of 2019 of 803 bopd ( 244 bopd net) to a July 2019 average of 1,187 bopd ( 360 bopd net)  Ongoing planning for 2021 Development Drilling Campaign (up to 4 wells)  A scalable waterflood pilot is scheduled to commence in mid 2020 HISTORY OF DRILLING SUCCESS AND POOL SIZE EXPANSION 8

ATP 934 BARROLKA 9

ATP 934 & ACQUIRED PL DEAL (BNG 100 % AND OPERATOR) PERMIT NEIGHBOURING PRODUCING GAS FIELDS & GAS PIPELINES FEEDING EASTERN AUSTRALIA Whanto: Bengal Prospects 2.7 BCF (1)  Large, undrilled 1,462 km 2 permit in gas jurisdiction. Bengal has Gas Field Karnak mapped 4 prospects on ATP 934 New PLs  Bengal has acquired 4 PLs with found gas (see map) that are complementary to our existing permit Toby: 6.7 BCF (1) Barrolka: Ramses 22.5 BCF (1) • All PLs have existing wells indicating log pay, DSTs and/or gas Wareena production from the Permian, in the case of the Wareena PL • Bengal has identified 4 wells to be tested and re-completed for Wareena: 7.7 BCF (1) production in our first phase of development (Q2 through Q4, Coolah: 1.8 BCF (1) 2021) • With success, numerous opportunities available to expand and Ghina develop these existing gas pools Durham Downs & Durham Tartulla:  Actively pursuing a farm-out on ATP 934, to attract funding and Downs North: 14.3 BCF (1) 53.1 BCF (1) materially de-risk the project in 2020 Cumulative Permian Production to June 2018 (1) (1) Production volumes cited are cum. to June 2018. Source: State of Queensland Department of Employment, Economic Development and Innovation (DEEDI). SURROUNDED BY GAS POOLS; CUMULATIVE REC. TO DATE 4 BCF/WELL 10

NEW PLs SURROUNDING ATP 934 100% owned and operated  PL 114 – Wareena  PL 157 – Ghina  PL 188 – Ramses  PL 411 – Karnak PPL 138  PPL 138 – Wareena to Coonaberry pipeline  Total area acquired 267 km 2 (65,977 acres) of land and a 24.5 km pipeline from Wareena field to a metering facility in Coonaberry field. 11

GHINA WELL: SUCCESSFUL EPT With a successful extended production test on the Ghina 1 well, Bengal will confirm the following:  Presence of reservoir quality sand in the Toolachee (Permian horizon)  Presence of flowable gas to surface (also allows for test for gas composition)  Presence of a working petroleum system: source, timing and migration pathways to this reservoir  Presence of a structure and reservoir sand that can be mapped with 2D seismic  Presence of adequate seal(s) to trap gas in these structures What is the upside upon success?  Additional drilling opportunities in the Ghina field from seismic mapping  Provides strong evidence that reduces the risk associated with drilling of the identified prospects on Bengal’s ATP 934 as Ghina 1 is on trend with these prospects 12

ATP 934 SUMMARY  We have assembled a portfolio of gas assets contiguous to ATP 934 with the potential for immediate production, followed by low risk appraisal and near field exploration growth  State of the art seismic processing combined with basic engineering production optimization underpins risk-management  ATP 934 combined with the Santos ‘Found Gas’ PLs represents a compelling portfolio of gas resources  The permit is crossed by pipelines representing three different access to market scenarios  Cased and tested wells should allow for immediate reserves booking (oil and gas)  The Santos PLs are synergistic with and complementary to Bengal’s ATP 934 permit and represent the first of future such opportunities from Santos, especially within the Cooper Basin 13

PCA 155 14

PCA 155 UPDATE: NUBBA WELL Stranded C&S well that was  Nubba 1 Well drilled by JV in 2014 Well has 2.7m of gas pay in  Toolachee Santos proposes to perf and flow  the Toolachee sands to confirm deliverability and volume estimates for an expected cost of 150K in 2021 Operator needs a minimum  volume of 0.5 BCF to justify tie-in to nearest connection of 3.5 to 4.9 km (Goora well) Nubba Well 15

ATP 732 TOOKOONOOKA 16

ATP 732 TOOKOONOOKA  Bengal has identified 2 oil prospects in the Hutton Zone Cougar (Lynx and Puma) and 1 gas prospect in the Toolachee Zone Lynx (Cougar) on ATP 732  The oil prospects represent a short timeline to commerciality with the option of trucking crude to either the Eromanga refinery or to the Jackson terminal via paved road  Shallow target depths of 1000-1500m MD  Looking for a farm-in partner to reduce capital exposure Puma 0 3,000 6,000 9,000 METERS 17

AC/RL 10 KATANDRA 18

AC/RL 10 UPDATE Full Waveform Inversion Processing Sapura farmed in Sep 2018 as 70% operator to Finder’s Murphy farmout of AC/P61, well due in 2022 AC/P58 unsuccessful: Block dropped mid  PSTM 2019 Murphy Completed May 2020 AC/P58 Finder AC/P61  PSDM Orchid-1 Jan 2019 Completed May 2020 Abandoned, produced 112 MMbbls Abandoned, ENI produced AC/P21 59 MMbbls ENI have commitment well for 2019 in AC/P21 but likely to request suspension/extension for 2020 drilling 19