Fiscal Year End 2 Unbelievable Facts About Fiscal Year End
Calgary, Alberta–(Newsfile Corp. – June 25, 2020) – Bengal Energy Ltd. (TSX: BNG) (“Bengal” or the “Company”) today announces its banking and operating after-effects for the fourth division and the budgetary year concluded March 31, 2020.
The afterward is an overview of the banking and operational after-effects during the three and twelve ages periods concluded March 31, 2020:
On May 29, 2019, the Aggregation and Westpac entered into an alteration to its aloof based revolving acclaim adeptness (the “Credit Facility”) that had arch payments deferred from February 15, 2020 to April 1, 2020. All antecedent acceding beneath the November 19, 2018 alteration accept transferred anon to the May 29, 2019 amendment. The Acclaim Adeptness requires the Aggregation to accomplish a distinct acquittal of the outstanding bulk attributable on the Acclaim Facility. The absorption bulk beneath the Acclaim Adeptness remained banausic at US LIBOR added 3.75%.
On November 5, 2019, the Aggregation and Westpac agreed to added adjournment the adeptness date of the Acclaim Adeptness to October 31, 2020. All antecedent acceding and altitude abide the aforementioned except for the absorption bulk which confused from 3.75% to 3.95%.
Management continues to altercate with the lender the befalling to amplify the appellation of the accepted adeptness decidedly in ablaze of the contempo accretion which has the abeyant to both admission affluence and beforehand banknote flow. There would be an adverse appulse on the Company’s clamminess and its adeptness to abide as a action affair should it be bootless in negotiating an alteration and cessation of arch payments to the Acclaim Facility.
The Acclaim Facility’s reserve-based covenants accommodate a debt account advantage arrangement (cash accessible for debt payments disconnected by binding debt repayments) as able-bodied as a accommodation action advantage arrangement (net present amount of approaching banknote accessible for debt account disconnected by the accessible facility). These covenants appulse the Company’s accessible adeptness limit, and accordingly the adeptness to defended its debt as a allotment of assets forecasts and are evaluated at anniversary abacus date. These covenants are affected appliance inputs as assigned by Westpac, and a absence accident triggered by a aperture of covenants may aftereffect in a abounding accretion of all outstanding borrowings beneath the acceding of the Acclaim Facility. The Aggregation was not in acquiescence with its debt account advantage arrangement acceding at March 31, 2020. Subsequent to March 31, 2020, the Aggregation accustomed a abandonment from its lender in account of the March 31, 2020 acceding breach.
(1) Operating netback is a non-IFRS admeasurement and includes accomplished accretion (loss) on banking instruments. Operating netback per bbl is affected by abacus acquirement (including accomplished accretion (loss) on banking instruments) beneath royalties and operating costs by the absolute assembly of the Aggregation abstinent in bbls. A adaptation of the measures can be begin on folio 8 of the Company’s management’s altercation and assay for the Q4 and budgetary year concluded March 31, 2020.
(2) Funds from (used in) operations is a non-IFRS admeasurement which is affected by abacus aback all non-cash amount deductions to the net accident for the division and year. Funds from (used in) operations per allotment is a non-IFRS admeasurement affected as affected by abacus funds from (used in) operations by abounding boilerplate basal and adulterated shares outstanding for the periods disclosed. A adaptation of the measures can be begin in the table on folio 21 of the Company’s management’s altercation and assay for the Q4 and budgetary year concluded March 31, 2020.
(3) Adapted net assets (loss) and adapted net assets (loss) per allotment are non-IFRS measures. The commensurable IFRS admeasurement is net assets (loss). A adaptation of the two measures can be begin in the table on folio 21 of the Company’s management’s altercation and assay for the Q4 and budgetary year concluded March 31, 2020.
(4) The aloft non-IFRS measures do not accept any affiliated acceptation beneath GAAP (as that appellation is authentic in National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards) and accordingly may not be commensurable to agnate measures presented by added issuers.
Bengal has filed its circumscribed banking statements and management’s altercation and assay for the fourth budgetary division of 2020 and year concluded March 31, 2020 with the Canadian balance regulators. The abstracts are accessible on SEDAR at www.sedar.com or by visiting Bengal’s website at www.bengalenergy.ca.
AUSTRALIA – Cooper Basin, Queensland
Significant Bread-and-butter Developments
In March 2020, the World Health Organization declared a all-around communicable accompanying to COVID-19. In addition, all-around article prices accept beneath decidedly due to disputes amid above oil bearing countries accumulated with the abrogating appulse to oil appeal from the COVID-19 pandemic. Governments worldwide, including those in Canada and Australia, accept allowable emergency measures to action the beforehand of the virus. These measures, which accommodate the accomplishing of biking bans, self-imposed apprehension periods and amusing distancing, accept acquired absolute disruption to businesses globally constant in an bread-and-butter slowdown. Governments and axial banks accept reacted with cogent budgetary and budgetary interventions advised to balance bread-and-butter conditions; however, the success of these interventions is not currently determinable.
The accepted arduous bread-and-butter altitude may accept cogent adverse impacts on the Company, including absolute declines in acquirement and banknote flows, and accompanying impacts to alive basic levels and/or debt balances, which may additionally accept a absolute appulse on the Company’s operating after-effects and banking position. These and added factors may abnormally affect the Company’s clamminess and the Company’s adeptness to accomplish assets and banknote flows to accommodated the Company’s accepted and approaching obligations. The bearings is activating and the ultimate continuance and consequence of the appulse on the abridgement and the banking aftereffect on the Aggregation is not accepted at this time. Estimates and judgements fabricated by administration in the alertness of the banking statements are more difficult and accountable to a college amount of altitude ambiguity during this airy period.
Bengal’s bearing and non-producing assets are anchored in Australia’s Cooper Basin, a arena featuring ample accumulations of absolute ablaze and aerial affection awkward oil and accustomed gas. The Company’s amount Australian assets, Petroleum Charter (“PL”) 303 Cuisinier, ATP 934 Barrolka, ATP 732 Tookoonooka, and four afresh acquired petroleum licenses are anchored aural an breadth of the Cooper Basin that is able-bodied served with assembly basement and take-away accommodation for produced awkward oil and accustomed gas. Still in aboriginal stages in acceding of appraisement and development, Bengal believes these assets action adorable upside abeyant for both oil and gas. Australia presents a abiding political, budgetary and bread-and-butter ambiance in which to operate, and a favourable adeptness administration for oil and gas production.
Under the State of Queensland Authoritative process, ATPs are accepted by the State about for a aeon of twelve years with one third of the aboriginal admission breadth expiring every four years. At the end of the final appellation of the ATP, an appliance can be fabricated to abide a allocation of the admittance in the anatomy of a PCA (Potential Bartering Area). PCAs accept a action amount of bristles to fifteen years. In the case of ATP 752, with the bearing Cuisinier Oil Field offsetting and oil shows in the Murta breadth as able-bodied as the added Jurassic Birkhead breadth in the Hudson 1, Koki 1 and Barta 1 wells ahead accomplished and alone and the affirmation of structural chain from the 3 D seismic ascendancy acquired over the aftermost few years applications for PCA’s 205 and 206 were fabricated on the Barta block and accustomed by the Queensland authoritative authority. These applications accommodate a bartering action address that indicates the breadth is acceptable to be commercially applicative aural the activated term. This allows for added time to commercialize the resource. Similarly appliance was fabricated and accustomed for PCA 155 on the Wompi block and approved. These PCA’s abide a allotment of the ATP until expiry. If a assay of oil or gas is made, an appliance for a petroleum lease) is fabricated to acquiesce for production. PLs are accepted for up to a thirty-year term. Bengal has two PLs on the above ATP 752 Barta block, PL 303 and PL 1028, in accession to three PCAs, PCA 206, 207 Barta West and PCA 155 Wompi block-Nubba/Yilgarn. Bengal additionally acquired four PLs adjoining to ATP 934 in Q2 FY 2020.
AUSTRALIA – Cooper Basin, Queensland
PL303 and PL 1028 Cuisinier (controlling admittance ATP 752) (30.357% WI)
The Cuisinier 29 able-bodied is on assembly from the anew apparent DC-50 zone. After antecedent abatement the able-bodied has counterbalanced at about 100 bbls/d of ablaze awkward (30 bbls/d net).
Planning and conduct area another for the 2020 multi-well development and appraisement conduct attack has been deferred due to the COVID 19 communicable and affronted by accepted low oil prices. Timing of restarting the attack will be re-assessed in approaching periods based on appraisement and banking altitude at that time.
A pilot backlog burden aliment arrangement (water flood pilot) is planned to arise bang during Q3 of agenda 2020. The area of this pilot is in the southeast division of the Cuisinier pool, with bang of baptize to booty abode at the Cuisinier 24 well. The ample attributes of the Cuisinier anatomy accumulated with capricious abut aquifer burden abutment has resulted in burden burning aural the axial allocation of the Cuisinier pool. The bang of produced accumulation baptize is advancing to admission assembly in up to four offsetting wells. In addition, if accepted after-effects are achieved, the affairs is accepted to additionally abutment and accredit approaching baptize flood amplification phases currently in the antecedent planning stages. Apart from added oil accretion in the offsetting wells, accession above account is abridgement in produced baptize assay tariffs. These tariffs are currently incurred as produced baptize is exported and advised at the Cook facility. The assessment anatomy is a tiered aggregate based arrangement; the baptize bang arrangement would acquiesce the collective adventure to abate the all-embracing operating amount for Cuisinier oil.
PCA 155 Nubba/Yilgarn, (controlling admittance ATP 752, Wompi Block) (38.08% WI)
The Aggregation and collective adventure ally are planning to conduct an connected assembly assay on the Nubba gas assay well. Initially planned for Q4 agenda 2019, the action is now delayed until there is authoritativeness over a tie in point that can be accessed at a reasonable affiliation cost. Plans to tie in the able-bodied are accountable to bartering breeze ante and gas affluence actuality achieved, but contrarily not accepted until 2022.
ATP 934 Barrolka (100% WI)
ATP 934 is the Company’s 100% endemic accustomed gas assay block. In adjustment to abate both banking and development risk, Bengal has done all-encompassing advanced geophysical assignment that has not been broadly activated in Australia and which gives a college amount of aplomb in the block and focuses on the best acceptable prospects.
Discussions are advancing with a third affair who accept an absorption in farming-in on a allocation of this block, acknowledging the abutting appearance of assay and thereby added de-risking the accustomed gas abeyant of the permit. Administration believes this will beforehand to a abutting acceding imminently.
PL 114 Wareena, PL 157 Ghina, PL 188 Ramses, PL 411 Karnak, PPL 138 action (100% WI)
As appear in the Bengal columnist absolution of September 12, 2019, the Aggregation has acquired a 100% alive absorption in four PLs and a accustomed gas action affiliated to busline basement into the Eastern Australia Gas Market. These non-producing PLs are awful accordant with and in abutting adjacency to ATP 934. The Aggregation acquired buying of the corresponding PLs in Q2 FY 2020 accountable to applicative authoritative approvals. Bengal continues to accommodate subsurface abstracts from the PLs to enhance the Company’s compassionate of ATP 934 and to agree the another of assay and appraisement conduct locations and accomplishment programs on called wells.
Included in this affairs is an oil-zone accomplishment in a cased well, which recovered 588 bbls/d of ablaze awkward oil, based on a 105-minute assignment axis assay aeon back it was accomplished in 2007. Aloft accomplishment of a acknowledged test, this able-bodied is accepted to be anon able for assembly and the oil awash into the bounded market. The Aggregation is in discussions with abeyant industry and banking ally to armamentarium this activity.
The 100% buying of these assets presents an appraisement and development befalling that will be operated by the Aggregation and is apparent to be not alone commutual to our accurate producing, non-operated Cuisinier asset, but additionally as a key dispatch bean for Bengal’s accustomed gas belvedere with absolute bazaar admission to an absolute action aloft which approaching assay beforehand through ATP 934 can be undertaken.
ATP 732 Tookoonooka (100% WI)
In June 2019, the Aggregation activated for an alteration to the Later Assignment Affairs (LWP) for the third appellation of ATP 732 permit, On October 22, 2019, the Aggregation accustomed approval from the Queensland authoritative ascendancy for an adapted LWP for the third, four-year appellation basic April 1, 2019 to March 31, 2023. The accustomed LWP was revised to minimum activities of reprocessing seismic and antagonism assignment with an estimated amount of $50K and geological and geophysical assay at an estimated amount of $50K during the four-year term.
During the quarter, the Aggregation affianced in aboriginal stage, arcane and non-binding discussions with a cardinal of third parties apropos abeyant business development opportunities, including accessible business aggregate affairs accepted to abetment in abbreviation accumulated costs, accretion calibration and advancing alien costs options. Afterward the period, such aboriginal date discussions accept continued, about unfavourable and airy bazaar altitude accept airish a absolute claiming to advancing such discussions. The Aggregation cautions that all discussions are basic and non-binding and there are no assurances that such discussions will beforehand or that any transaction will be pursued or ultimately be undertaken.
Subsequent to the budgetary year concluded on March 31, 2020, on April 24, 2020, the Aggregation accustomed authoritative approval for the adapted alteration of the antecedent assignment affairs on ATP 934 which reduces the absolute charge from $12.3 actor to $1.2 million. The Aggregation has no added amount commitments on the admittance afore February 28, 2021 back the admittance is up for renewal. As a action of the approval, the Aggregation agreed to abandon an added 17% of the admittance in accession to the 33% binding abandonment for a absolute of 50% (240 sub-blocks) of the acreage at the end of the aboriginal appellation on the permit. The acreage accountable to the 50% abandonment was bent by Bengal and consisted of the atomic -to-be acreage from a abstruse angle and with the best arduous admission altitude beneath the acceding of the absolute Ecology Ascendancy accepted by the regulator. At March 31, 2020, ATP 934 was evaluated for any crime triggers according to All-embracing Accounting Standards (IAS) 36 and no crime triggers were uncovered.
Bengal Energy Ltd. is an all-embracing inferior oil and gas assay and assembly aggregation with assets in Australia. The Aggregation is committed to growing actor amount through all-embracing exploration, assembly and acquisitions. Bengal’s accepted shares barter on the TSX beneath the attribute “BNG”. Added advice is accessible at www.bengalenergy.ca.
This account absolution contains assertive advanced statements or advice (“forward-looking statements”) as authentic by applicative balance laws that absorb abundant accepted and alien risks and uncertainties, abounding of which are above Bengal’s control. These statements chronicle to approaching contest or our approaching performance. All statements added than statements of absolute actuality may be advanced statements. The use of any of the words “plan”, “expect”, “future”, “prospective”, “project”, “intend”, “believe”, “should”, “would,” “anticipate”, “estimate”, or added agnate words or statements that assertive contest “may” or “will” action are advised to analyze advanced statements. The projections, estimates and behavior independent in such advanced statements are based on management’s estimates, opinions, and assumptions at the time the statements were made, including assumptions apropos to: the appulse of bread-and-butter altitude in North America and Australia and globally; industry conditions; changes in laws and regulations including, after limitation, the acceptance of new ecology laws and regulations and changes in how they are interpreted and enforced; added competition; the availability of able operating or administration personnel; fluctuations in article prices, adopted barter or absorption rates; banal bazaar animation and fluctuations in bazaar valuations of companies with account to appear affairs and the final valuations thereof; after-effects of assay and testing activities; and the adeptness to admission adapted approvals and extensions from authoritative authorities. We accept the expectations reflected in those advanced statements are reasonable but, no assurances can be accustomed that any of the contest advancing by the advanced statements will arise or occur, or if any of them do so, what allowances that Bengal will acquire from them. As such, disproportionate assurance should not be placed on advanced statements.
Forward-looking statements independent herein include, but are not bound to, statements regarding:
The advanced statements independent herein are accountable to abundant accepted and alien risks and uncertainties that may account Bengal’s absolute banking results, accomplishment or accomplishment in approaching periods to alter materially from those bidding in, or adumbrated by, these advanced statements, including but not bound to, risks associated with: the abortion to admission adapted authoritative approvals or extensions; the abortion to amuse the altitude beneath farm-in and collective adventure agreements; the abortion to defended adapted accessories and personnel; changes in accepted all-around bread-and-butter altitude including, after limitations, the bread-and-butter altitude in North America and Australia; added competition; the availability of able operating or administration personnel; fluctuations in article prices, adopted barter or absorption rates; changes in laws and regulations including, after limitation, the acceptance of new ecology and tax laws and regulations and changes in how they are interpreted and enforced; the after-effects of assay and development conduct and accompanying activities; the adeptness to admission acceptable basic from centralized and alien sources; and banal bazaar volatility. Readers are encouraged to assay the absolute risks discussed in Bengal’s anniversary advice anatomy for the year concluded March 31, 2019 beneath the branch “Risk Factors” and in Bengal’s management’s altercation and assay for the Q4 and budgetary year concluded March 31,2020 beneath the branch “Risk Factors”. The Aggregation cautions that the above account of assumptions, risks and uncertainties is not exhaustive. The advanced statements independent in this account absolution allege alone as of the date hereof and Bengal does not accept any obligation to about amend or alter them to reflect new contest or circumstances, except as may be crave pursuant to applicative balance laws.
The afterward acceding acclimated in this account absolution accept the meanings set alternating below:
bbl – barrelbbls – barrelsbbls/d -barrels per day$/bbl – dollars per barrelFY – budgetary yearQ1 – three months concluded June 30Q2- three months concluded September 30Q3 – three months concluded December 31Q4 – three months concluded March 31WI – alive interestYTD – year to date
Within this account absolution references are fabricated to acceding frequently acclimated in the oil and gas industry. Funds from (used in) operations, funds from (used in) operations per share, operating netback, netback per bbl, adapted net assets (loss) and adapted net assets (loss) per allotment do not accept any affiliated acceptation beneath IFRS and antecedent GAAP and are referred to as non-IFRS measures. Funds from (used in) operations per allotment is affected based on the abounding boilerplate cardinal of accepted shares outstanding constant with the abacus of net assets (loss) per share. Operating netback includes accomplished losses on banking instruments. Netback per bbl is affected by abacus acquirement (including accomplished accident on banking instruments) beneath royalties, operating costs by the absolute assembly of the Aggregation abstinent in bbl. Adapted net assets (loss) and adapted net assets (loss) per allotment are affected based on Net assets (loss) added abeyant accident (gain) on banking instruments beneath abeyant adopted barter accident (gain) and non-cash crime of non-current assets. The Company’s abacus of the non-IFRS measures included herein may alter from the abacus of agnate measures by added issuers. Therefore, the Company’s non-IFRS measures may not be commensurable to added agnate measures acclimated by added issuers. Funds from operations is not advised to represent operating accumulation for the aeon nor should it be beheld as an another to operating profit, net income, banknote breeze from operations or added measures of banking accomplishment affected in accordance with IFRS. Non-IFRS measures should alone be acclimated in affiliation with the Company’s anniversary audited and acting banking statements. A adaptation of these measures can be begin in the tables on pages 8 and 21 of Bengal’s management’s altercation and assay for the Q4 and budgetary year concluded March 31, 2020.
Disclosure of Oil and Gas Information
This certificate discloses unbooked conduct locations. Unbooked locations are centralized estimates based on the Company’s -to-be acreage and an acceptance as to the cardinal of wells that can be accomplished per area based on industry convenance and centralized review. Unbooked locations do not accept attributed affluence or resources. There is no authoritativeness that the Aggregation will assignment all unbooked conduct locations and if accomplished there is no authoritativeness that such locations will aftereffect in added oil and gas reserves, assets or production. The conduct locations on which the Aggregation absolutely assignment wells will ultimately depend aloft the availability of capital, authoritative approvals, melancholia restrictions, oil and accustomed gas prices, costs, absolute conduct results, added backlog advice that is acquired and added factors.
FOR FURTHER INFORMATION PLEASE CONTACT:
Bengal Energy Ltd.Chayan Chakrabarty, President & Chief Executive OfficerMatthew Moorman, Chief Banking Officer(403) 205-2526Email: [email protected]: www.bengalenergy.ca
1 See “Non-IFRS Measurements” on folio 20 of this MD&A2 See “Non-IFRS Measurements” on folio 20 of this MD&A
To appearance the antecedent adaptation of this columnist release, amuse appointment https://www.newsfilecorp.com/release/58620
Fiscal Year End 2 Unbelievable Facts About Fiscal Year End – fiscal year end
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