Operations

Reserves

As Bengal transitions from a pure exploration company to one with both production and exploration, we have successfully been able to book reserves. As we continue to drill, appraise and develop our assets, we would anticipate seeing additional activity reflected in positive revisions to our reserve report.

(1) Based on the independent reserve assessment and evaluation prepared by GLJ with an effective date of March 31, 2019 (the “GLJ Report”)., prepared in accordance with NI 51-101 and the COGEH.

The significant and continuing growth in Bengal’s reserve base is a direct result of the drilling and development activities undertaken in the Company’s Cuisinier Field, and demonstrates the inherent value of this large, ultralight oil weighted asset base.

Summary of oil and gas reserves as of March 31, 2019.

Forecast Prices and Costs

RESERVES
LIGHT AND
MEDIUM OIL		 NATURAL GAS NATURAL GAS
LIQUIDS		 TOTAL
RESERVES CATEGORY Gross
(Mbbl)		 Net
(Mbbl)		 Gross
(MMcf)		 Net
(MMcf)		 Gross
(Mbbl)		 Net
(Mbbl)		 Gross
(MBOE)		 Net
(MBOE)
TOTAL
PROVED DEVELOPED
PRODUCING 367 344 – – – 367 344
NON-PRODUCING  167  157 – – – –  167  157
PROVED UNDEVELOPED 1,723 1,617 – – – – 1,723 1,617
TOTAL PROVED 2,257 2,118 – – – – 2,257 2,118
PROBABLE 3,770 3,538 – – – – 3,770 3,538
TOTAL PROVED PLUS PROBABLE 6,026 5,656 – – – – 6,026 5,656

Notes:
(1) Estimates of reserves of natural gas include associated and non-associated gas.
(2) “Gross Reserves” are Company’s working interest reserves (operating and non-operating) before the deduction of royalties and without including any royalty interest of the Company.
(3) “Net Reserves” are Company’s working interest reserves (operating and non-operating) after deductions of royalty obligations plus the Company’s royalty interests.
(4) The numbers in this table may not add exactly due to rounding.