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 independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled Reserves Assessment and Evaluation of Oil and Gas Properties – Corporate Summary, prepared in accordance with NI 51-101 and the COGEH.

reserves 2016 2

2013 to 2014 Growth
Year Over Year

122%

2014 to 2015 Growth
Year Over Year

51%

2015 to 2016 Growth
Year Over Year

9%

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, 2016
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 382 353 – – – 382 353
NON-PRODUCING 12 11 – – – – 12 11
PROVED UNDEVELOPED 1,817 1,677 – – – – 1,817 1,677
TOTAL PROVED 2,212 2,041 – – – – 2,212 2,041
PROBABLE 3,992 3,683 – – – – 3,992 3,683
TOTAL PROVED PLUS PROBABLE 6,204 5,725 – – – – 6,204 5,725

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.