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, 2018 entitled Reserves Assessment and Evaluation of Oil and Gas Properties – Corporate Summary, prepared in accordance with NI 51-101 and the COGEH.

Proved + Probable Reserves

2014 to 2015 Value
Growth Year Over Year

17%

2015 to 2016 Value
Growth Year Over Year

-12%

2016 to 2017 Value
Growth Year Over Year

14%

2017 to 2018 Value
Growth Year Over Year

19%

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, 2018

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 448 421 – – – 448 421
NON-PRODUCING   32   30 – – – –   32   30
PROVED UNDEVELOPED 2,103 1,974 – – – – 2,103 1,974
TOTAL PROVED 2,583 2,425 – – – – 2,583 2,425
PROBABLE 3,832 3,596 – – – – 3,832 3,596
TOTAL PROVED PLUS PROBABLE 6,416 6,021 – – – – 6,416 6,021

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.