Bengal Energy International named provisional winner of offshore India block

India’s Directorate General of Hydrocarbons has named Bengal Energy International Inc. (BEII) the provisional winner of block CY-OSN-2009/1.

Offshore staff

CALGARY, Canada -- India’s Directorate General of Hydrocarbons has named Bengal Energy International Inc. (BEII) the provisional winner of block CY-OSN-2009/1.

Block CY-OSN-2009/1 is in the shallow offshore area of the southern Cauvery basin and encompasses 1,362 sq km (526 sq mi). BEII will be operator of the block and holds a 100% interest.

The winning bid requires BEII to acquire 310 line km (193 mi) of 2D seismic data and 81 sq km (31 sq mi) of 3D seismic data during the first four years of the seven-year exploration phase. The committed work program capital expenditure is estimated at $2 million. Drilling will be required to hold the block after the first four years of exploration is complete.

The company’s identified prospects will need further technical work to become drill-ready. At least one seismically defined feature could be up to 64 sq km (25 sq mi), the company reports.

BEII expects to sign a production sharing contract with the government of India in January 2010, which will turn the provisional award of block CY-OSN-2009/1 into a formal agreement.

10/22/2009

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