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In return for a cash payment of just A$311,221 in and promises of future cash payments of up to $1 million subject to certain conditions and commercial benchmarks being achieved Bengal has moved to 100% of the Barrolka permit by picking up AGL's 28.57% working interest.
Bengal said the undrilled permit's position on the under-exploited Cooper Basin gas fairway would be a focus for its exploration programs this year.
ATP 934 covers an area of 1462sq.km immediately surrounded by gas fields such as Whanto and Barrolka that produced 93.7 billion cubic feet of gas and associated liquids to June 2016 and continue to produce in excess of 17 million cubic feet per day, with newly completed wells being tied in what Whato potentially doubling that.
With 20 wells drilled in nearby blocks over the past two years Bengal believes it stands a good chance of making its own gas discoveries.
Half a dozen prospects have been mapped in the undrilled block in the Permian Toolachee formation at depths between 2700m and 2900m.
The company has undertaken a mix of 2D and 3D seismic to define its six prospects, all close to the Ghina and Coonaberry, and the chance of fining similar gas pool is considered high.
The top ranked prospect, Han Solo/Rouge, has an estimated 40m of structural relief, and is considered the best location to assess the play concept.
"This acquisition supports our continuing initiative to maximize Bengal's ownership and operatorship of its hydrocarbon prone permits in the Cooper Basin of Australia and provides additional flexibility relative to farm-out or financing activity," CEO Chayan Chakrabarty said.
"In this regard, Bengal is currently pursuing a number of financing alternatives to fund the first of three exploratory wells designed to evaluate the resource potential of the block by the end of calendar 2018."
Wells are expected to cost C$2.7 million on a dry-hole basis, or $4 million to complete, while a planned 3D survey over 260sq.km will cost a further $4.5 million.
Pipelines are in the immediate area, offering the potential for rapid commercialisation and sales into the eastern Australian gas market, where the 2017 Sydney gas spot prices averaged $9.06 per gigajoule.
Bengal is also planning up to two wells in ATP 752 with Santos and Bridgeport Energy to examine the fairway beyond the recent Shefu Murta oil discovery near the Cuisinier field.
EDIT: An earlier version of this article stated ATP 934 was AGL's last remaining upstream asset. This is incorrect. While AGL had attempted to sell all its assets, it withdrew from the sales process and retains several licences in Queensland and New South Wales, including the Camden CSG field.
