Bengal Energy Ltd. achieved positive initial results from its pilot waterflood activities in its joint-venture Cuisinier oil field in Queensland, Australia. Based on the field Operator Santos's analysis of field performance since the water flood pilot commenced, the Company will recommend to the Operator that the water flood program be extended to other wells in the Cuisinier field. The Operator began injecting water into the Cuisinier 24 well in December of 2021, which reversed the downward trend of production at certain other wells in the area.

Specifically: The strongest performing wells, Cuisinier 15, 16, and 25, have all shown moderate increases in oil rate since the waterflood pilot came online. Cuisinier 9, 20, and 28 have also shown improvement, although starting from a lower initial rate. All the wells monitored experienced a gross cumulative oil rate rise in September 2022 of about 35 bopd in total according to the Operator.

Absent the impact of several wells that were shut-in for various operational reasons, the joint venture has observed encouraging evidence to suggest that the overall field decline has been arrested with even a general upward trend in oil rate since December 2021.