Bengal Energy Ltd. announce that water shut-off operations at its Wareena 1 and Wareena 5 sites have been completed successfully. The water shut-off operations at the two Wareena sites were completed on time and on budget, with initial results that may support the Company's plans for further interventions designed to increase natural gas flow. Subject to the success of these interventions and positive test results, Bengal will evaluate its future capital and commercial plans to tie-in the wells to allow for commercial production and sale of natural gas from the wells.

At Wareena 1, the wellhead pressure was approximately 2,300 pounds/square inch, based on a measurement taken prior to the workover in 2021. However, there was considerable cross flow of water from the dominant lower watered out zone which resulted in diminished well performance. Post water shut-off, the fluid level increased and the Company is monitoring the well.

This data supports the Company's expectation that the reservoir should be capable of flowing commercial volumes of natural gas following the remediation of perforation damage resulting from more than eight years of inactivity. The Company intends to re-perforate all of the PC-20 sand and swab and test the well. These operations are expected to occur as soon as equipment and contractors are available.

At Wareena 5, the Company has been monitoring the well post water shut-off and the data indicates that the PC- 20 sand was likely impaired during the well's shut-in period of more than eight years. The Company intends to re-perforate all of the PC-20 sand and swab and test the well in concert with its operations at Wareena 1. The Company has also reported the deployment of its Early Oil Production System (the "Bengal EOPS") at the Caracal 1 production area in Australia's Cooper Basin. The successful commissioning of the Bengal EOPS - a mobile Lufkin "Road Runner" Pumping Unit - allows for oil production from Bengal's wells as well as being able to offer pumping services to third parties.

Further evaluation is required to assess the commercial viability of the Caracal 1 well for long term oil production.