BNG Bengal Energy Ltd

Bengal Energy Ltd. (TSX:BNG) ("Bengal" or the "Company") is pleased to announce
that it has signed an indicative term sheet for a US $20.0 million secured
credit facility (the "Facility") with a leading Australian commercial bank (the
"Lender"), and provides an update on its Cuisinier exploration program. 


US $20 Million Secured Credit Facility

The Facility contemplates a borrowing base of up to US $20 million, over a three
year term at attractive fixed income market rates tied to USD LIBOR to fund its
ongoing Australian development. The Company has thoroughly stress tested its
existing production base to ensure that this Facility and Bengal's existing
unsecured debt are fully serviceable in multiple commodity price scenarios.


The initial draw on the Facility will fund past costs associated with the
Company's Cuisinier Phase 1 drilling program and further draws are expected to
fully fund its Australian development through March 2015 as well as anticipated
future development. With the Facility in place, Management expects to be able to
fund future planned exploration activities in India and Australia through
internally generated cash flows. 


The Facility remains subject to the completion of due diligence by the Lender
and the entering into of a final Offer to Finance with Bengal and will remain
open for a fixed period to allow Bengal to review other competitive lending
proposals received. Management expects an average cost of capital over the term
of its finalized Facility to be within the range of five to seven percent.


"The establishment of a reserve-based facility by a leading international bank
provides another milestone in the development of Bengal's world-class Cuisinier
oil play. The Facility provides greater financial flexibility and enhanced
predictability of our free cash flow," said Chayan Chakrabarty, Bengal's
President and CEO. "Together with our existing cash flow and working capital,
this Facility will provide us with the capital needed to fund our ongoing
capital program, offer us the flexibility to finance additional development
opportunities, and free up internally generated cash flows for the financing of
other potential exploration opportunities in Australia and India."


Bengal's existing CAD $8 million (10% coupon) and CAD $1.8 million (10% coupon)
unsecured notes remain outstanding with maturities on July 31, 2015 and January
31, 2016 respectively. 


Cuisinier 2014 Exploration Program Update

As previously announced, Bengal and its joint venture partners plan to drill two
exploration wells in the second and third quarters of calendar 2014 in the
Cuisinier (Barta Sub Block, ATP 752) area. These two exploration wells will
target both the Cuisinier-type productive Murta zone, as well as the deeper
Birkhead and Hutton zones. The Birkhead and Hutton formations have shown initial
production rates ranging from 500 to over 1,000 Bopd in other Cooper Basin
analog pools.


The first well is currently scheduled to spud in early June, with the second
well planned for mid-August 2014. Both wells will target independent structural
closures within the Company's Cuisinier North 3D area immediately adjacent to
the Cook and Cuisinier oil fields. 


In addition, Bengal expects to participate in a number of well stimulation
interventions in the Cuisinier Pool expected to increase production rates from
selected wells. This well stimulation program is expected to take place during
the third and fourth quarters of this calendar year. 


The Company also anticipates the completion and tie-in of its four remaining
development wells drilled at Cuisinier to begin in mid-July, and brought on-line
in September 2014. 


Bengal also advises that an updated presentation will be posted on the Company's
website on May 30, 2014, containing additional information about its operations
and strengthened financial position. 


About Bengal

Bengal Energy Ltd. (TSX:BNG) is an international oil and gas exploration and
production company with producing and prospective light oil-weighted assets in
Australia and India. Bengal offers exposure to lower risk, current production
and cash flow, combined with longer-term high, potential impact exploration
projects. The Company's strategy is to achieve per share growth in cash flow,
production and reserves while establishing an attractive portfolio of future
drilling and exploration opportunities. 


Additional information is available on our website at www.bengalenergy.ca.

Forward-Looking Statements 

This news release contains certain forward-looking statements or information
("forward-looking statements") as defined by applicable securities laws that
involve substantial known and unknown risks and uncertainties, many of which are
beyond Bengal's control. These statements relate to future events or our future
performance. All statements other than statements of historical fact may be
forward looking statements. The use of any of the words "plan", "expect",
"prospective", "project", "intend", "believe", "should", "anticipate",
"estimate", or other similar words or statements that certain events "may" or
"will" occur are intended to identify forward-looking statements. The
projections, estimates and beliefs contained in such forward looking statements
are based on management's estimates, opinions, and assumptions at the time the
statements were made, including assumptions relating to: the impact of economic
conditions in North America, Australia, India and globally; industry conditions;
changes in laws and regulations including, without limitation, the adoption of
new environmental laws and regulations and changes in how they are interpreted
and enforced; increased competition; the availability of qualified operating or
management personnel; fluctuations in commodity prices, foreign exchange or
interest rates; stock market volatility and fluctuations in market valuations of
companies with respect to announced transactions and the final valuations
thereof; results of exploration and testing activities; and the ability to
obtain required approvals and extensions from regulatory authorities. We believe
the expectations reflected in those forward-looking statements are reasonable
but, no assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits that Bengal will derive from them. As such, undue reliance should
not be placed on forward-looking statements. Forward-looking statements
contained herein include, but are not limited to, statements regarding: the
entering into a US$20 million credit facility, the timing to drill two
exploration wells in Cuisinier North 3D area, conducting select well
stimulations, the timing to complete and tie-in four wells at Cuisinier and the
realization of the impact of such new production.

The forward looking statements contained herein are subject to numerous known
and unknown risks and uncertainties that may cause Bengal's actual financial
results, performance or achievement in future periods to differ materially from
those expressed in, or implied by, these forward-looking statements, including
but not limited to, risks associated with: the failure to obtain required
regulatory approvals or extensions; failure to satisfy the conditions under
farm-in and joint venture agreements; failure to secure required equipment and
personnel; changes in general global economic conditions including, without
limitations, the economic conditions in North America, Australia, India;
increased competition; the availability of qualified operating or management
personnel; fluctuations in commodity prices, foreign exchange or interest rates;
changes in laws and regulations including, without limitation, the adoption of
new environmental and tax laws and regulations and changes in how they are
interpreted and enforced; the results of exploration and development drilling
and related activities; the ability to access sufficient capital from internal
and external sources; and stock market volatility. Further, certain noted
production information provided in this press release may constitute "analogous
information" under applicable securities legislation, such as production rates
from wells drilled by other industry participants located in geographical
proximity to lands held by the Company. This information is derived from
publicly available information sources that the Company believes are
predominantly independent in nature however readers are cautioned that the
information may be in error, may not be analogous to the Company's land holdings
and/or may not be representative of actual results of wells anticipated to be
drilled or completed by the Company in the future. Readers are encouraged to
review the material risks discussed in Bengal's Annual Information Form under
the heading "Risk Factors" and in Bengal's annual MD&A under the heading "Risk
Factors". The Company cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking statements contained in
this news release speak only as of the date hereof and Bengal does not assume
any obligation to publicly update or revise them to reflect new events or
circumstances, except as may be require pursuant to applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Bengal Energy Ltd.
Chayan Chakrabarty
President & Chief Executive Officer
(403) 205-2526


Bengal Energy Ltd.
Jerrad Blanchard
Chief Financial Officer
(403) 205-2526
investor.relations@bengalenergy.ca
www.bengalenergy.ca

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