Mr. Chayan Chakrabarty reports

BENGAL ENERGY ANNOUNCES FISCAL 2023 FOURTH QUARTER RESULTS

Bengal Energy Ltd. has released its financial and operating results for the fourth quarter of fiscal 2023 ended March 31, 2023.

Fourth-quarter fiscal 2023 highlights:

The following is an overview of the financial and operational results during the three-and twelve-months ending March 31, 2023. All amounts are in Canadian funds unless otherwise noted:

Financial Summary:

• Reserves - Bengal's independently evaluated Proved Plus Probable ("2P") reserves for the fiscal year ended March 31, 2023, are 5,477 thousand barrels of oil ("Mbbls") compared to 5,778 Mbbls at March 31, 2022. 2P 1P reserves are 2005 Mbbls compared to 2145 Mbbls at March 31, 2022. The lower reserves result primarily from the prior year's production without replacement during fiscal 2023. The net present value (NPV 10, before tax) of Bengal's 2P reserves, net of future development costs, at March 31, 2023 is $121 million, or $0.25 per share compared to $149 million at March 31, 2022. The 2P after tax net asset value is $95 million for the current year compared to $115 million in the prior year. The lower NPV is primarily the result of expected higher future development costs as a result of inflationary pressure across Queensland.
• Sales revenue - Reflecting lower oil prices, crude oil sales revenue was $2.0 million in the fourth quarter of fiscal 2023, which is 18% lower than the $2.4 million recorded in Q4 fiscal 2022. Full year fiscal 2023 sales revenue was $8.1 million compared to $7.7 million for the full year fiscal 2022.
• Funds from (used in) operations1 - Bengal used $0.4 million of funds in operations during Q4 fiscal 2023 compared to a $0.5 million funds from operations during Q4 fiscal 2022. For the full year fiscal 2022, the Company generated $2.0 million of funds from operations compared to $1.4 million funds used in operations during the prior fiscal year. During Q4 fiscal 2023, Santos, the Cuisinier joint venture operator, undertook a self-review with the Queensland Revenue Office relative to its royalty payments for the calendar years of 2015 through 2020. The result was a $3.0 million additional royalty liability ($0.9 million net to Bengal) assessed to the Cuisinier Joint Venture. The net amount was recorded as an offset to other income for the quarter ended March 31, 2023. Santos is currently reviewing their royalty obligations and Bengal is disputing these additional charges under its Joint Operating Agreement; however, the Company has recorded the full net amount as an offset to other income for the quarter ended March 31, 2023. Absent this unusual royalty adjustment, the Company's funds from operations would be $0.5 million for the quarter and $2.9 million for the year.
• Net income - Bengal reported a net loss of $0.8 million for the current quarter compared to net income of $0.2 million in the fourth quarter of fiscal 2022. For the full year fiscal 2023, the Company reported net income of $0.7 million compared to a net loss of $0.4 million in the prior year.

(1) Non-IFRS and Other Financial Measures are defined in the Non-IFRS and Other Financial Measures section of this press release.

Net income during the current quarter was materially impacted by the royalty adjustment described above. Net income for the year was also positively impacted by $1.1 of million other income related to the settlement of a crude oil stock discrepancy recorded in Q2 fiscal 2023 as well as a $0.9 million offset to other income related to the Cuisinier royalty adjustment described above.

Operational Summary:

• Production volumes - The Company's share of total production in the current quarter was 16,395 bbls of light crude oil, which is a 4.8% increase from the 15,647 bbls produced in the fourth quarter of fiscal 2022. The current quarter production averaged 182 bbls/day compared to 174 bbls/day produced in the fourth quarter of fiscal 2022. Full year fiscal 2023 saw total production of 65,680 bbls compared to 66,797 bbls for full year fiscal 2022. The full year fiscal 2023 production per day averaged 180 bbls compared to 183 bbls/day for the full year fiscal 2022.
• Capital expenditures - During the year, the Company continued capital programs on two of its 100% owned and operated projects at Wareena (Petroleum Lease ("PL") 1110 & Producing Pipeline ("PPL") 138) and Caracal (Authority to Prospect ("ATP") 732). Bengal incurred $0.4 million in capital expenditures during Q4 fiscal 2023 as compared to $2.2 million in Q4 fiscal 2022 and a total of $7.7 million during the current year compared to $4.3 million during fiscal 2022.

Bengal has filed its consolidated financial statements and management's discussion and analysis for the year ended March 31, 2023, with the Canadian securities regulators. The documents are available on SEDAR or by visiting Bengal's website.

BUSINESS OVERVIEW

Bengal's producing and non-producing assets are situated primarily in Australia's Cooper Basin, a region featuring large accumulations of very light and high-quality crude oil and natural gas. The Company's core Australian assets, PL 303 Cuisinier, ATP 934 Barrolka, ATP 732 Tookoonooka, the recently granted Potential Commercial Area ("PCA") 332 and its four 100% operated petroleum licenses (PL 114 Wareena, PL 157 Ghina, PL 188 Ramses, PL 411 Karnak) are situated within an area of the Cooper Basin that is well served with production infrastructure and take-away capacity for produced crude oil and natural gas. While still in early stages in terms of appraisal and development, Bengal believes these assets offer attractive upside potential for both oil and gas. Australia presents a stable political, fiscal, and economic environment in which to operate, and a favourable royalty regime for oil and gas production.

Under the State of Queensland Regulatory process, ATPs are granted by the State generally for a period of twelve years with one third of the original grant area expiring every four years. At the end of the final term of the ATP, an application can be made to continue a portion of the permit in the form of a PCA. PCAs have a life span of five to fifteen years. PCA applications include a commercial viability report that indicates that the area is likely to be commercially viable within the applied term. This allows for extra time to commercialize the resource. These PCA's remain a part of the ATP until expiry. If a discovery of oil or gas is made, an application for a PL is made to allow for production. PLs are granted for up to a thirty-year term.

Bengal has two PLs on the former ATP 752 Barta block, PL 303, and PL 1028, in addition to three PCAs, PCA 206, PCA 207 Barta West and PCA 155 Wompi block-Nubba/Yilgarn. Bengal also holds four PLs including a producing pipeline license ("PPL") 138 adjacent to the 100% owned ATP 934.

AUSTRALIA - Cooper Basin, Queensland

PL303 and PL 1028 Cuisinier (controlling permit ATP 752) (30.357% WI)

A pilot water injection-driven reservoir pressure maintenance scheme was initiated and after resolving mechanical issues, water injection activities commenced during calendar Q4 2021. This project is located in the southeast quadrant of the Cuisinier pool, with injection of water taking place at the Cuisinier 24 well. The broad nature of the Cuisinier structure combined with variable flank aquifer pressure support has resulted in pressure depletion within the central portion of the Cuisinier pool. The injection of produced formation water is anticipated to both increase production in up to four offsetting wells and reduce water handling charges. On establishing success of the pilot, the Joint Venture will begin a multi-staged water injection scheme, targeted fracture stimulation and more commercially efficient development drilling. The Joint Venture has observed compelling evidence that the overall field decline has been temporarily arrested with a modest upward trend in oil production rate in affected wells during the current quarter.

Bengal's joint venture partner and operator of the Cuisinier pool has indicated its intent to drill four wells in the Cuisinier field during calendar 2023. Bengal will not participate in this program given that the operator has not prepared a suitable field development plan considering the water injection pilot and projected capital and operating costs make such investment less attractive than alternatives available in Bengal's inventory.

PL 114 Wareena, PL 157 Ghina, PL 188 Ramses, PL 411 Karnak, PPL 138 pipeline (100% WI)

The Company has a 100% working interest in four PLs and a natural gas pipeline connected to transportation infrastructure into the Eastern Australia Gas Market. These non-productive PLs are highly compatible with theclose proximity to ATP 934. Bengal continues to integrate subsurface data from the PLs to enhance the Company's understanding of ATP 934 and to finalize the selection of exploration and appraisal drilling locations.

Included in this program is the reinstatement of two gas wells and an existing gas pipeline to produce raw gas into existing infrastructure at PL 114 Wareena. The Company completed workover activities at Wareena 1 and Wareena 5 in November 2022. Initial test results indicate Wareena 1 would require additional stimulation and dewatering to yield commercial production rates. The Company is encouraged by wellhead pressure measured at Wareena 5 and therefore additional testing is planned subject to the availability of equipment. If this testing yields commercial rates, Bengal will tie-in the producing well to pipeline PPL 138. The Company is investing in a proprietary proof of concept arrangement to allow commercial gas production prior to a pipeline connection with all required equipment now on site.

The 100% ownership of these assets presents an appraisal and development opportunity that will be operated by the Company and is seen as a key steppingstone for Bengal's natural gas platform upon which future development and appraisal work at the existing PLs and exploration growth through ATP 934 can be undertaken.

ATP 732 Tookoonooka (100% WI)

The Company has conducted preliminary workover and stimulation program at the Caracal-1 well, a 53 API oil discovery in the Wyandra zone. The well produced oil to surface, although at lower-than-expected rates and is currently being assessed to determine capacity for commercial production versus drilling a more optimally placed appraisal well to assess the extent of the structure.

In June 2019, the Company applied for an amendment to the LWP ("Later Work Program") for the third term of ATP 732 permit. On October 22, 2019, the Company received approval from the Queensland regulatory authority for an amended LWP for the third, four-year term commencing April 1, 2019, to March 31, 2023. The approved LWP was revised to minimum activities of reprocessing seismic and inversion work with an estimated cost of $0.05 million and geological and geophysical investigation at an estimated cost of $0.05 million during the four-year term.

ATP 732 reached the end of its term in March of 2023 and the Company lodged an application over the northern portion of the ATP for continuation in the form of PCA 332 for a further 15 years. Based on the positive results from Caracal-1, the application was approved on January 30, 2023. In addition, the Company is assessing farm-in interest on other 3D defined drilling targets on PCA 332. The PCA, granted by the Queensland Government in record time, provides much-needed certainty for Bengal to focus on its hydrocarbon projects in the Talgeberry-Tintaburra corridor. The majority of PCA 332 is covered by 3D seismic which has outlined the prospective targets as described in the Company's press release: "Bengal Energy Announces Independent Oil and Natural Gas Resource Report" dated March 30, 2022.

ATP 934 Barrolka East (100% WI)

ATP 934 is the Company's 100% owned natural gas exploration block. Bengal received approval of a special amendment for ATP 934 in March 2021 which relinquished 50% of the existing ATP area and extended the term of the ATP by entering an outcome based LWP for another 6 years to February 28, 2027. As part of the special amendment, another relinquishment of 118 sub blocks (50% of the remaining sub blocks) (88,972 acres) was required by February 28, 2023. This relinquishment was accepted by the regulator during April of 2023. The relinquished area was not considered to be prospective by the Company due to the lack of identified prospects and limited physical access. The LWP includes the drilling of up to 3 wells and 260 km2 of 3D seismic.

ATP 934 Durham Downs East Farmout Block (40% WI)

Bengal entered into an agreement with Santos in July of 2020 to farm-in on a portion of the ATP 934 block. Santos carried the drilling costs of one well to earn a 60% operated interest in the ATP 934 southern farm- out block, which represents 57.8% of the total block acreage post April 2020 relinquishment. On October 14, 2021, Santos completed the drilling of the Legbar-1 exploration well. Santos paid 100% of the costs to drill, plug and abandon the well and has accordingly earned a 60% working interest in 103,760 km2 gross exploration land.

While the Legbar-1 Well did not indicate commercial quantities of hydrocarbons, thick, high quality reservoir sands were encountered in the primary Permian Toolachee formation and in the Jurassic Birkhead zone, with evidence of residual hydrocarbon saturation in both zones. In addition, fluorescence shows and elevated gas readings through the Jurassic Birkhead Fm/Top Hutton Sandstone indicate oil has passed through the reservoir, supporting the search for a valid closure to test this play. The findings from the Legbar-1 well will help Bengal refine its exploration targets going forward, both with Santos in the Santos Farm-out Block, and across the balance of ATP 934 which is 100% owned by Bengal.

Business Development

The Company is in discussions with potential industry and financial partners to fund some of these oil and gas related activities.

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia. The Company is committed to growing shareholder value through international exploration, production, and acquisitions. Bengal's common shares trade on the TSX under the symbol "BNG".

We seek Safe Harbor.