Mr. Chayan Chakrabarty reports

BENGAL ENERGY ANNOUNCES FISCAL 2024 THIRD QUARTER RESULTS

Bengal Energy Ltd. has released its financial and operating results for the third quarter of fiscal 2024 ended Dec. 31, 2023.

THIRD-QUARTER FISCAL 2024 HIGHLIGHTS:

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

Financial Summary:

Sales revenue - Crude oil sales revenue was $1.6 million in the third quarter of fiscal 2024 and fiscal 2023. Brent reference price was 5% lower at US$83.73/bbl in Q3 fiscal 2024 compared to US$88.56/bbl in Q3 fiscal 2023 and production was 3% lower compared to the prior year's quarter.

Funds from (used in) operations1 - Funds used in operations was $0.1 million during Q3 fiscal 2024 compared to 35 thousand used in Q3 fiscal 2023.

Net income - Bengal reported a net loss of $0.5 million for the current quarter compared to net loss of $0.4 million in Q3 fiscal 2023.

Operational Summary:

Production volumes - The Company's share of total Cuisinier production in the current quarter was 16,013 bbls (174 bbl/d), a decrease of 3% compared to production of 16,532 bbls (180 bbl/d) in the third quarter of fiscal 2023. During the current quarter, the Cuisinier C28 and C20 wells were intermittently offline in October and December resulting in approximately 19 bopd lower production.

Capital expenditures - There was limited capital activity during the current quarter compared to Q3 fiscal 2023 when the Company was actively working on its development projects at Wareena 1 and Wareena 5 and completed activities at Caracal-1. Bengal has delayed its Wareena testing program until further capital funding is available.

Bengal has filed its consolidated financial statements and management's discussion and analysis for the quarter end December 31, 2023, with the Canadian securities regulators. The documents are available on SEDAR at www.sedarplus.com or by visiting Bengal's website at www.bengalenergy.ca.

BUSINESS OVERVIEW

Bengal's producing and non-producing assets are situated 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, Petroleum Lease ("PL") 303 Cuisinier, Authority to Prospect ("ATP") 934 Barrolka, ATP 732 Tookoonooka, and four recently acquired petroleum licenses 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. 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. In addition, Bengal owns a 26km 6" high pressure gas pipeline (PPL 138) connecting the Wareena field to a large raw gas network passing Bengal's prospects at ATP 934.

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 Potential Commercial Area ("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 PCAs 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 a 100% working interest in four PLs including a producing pipeline license 138 ("PPL 138") adjacent to the 100% owned ATP 934.

Following extensive public consultation, the Queensland government released in late December 2023, a document outlining its plans for increased restrictions to petroleum activities within the rivers and floodplains area of the Lake Eyre Basin (LEB) catchment. Bengal Energy areas affected by this are the western portion of the Durham Downs block (ATP 934) where Bengal holds a 40% interest, PCA 115 (Nubba) in which Bengal holds a 38% interest, and the petroleum leases of Karnak and Ramses (PL 411 and PL188 respectively). Of these permits, work can continue to develop gas resources under a petroleum lease, all other permits will have until August 30, 2024, to obtain a petroleum lease before all activities will need to cease. Volumes at Nubba are too small for commerciality, and Bengal will move to relinquish this block. For Durham Downs East, the operator Santos has been approached for their views and a way forward. Santos are currently formulating a response to the government as their exposure is much larger. Neither of these assets have any carrying value in the Company's financial statements. Prospects within Barrolka East (ATP 934 - 100% WI), Ghina (PL 1109 - 100% WI), Wareena (PL1110-100% WI) and Tookoonooka (PCA 332 - 100% WI) are unaffected.

AUSTRALIA - Cooper Basin, Queensland

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

The Company continues to evaluate the results of its pilot water injection program at Cuisinier. The injection of produced formation water has resulted in both increased production in up to four offsetting wells and reduced water handling charges. On establishing success of the pilot, the Joint Venture ("JV") will begin a multi-staged water injection scheme, targeted fracture stimulation and more commercially efficient development drilling. Whilst the JV has observed compelling evidence that the overall field decline has been temporarily arrested with a modest upward trend in oil production rate during the previous quarters, the pilot has suffered from extended shut-in periods due to equipment failure and is waiting on replacement parts. The pilot was intermittently operational during Q3 F2024.

Bengal's joint venture partner and operator of the Cuisinier pool drilled four wells in the Cuisinier field during calendar 2023. The Company did not participate in this program based on its internal economic hurdles and given that the operator has not prepared a suitable field development plan including the water injection pilot and subsequent expansion, and the operator's projected capital and operating costs make such investment less attractive to Bengal 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 and in close 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 justified. If this testing yields commercial rates, Bengal will tie-in the producing well to pipeline PPL 138. In the meantime, gas from Wareena 5 is supporting Bengal's early gas production pilot.

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)

Bengal conducted an acid treatment in 2022 on the Caracal-1 well to improve well bore inflow with positive results and moderate inflow of very light 53-degree gravity oil from the Wyandra zone. While not immediately commercially viable, these results are being evaluated with the possibility of fracture stimulation to further enhance productivity being put in place. Following fracture stimulation, the well could commence production using the Company's Early Oil Production System with the addition of storage and load-out infrastructure. The well is currently suspended with shut-in pressure data being monitored.

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 the Later Work Permit ("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. The relinquishment was accepted by the regulator during April of 2023. The relinquished area was not considered 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.

Non-IFRS and Other Financial Measures

Non-IFRS Financial Measures

Within this Press Release, references are made to terms commonly used in the oil and gas industry. Operating netback, operating netback per barrel, funds from operations, funds from operations per share, adjusted net income, and adjusted net income per share do not have any standardized meaning under IFRS and are referred to as non-IFRS measures. Management believes the presentation of the non-IFRS measures above provides useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.

Operating Netback

Bengal utilizes operating netback as a key performance indicator and is utilized by Bengal to better analyze the operating performance of its petroleum and natural gas assets against prior periods. Operating netback is calculated oil sales deducting royalties and operating expenses. The following table reconciles petroleum and natural gas revenue to netback:

Funds from operations

Management utilized funds from operations as a measure to assess the Company's ability to generate cash not subject to short-term movements in non-cash operating working capital. Funds from operations is calculated by adding back all non-cash expense deductions to the net loss for the quarter and year. The following table reconciles cash from operations to funds from (used in) operations, which is used in this MD&A:

Working capital

Bengal uses working capital to monitor its capital structure, liquidity, and its ability to fund current operations. Working capital is calculated as current assets less current liabilities but excludes other obligations and the current portion of decommissioning obligations.

Non-IFRS Financial Ratios

Bengal uses operating netback per share to assess the Company's operating performance on a per unit of production basis. Operating netback per barrel equals operating netback divided by the applicable number of barrels.

Bengal uses funds from operations per share to assess the ability of the Company to generate the funds necessary for financing, operating, and capital activities on a per-share basis. This is a non-IFRS measure calculated by dividing funds from operations by weighted average basic and diluted shares outstanding for the periods disclosed.

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". Additional information is available at www.bengalenergy.ca

We seek Safe Harbor.