Bengal plans Ramses 2 well test in Cooper basin under funding deal

Bengal Energy signed a non-binding letter of intent with an Australian energy services company to fund and execute a production test on the Ramses 2 oil well in the Cooper basin, Queensland. The program will target the Jurassic Poolowanna formation in the currently shut-in well, which previously tested at an extrapolated rate of 588 bbl/d of 37° API oil during a drill stem test conducted in 2007.

Under the proposed agreement, the investor will fully fund the production test and, subject to positive results, will also fund the completion, equipping and tie-in of the well for production. Bengal will retain 100% ownership and operatorship of the PL 188 license while being fully carried on development costs.

If the well is brought into production, revenues will be split 75% to the investor and 25% to Bengal until costs are recovered, after which the parties will share production on a 50/50 basis.