HIGH IMPACT EXPLORATION - In a Hot Eastern Australia Gas Market - - PowerPoint PPT Presentation

MAY 2017

HIGH IMPACT EXPLORATION - In a Hot Eastern Australia Gas Market

TSX: BNG

38%

Insider holdings

CORPORATE PROFILE

2

Financial Shares Outstanding (TSX:BNG) 102.3 MM Total Debt US $12.5 MM Market Capitalization @ $0.135/share (May. 1, 2017) $13.8MM Funds Flow from Operations (FFO) (Q3 FY 2017) $1.4M Corporate Reserves Values Btax PV10 (Mar. 31 2016)* Proved + Probable (P+P)(1) $103.8MM Equivalent Value per Basic Share $1.03 / share Operational Results Average daily light oil production (Q3 FY 2017) 355 bopd Operating netback(2) including hedging (Q3 FY 2017) $69.01 / bbl Operating netback(2) excluding hedging (Q3 FY 2017) $33.79 / bbl

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”. See also "Cautionary Statements" in the Appendix and Notes to this document.

* Independent third party reserves

Barta Cuisinier Wompi Barrolka Tookoonooka

COOPER BASIN

WOMPI TOOKOONOOKA BARTA

Existing pipelines HIGHLY PROSPECTIVE 1.1 MILLION GROSS ACRES (72% operated)

ATP 934 BARROLKA

Australian Growth Platform

• Fiscal stability and low government take
• Attractive commodity pricing
• High impact gas exploration - Barrolka (ATP 934)
• High netback production - Cuisinier large Oil-in-Place pool

with 27 of 28 wells successful

• Significant oil & gas exploration acreage at Tookoonooka and

Wompi

3

Operated Non-operated

A STRONG PLATFORM FOR FUTURE GROWTH

CUISINIER

EASTERN AUSTRALIA NATURAL GAS MARKET

4

• Eastern Australia disconnected from Northern

Territory and Western Australia markets

• Exports commenced from the first of three LNG

projects in Queensland in early 2015

• Expected to export over 1,400 Petajoules (PJ)(1)
• f gas a year
• Projects will reach full production between 2018

and 2019

Australia, East Coast Gas Flows

• 1. Moomba to Sydney
• 2. Queensland Gas
• 3. Roma to Brisbane
• 4. South West Queensland
• 5. Carpentaria
• 6. Moomba to Adelaide
• 7. Eastern Gas
• 8. SEA Gas
• 9. Tasmanian Gas

10.Longford to Melbourne Gas 11.NSW Victoria Interconnect

Rapid price increase driven by the expansion of Eastern Australia’s LNG capacity

PIPELINES

Source: Grattan Institute

Gladstone Queensland Curtis Australia Pacific

LNG Facilities

ONSHORE/OFFSHORE BASINS IN WESTERN AUSTRALIA ~ 1,300 KMS FROM KEY COOPER BASIN INFRASTRUCTURE

ATP 934 700 1,135 320

PJs/y(1)

Local demand Contracted LNG Additional LNG capacity

Source: McKinsey & Company, Australia, March 2017 “Meeting East Australia’s Gas Supply Challenge”

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”.

WHY GAS? WHY NOW?

5

• Current spot pricing ex Sydney of greater than

$12/GJ with an alarming upward trend.

• “On the east coast, spot prices on the

Brisbane Short Term Trading Market (STTM) more than doubled from an average of $3.13 per gigajoule (GJ) in Q4 2015 to an average of $7.36/GJ in Q4 2016, and have since climbed sharply higher to $10/GJ or more.”

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”.

2 4 6 8 10 12 14 16 18 20 12/1/2016 1/1/2017 2/1/2017

$AU/GJ Sydney Spot Gas Price

Spot Natural Gas Market (Sydney) TIGHTENING GAS MARKET DRIVING EASTERN AUSTRALIAN GAS PRICE INCREASES

• Coal Seam Gas assets require ~AUS $40 Billion to maintain

flat production to 2030

• New investment of at least AUS $10 billion in new

developments required

Source G. Bethune, EnerQuest Mar 7/17 Source: McKinsey, Australia, March 2017“Meeting East Australia’s Gas Supply Challenge”

East Australia projected supply demand dynamics, 2017–2030, PJ

1 Assumes capability to produce above nameplate capacity developed between 2020-25 SOURCE: CEDIGAZ; Wood Mackenzie—Upstream Data Tool Q3 2016 PJ

GAS PRODUCTION PROFILE – E. AUSTRALIA

Coal Seam Gas assets require AUS $40 billion to maintain flat production through 2030 With known development

• ffshore & onshore

production set to decline at 8.1% & 1.4% per year New gas exploration delayed by regulatory hurdles: average 12 years from Gazette of gas permit to first production

6

East Australia projected gas production, 2017–30, PJ

DRILL READY GAS PERMITS POISED TO TAP INTO UNDERSUPPLIED EASTERN AUSTRALIA MARKET

Source: McKinsey & Company, Australia, March 2017“Meeting East Australia’s Gas Supply Challenge”

QUEENSLAND – World Class Gas Economics

7

Source: The Gas Price Trends Review Report by Oakley Greenwood Pty Ltd. Feb 2016.

* Prices shown, do not include transportation

• 1. NWQ INDUSTRIAL ZONE
• 2. GLADSTONE

INDUSTRIAL ZONE

• 3. SEQ INDUSTRIAL ZONE

US$8.29/MCF US$7.48/MCF US$7.38/MCF

2015 COMMERCIAL GAS PRICES

One commercial gas user has been quoted AUS $20/GJ for a two year contract starting July 1, 2017 (Australian Financial Review, Mar 8, 2017)

EXPECTED WELLHEAD ECONOMICS SPOT PRICING: AUS $10-12/Mcf WELLHEAD PRICING: AUS $7-10/Mcf NETBACK: AUS $4-8/Mcf(1) ATP 934 situated near intersection of major pipelines

(1) See "Fundamental Resource Definitions, Cautionary Statements“ and “Oil and Gas Advisories” in the Appendix and Notes to this document.

NATURAL GAS EXPLORATION

8

COOPER BASIN, RECENT PERMIAN GAS ACTIVITY

The basin hosts a range of gas play types within the Permian including basin-centred gas & tight gas accumulations. In South Australia, the Permian has produced over 7 Tcf of gas(2) from over 109 gas pools (since 1969). In contrast to Queensland where

• nly 1.6 Tcf of gas(2) has been

recovered from over 48 gas pools (since 1988). ATP 934 is located in Queensland where Permian gas appears to be underexploited and still has great potential for exploration

• pportunities.

Pre-Permian Basement Depth Map, Source: Geoscience Australia, 2015

ATP 934

South Australia and Queensland – similar geology but vastly different pace of development Barrolka Development 5 wells Queensland South Australia Mokami Discovery - 8.6 MMCF/d(1) Whanto Development 7 gas wells Silver Star Senex/Origin

100 kms

(1) Beach Energy Monthly Drilling Report, March 2017 (2) Cumulative gas production from PEPSA government database up to March 31, 2016 (3) See "Fundamental Resource Definitions, Cautionary Statements“ and “Oil and Gas Advisories” in the Appendix and Notes to this document.

9

10

PERMIAN - WORLD CLASS SOURCE ROCK

Source: Geoscience Australia, 2015, Source Rocks of the Cooper Basin

ATP 934

Total hydrocarbons generated : > 2 Trillion Barrels

Oil and Gas Maturity Ro (%)

TRANSFORMATIVE BASIN CENTERED GAS PLAY

11

• The last Whanto well was declared part of a “basin centered gas”

play.(1) Basin Centered Gas accumulations, are typically thick, continuous gas saturated reservoirs.

• The targeted Permian section extends across the Windorah

Trough and into ATP 934, contained within an average section of 75 to 100m(1).

• E. Australia gas market fundamentals very compelling with

upward pressure on price.

• Gas resources have high value in Australian market:
• (i.e. Strike Energy Limited, 2C Contingent Gas Resource of

155.4 Bcf and market cap of $81.99 million)(2)

Top Permian Depth Map

Recently drilled wells

(1) Based on Beach Energy Ltd. public disclosures. (2) Strike Energy Ltd. public disclosures, as of March 9, 2017 closing.

BARROLKA PERMIT (ATP 934)

15 km

12

Source: Geoscience Australia, 2015, Source Rocks of the Cooper Basin

PERMIAN PROFILE - ACROSS THE COOPER BASIN

WHANTO

B B B’ B’

WINDORAH TROUGH

Toolachee Patchawarra 75-100m thick(1) ATP 934

12

(1) See "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and End Notes to this document.

ATP 934 BARROLKA PERMIT (BNG 71% AND OPERATOR)(3)

Barrolka: 20.2 BCF(1) Durham Downs/ Durham Downs North: 46 BCF(1) Coolah Ramses

Coonaberry 6.4 BCF (1)

Wareena 7.7BCF(1) Ghina Tartulla 13.4BCF(1)

Whanto

• Large, undrilled 1,462 km2 permit in gas jurisdiction
• Active drilling around permit with 20 gas wells drilled in the last 2 years
• Producing gas fields offsetting with numerous gas pipelines crossing

the permit

• 5 exi sti ng gas poo

l s o ffse tti ng A TP 934 are p r oduci ng 17. 7 MM cf d with 396 bbls condensate per day(1)

• W han

t o w e ll s no w ti ed

• i n w ith an

ti c i pa t ed i n itia l ra t e o f ~ 28

• 30

MMcfd.

• Management has mapped 5 prospects/leads on this permit, based on

2D seismic interpretation - covering a total area of ~107 km2

• Surrounding analog Permian T
• olachee gas pools show an average

‘conventional’ pay zone thickness of approx. 9.6 m, (based on logs/tests/production data from 28 wells across a range of offsetting pools)(2)

13

(1) Production volumes cited are cum. to June 2016. Source: State of Queensland Department of Employment, Economic Development and Innovation (DEEDI). (2) See "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and End Notes to this document.

PERMIT NEIGHBOURING PRODUCING GAS FIELDS & GAS PIPELINES FEEDING EASTERN AUSTRALIA

Prospects Gas Pools

Barrolka East ~ 12 km2

Ghina ~ 11 km2 Ghina West ~ 6 km2 Ramses Prospect ~ 36 km2 Coonaberry Prospect ~42 km2 15km

Cum Prod to June 2016(1)

COONABERRY 1

200 GR 2680 2685 2690 2695 2700 2705 2710 2715 2720 2725 2730 2735 2740 2745 2750 2755 2760 2765 2770 2775 2780 2785 2790 2795 2800 2805 2810

14

PERMIAN STRATIGRAPHY & TYPE LOG

The Coonaberry pool directly

• ffsets Bengal’s ATP 934

permit. Coonaberry 1 was drilled by Santos in 1991 and was cased as a Toolachee gas discovery. An offset well at Coonaberry 2 was drilled in 2007 and gas production from this field started in the same year. Total field production to date is 6.4 Bcf from the Toolachee P2 sand (up to June 30, 2016).(2)

Basement

Toolachee

P2 Coal

Patchawarra

P2 Sand P3 Sand

12 m of net sand(3) NGTS, Rec. 0.4 Bbls mud GTS @ 7.9 MMcf/d(1) 9 m of net sand(3) 24 m of net sand(3) Coonaberry 1

(1) Well Completion Report, Queensland Government (2) Queensland Government data (3) See "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and End Notes to this document.

QUANTITATIVE INTERPRETATION (QI) REDUCES RISK IN THE COOPER BASIN

• Utilizing QI techniques & workflow that were developed for

identifying reservoir properties in the Deep Basin setting of Alberta

• Published documentation of a 92% accuracy predicting lithology

in a development program

• Current QI project is 80% complete as of April 30
• AVO Pre-stack Inversion
• Facies Analysis from dipole log data
• Reservoir Characterization from Rock Physics templating
• Risk is reduced by characterizing sandstones from shales and

coals, as conventional seismic data is dominated by the high reflectivity associated with of coals

15

Lambda-rho Mu-rho Crossplot showing separation of rock types

Coal Shale Sandstone

Dots defined by geologic tops

Dipole sonic logs from the Ramses and Karnak wells

QUANTITATIVE INTERPRETATION (QI) REDUCES RISK IN THE COOPER BASIN

16 Toolachee Basement?

High amplitudes are caused by coals BUT - where are the sands?

Density Log

Conventional Seismic

Basement

Coals Sands

Density Volume from AVO/Pre-stack Inversion

17

ATP934 SIGNIFICANT GAS RESOURCE OPPORTUNITY

Large, undrilled 1,462 km2 (361,268 acre) permit in gas jurisdiction Producing gas fields offsetting with numerous gas pipelines crossing the permit Active drilling around the permit with 20 gas wells drilled in the last 2 years Drill-ready locations identified on top three gas prospects (approx. $4MM per well, DC&C) Finalize seismic inversion work and operational plan, 3D seismic acquisition option available E. Australia gas market fundamentals very compelling with upward pressure on price APPROXIMATELY AUS $12 MM TO DE-RISK SIGNIFICANT GAS RESOURCE

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”.

LIGHT OIL DEVELOPMENT

18

• Barta permit approx. 2.5 MMbbls production to date with 2P
• il in place of 85 MMbbls(1) and expected to increase

substantially

• 52 degree API oil with oil price at significant premium to Brent
• Currently at 1,170 Bopd (355 Bopd Net), before connection of

new wells

• 5 well drill campaign 100% successful, including

exploration discovery at Shefu.

• 2P and 3P areas expected to expand materially
• Shefu-1 exploration success has de-risked an area of over

950 acres immediately offsetting the well

• Established oil column now greater than 51 meters
• 28 wells drilled to date – 27 oil (approx. 160 acre spacing)
• BNG management view:
• 21,000 acres of Murta closure within permit

Limit of existing 3D

GLJ 2P Areal Assignment (1)

• Mar. 31, 2016 (6,436 Acres)

GLJ 3P Areal Assignment

• Mar. 31, 2016 (9,937Acres) (1)

Lowest Known Oil (LKO) (21,350 Acres)

SHEFU-1 DISCOVERY

Existing Wells 2016 Wells

BARTA PERMIT

(~154,000 ACRES)

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”. See also "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and Notes to this document.

19

HISTORY OF DRILLING SUCCESS AND POOL EXPANSION

Cuisinier PL 303 (15,815 acres)

1 Km

CUISINIER - WESTERN EXPANSION

• Shefu-1 encountered a well developed Murta DC70

sand with 7m of net oil pay(1)

• Shefu-1 Murta oil discovery further expands upon

Cuisinier success further highlighting the prospective adjacent land position within the same permit

• Structures mapped on permit including LKO-based

Murta closures define prospects covering ~115 km2

• In addition, 5 individual Hutton prospects identified
• Barta West 3D acquisition commencing May 2017 -

while acquisition costs are near an all time low

20 20

IN ADDITION TO CONVERTING 3P RESERVES INTO 2P & 1P, THERE’S SIGNIFICANT EXPLORATION UPSIDE

Cuisinier PL 303

Shefu-1 Murta Oil Discovery MURTA DEPTH STRUCTURE MAP

(1) See "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and End Notes to this document.

Barta-1 well Good oil show Proposed 3D area ~250 km2 LKO

(viewed from NW)

TYPE WELL CURVE – AVERAGE PRODUCING VERTICAL WELL (w/o pressure maintenance)

CUISINIER DEVELOPMENT

IMMEDIATE GROWTH POTENTIAL

21

Cuisinier well economics

Breakeven US$ 31-35/bbl ($10-12 F&D + $21-23 Ops costs) NPV AUD$3.9 million (forward strip price) IRR / Payout 61% / 16 months Netback(1) AUD$34/bbl (@ current Brent price)

MANAGEMENT SEES SUBSTANTIAL UPSIDE BEYOND INDEPENDENT EVALUATOR’S VALUE UPSIDE

60 120 240 180 20 40 60 80 100 120 140 160 180 200

Calendar Day Oil Rate Bbls/day Cumulative oil production (Mbbl)

Calendar Daily Oil Rate (CDOR)

(1) See "Fundamental Resource Definitions, Cautionary Statements“ and “Oil and Gas Advisories” in the Appendix and Notes to this document. (2) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”.

ANNUAL PROVED PLUS PROBABLE(1) RESERVES

AS AT YEAR END MARCH 31(2)

20 40 60 80 100 120 140 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2013 2014 2015 2016

NPV10 (CAD $Millions) Mbbls

2P Volume 2P Value

2P Volumes: 54% 3yr. CAGR

22

BENGAL - CATALYSTS & OPPORTUNITIES

EXPLORATION AT ATP 934

• 1,462 km2 permit in gas rich jurisdiction
• Significant upside value due to Eastern Australia gas demands
• Possibility of basin centered gas play identified in neighboring

permits CUSINIER 2017 DRILLING PROGRAM

• 4 successful wells on stream in May 2017
• Shefu-1 exploration success unlocks future low risk development

ACQUISITION OPPORTUNITIES

• Increased deal flow involving Australia onshore conventional oil and

gas assets

• Potential for accretive producing asset acquisitions

OTHER EXPLORATION OPPORTUNITIES

• Barta-West 3D expanding beyond success of Shefu-1 exploration

well

• Tookoonooka – several oil and gas prospects currently being

evaluated WELL POSITIONED WITH SIGNIFICANT GROWTH OPPORTUNTIES IN THE NEAR AND LONGER TERM

BENGAL LEADERSHIP TEAM

23

Decades of experience operating internationally & domestically; track record of advancing projects from exploration to production Strong corporate governance with significant

• perational, financial, and capital markets expertise

Board of Directors

Ian Towers, P.Eng – Chairman

Former President, CEO & Director Dolomite Energy

Peter Gaffney, P.Eng, P.Geol

Founding partner Gaffney, Cline & Associates (international reservoir engineering firm)

James Howe, CA

Director, Ensign Energy Services, Pason Systems

Brian Moss, Ph.D. (Geol)

President and CEO of Crown Point Energy Inc.; Former Director & Exec VP (Lat Am) of Antrim Energy

Robert Steele, P.Eng

Former Director Raise Production Inc. (formerly Global Energy Services); Former Director Marquee Energy (formerly Skywest Energy); Founder of Stellarton Energy & Berens Energy

Bill Wheeler, CFA

President of Texada Capital Management; Co-founder, Leith Wheeler Investment Counsel; Former Director of Azabache Energy

Chayan Chakrabarty, PhD (Pet Eng), MBA

President, CEO & Director of Bengal Energy

Management

Chayan Chakrabarty, PhD (Pet Eng), MBA – President, CEO & Director

Formerly Daylight Resources, Verenex, Ross Smith Energy Group

Jerrad Blanchard, CA – CFO

Formerly CFO Winstar Resources Ltd. and Manager PricewaterhouseCoopers LLP.

Richard Edgar, P.Geol. - Executive VP

Formerly Avery Resources, Shelton Canada, Energy North Inc.

Gordon MacMahon, P.Geol. - VP, Exploration

Formerly Trident, APF Energy Trust, Canada Northwest Energy

DECADES OF EXPERIENCE OPERATING INTERNATIONALLY & DOMESTICALLY

WHY BENGAL

• Attractive exploration opportunity on large gas resource at ATP 934
• Very compelling gas market conditions with spot prices of $10-

$12/GJ

• Large, stable, well established light oil reserves base with history of

growth leading to vast development opportunity (only ~ 2.9% of 2P STOIP(1) produced to date)

• Successful drilling results including Shefu-1 plus Barta West 3D,

expanding the proven productive area at Cuisinier

• Maintaining healthy netbacks and cash flow despite downward

commodity price pressure

• Large acreage inventory with attractive high impact exploration
• pportunities without immediate time pressures

24

High margin, strong cash generating

• perations

Rapidly growing oil in place & reserves in a light oil pool

Continuing pool area expansion offers long running room

(1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”. See also "Fundamental Resource Definitions, Cautionary Statements and Oil and Gas Advisories" in the Appendix and Notes to this document.

LARGE POOL OF HIGH IMPACT EXPLORATION SUPPORTED BY GROWING RESERVE BASE

Rapidly growing oil in place & reserves in a light oil pool High impact, drill ready, gas opportunity in exciting gas market

APPENDIX

25

RAPID GROWTH OF LNG CAPACITY

New LNG capacity is forecast to be needed from the early to mid 2020’s.

26

Global LNG supply and demand balance to 2030,1 MTPA (1)

MTPA Source: McKinsey & Company Australia, March 2017 “Meeting East Australia’s Gas Supply Challenge” (1) Details for all reference notes on this slide are located at the end of this presentation under “Endnotes”.

SUPPLY – DEMAND, EAST AUSTRALIA

Existing and planned capacity is insufficient to fill all export capacity AND to meet domestic demand. In the near-term, with current export capacities, supply and demand are broadly in balance. By 2030, the difference between projected gas supply and full demand potential is projected to reach 465 PJ

27

East Australia projected supply demand dynamics, 2017–2030, PJ

Source: McKinsey & Company Australia, March 2017 “Meeting East Australia’s Gas Supply Challenge”

EASTERN AUSTRALIA GAS DEMAND SUMMARY

28

GAS DEMAND BCF/YR BCF/YR Local Demand 644 Trans 6 Contracted LNG 1,044 Mining 17 Additional LNG Capacity 294 Rec/Com 208 TOTAL 1,982 Ind 234 Power Gen 180 TOTAL 645 644 1,044 294

BCF/YR

Local demand Contracted LNG Additional LNG capacity

Source: McKinsey & Company Australia, March 2017 “Meeting East Australia’s Gas Supply Challenge”

SHEFU-1 EXPLORATION DISCOVERY

• Near field exploration well approx. 3.6

kms west of Cuisinier-17

• Encountered 8.1m of gross sand with 7m
• f net pay and virgin pressure
• Result has establish a new Lowest

Known Oil (“LKO”) for the area

• The Murta reservoir in the Shefu-1 area

is thicker than expected and situated well

• utside of Bengal’s currently booked

reserves areas

• Bengal’s internal review suggests that the

Shefu-1 result has the potential to materially increase the Cuisinier area oil in place and reserves(1)

29

Murta Depth Structure (viewed from NW)

Lowest Known Oil (LKO)

POOL SIZE AND RESERVES EXPECTED TO INCREASE FURTHER C17 Shefu-1

(1) See "Fundamental Resource Definitions and Cautionary Statements" in the Appendix and Notes to this document.

30

Slide 2 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled Reserves Assessment and Evaluation of Canadian and Australian Oil and Gas Properties dated May 3, 2016, prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook (the "COGEH") with Cuisinier 30.357% WI. (2) Corporate Operating Netback Q3 2017 of $69.01/bbl. Slide 3 (1) Corporate Operating Netback Q3 2017 of $69.01/bbl. Slide 4 (1) Petajoule is defined as an SI unit of energy, work, and heat equal to 1015 joules; PJs/y = Petajoules per year; 1 Petajoule = 163398.6928 Barrels Of Oil Equivalent (BOE) Slide 5 (1) Gigajoule (GJ) is defined as an SI unit of energy and work equal to one billion (109) joules. 6 GJ is about the amount of potential chemical energy in 160 L (approximately one US standard barrel) of oil, when combusted. Slide 13 (1) Billion Cubic Feet” or “Bcf” is a volume measurement used by the oil and gas industry. A billion cubic feet (1,000,000,000 cubic feet) is a volume measurement of natural gas. (2) Million Cubic Feet” or “MMcf” is a volume measurement used by the oil and gas industry. A million cubic feet (1,000,000 cubic feet) is a volume measurement of natural gas. (3) Australia Gas Ltd. – 29% W/I partner at ATP 934. .

ENDNOTES

Slide 19 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled “Reserves Assessment and Evaluation of Canadian and Australian Oil and Gas Properties” effective as off May 3, 2016, prepared in accordance with NI 51-101 and the COGEH with Cuisinier 30.357% WI. Slide 21 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled “Reserves Assessment and Evaluation of Canadian and Australian Oil and Gas Properties” effective as off May 3, 2016, prepared in accordance with NI 51-101 and the COGEH with Cuisinier 30.357% WI. Slide 24 (1) Based on independent, qualified reserves evaluator GLJ Petroleum Consultants Ltd.’s report dated March 31, 2016 entitled “Reserves Assessment and Evaluation of Canadian and Australian Oil and Gas Properties” effective as off May 3, 2016, prepared in accordance with NI 51-101 and the COGEH with Cuisinier 30.357% WI Slide 26 (1) Metric tonnes per annum, (MTPA) which is defined as a typical measurement unit in liquefied natural gas (LNG) markets for production and facility capacity.

FORWARD-LOOKING STATEMENTS

31

• Certain information regarding Bengal Energy Ltd (“Bengal” or the “Company”) set forth in this document contains forward-looking statements or financial outlooks (collectively, "forward-

looking statements") under applicable securities law. The use of any of the words “plan”, “expect”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate” or other similar words, or statements that certain events or conditions “may” or “will” occur are typically intended to identify forward-looking statements. Forward-looking statements are not based on historical facts, but rather on Bengal’s internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, regulatory hurdles, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions, not guarantees, and actual events or results may differ materially. In particular, forward-looking statements included in this document include, but are not limited to, statements with respect to: Bengal’s corporate strategy, growth strategy and future work programs; the Company’s well drilling programs; the timing to reach full production of the Company’s projects; the volume of annual exports of gas from Australia; the amount of investment required to maintain production in Australia; future seismic; the drilling, completion, performance of future wells; infrastructure development; the timing of the full field development plan on the Barta permit; the expansion of 2P and 3P areas

• n the Barta permit; the potential of the Shefu-1 results; performance of current wells; estimates of resources, reserves and ultimate recovery per well; demand for oil and natural gas in

Australia and globally; results of operations; future production, current production, including production targets from current and future wells and pool sizes; production decline rates; future production capacity; exploration opportunities of ATP 934; anticipated flow rates of Whanto wells; future acquisitions and exploration opportunities; future netbacks, royalties, operating and transportation costs and drilling and completion costs; and oil and gas prices. In addition, statements relating to “reserves” or “resources” are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably produced in the future.

• The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause actual results to vary, including but not limited to risks

associated with: the impact of general economic conditions in Canada, Australia and globally; industry conditions, including changes in laws and regulations, including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada and Australia; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; imprecision in reserve and resource estimates; the production and growth potential of Bengal’s assets; production, transportation and marketing constraints; failure to obtain required approvals of regulatory authorities, in Canada, Australia and India; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil and natural gas; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and natural gas industry; ability to access sufficient capital from internal and external sources; and other factors, many of which are beyond the control of the Company.

FORWARD-LOOKING STATEMENTS cont’d

32

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Bengal’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). With respect to forward-looking statements contained in this document, Bengal has made assumptions regarding: current and future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; access to capital to fund the Company’s exploration programs; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates; future operating and transportation costs; and

• ther matters. Although the forward-looking statements contained in this document are based upon assumptions which management believes to be reasonable, the Company cannot assure

investors that actual results will be consistent with these forward-looking statements. Management has included the above summary of assumptions and risks related to forward-looking statements provided in this document in order to provide shareholders with a more complete perspective on Bengal’s current and future operations and such information may not be appropriate for other purposes. Bengal’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance 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 there from. These forward-looking statements are made as of the date of this document and Bengal disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The estimates of capital requirements, reserves and net present value of future net revenues ("NPV") contained in such slides are based on information for the Company’s booked locations in respect of which reserves have been assigned as well as analogous public information. Readers are cautioned that there is no certainty that any development on Bengal's unbooked locations will be successful to the same extent as its booked locations, or at all, and therefore, the estimates of capital requirements, reserves and NPV should not be relied upon as necessarily indicative of future results or values. The information is also based on certain key assumptions including, without limitation, the assumptions set forth above under this "Forward-Looking Statements" advisory

• statement. Actual results and values may vary, with such variations being material, as a result of a number of risks and uncertainties, including, without limitation, the risks and uncertainties noted

under this "Forward-Looking Statements" advisory.

33

“Stock Tank Oil Originally-In-Place” or “STOIP” "Stock Tank Oil Originally-In-Place" or "STOIP" is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. All STOIP set forth in this document are based on management's internal estimates. “Trillion Cubic Feet” or “Tcf” is a volume measurement used by the oil and gas industry. A trillion cubic feet (1,000,000,000,000 cubic feet) is a volume measurement of natural gas. Pay Thickness - This document includes estimates of pay thickness, which are considered to be anticipated results or information that indicate the potential value or quantities of resources under NI 51‐101. Such estimates have been prepared by management of the Company and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. The risks associated with estimates of pay thickness include, but are not limited to, the risk that the Company's exploration and development drilling and related activities may provide different results; the risk that the Company may encounter unexpected drilling results the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas; delays in anticipated timing of drilling and completion of wells; geological technical, drilling and processing problems and other difficulties in producing petroleum reserves. "TCF of gas in place", STOIP, “Oil in Place”, pay thickness and other resource disclosures contained in this document are not indicative of reserves, nor are they categories of resources recognized by the Canadian Oil and Gas Evaluation Handbook. These volumes are based upon Bengal's internal estimates only and are not derived from an independent resources evaluation prepared pursuant to NI 51-101 and are not accompanied by a discussion of the significant positive and negative factors relevant to the estimated volumes, or the estimated total costs, timeline and technology applicable to achieving commercial production from the project. There may be more specific sub-categories

• f resources applicable to these estimates that would provide a more accurate description of the resources and the work programs, technology and capital required to exploit such resources, but these have not been prepared by the
• Company. In addition, these volumes represent "best" case estimates however "low" and "high" case estimates have not been prepared by the Company. There is no certainty that any portion of the noted volumes or resources

will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion thereof. The risks associated with these estimates and the other resource estimates contained in this document include, but are not limited to, the risk that Bengal's exploration and development drilling and related activities may provide different results; the risk that Bengal may encounter unexpected drilling results; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas; delays in anticipated timing of drilling and completion of wells; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and the risk that if any resources are discovered that it will not be commercially viable to produce any portion thereof. There is no certainty that Bengal will achieve the estimated results from the Cuisinier oil field or that any portion of the resources will be discovered. If discovered, there is also no certainty that it will be commercially viable to produce any portion of the resources.

FUNDAMENTAL RESOURCE DEFINITIONS AND CAUTIONARY STATEMENTS

CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES

34

• Certain oil and gas metrics: Finding and development costs, reserves replacement and netbacks do not have standardized meanings or standard methods of calculation and therefore such measures

may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in documents provided by Bengal to give readers additional measures to evaluate the Bengal's performance; however, such measures are not reliable indicators of the future performance of the Bengal and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon.

• Other than the reserves estimates disclosed on the slides 2, 19, 21 and 24, the recovery, reserves and resources estimates provided herein are internal estimates only. The reserve estimates

disclosed on slides 2, 19, 21 and 24 were prepared by GLJ Petroleum Consultants Ltd. with an effective date of March 31, 2016 in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and using GLJ Petroleum Consultants Ltd.'s forecast prices at March 31, 2016. There is no guarantee that the estimated reserves or resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

• Analogous Information: Certain noted drilling, completion, production, reserve and resource data provided in this document may constitute “analogous information” under applicable securities

legislation, such as reserve and resource estimates or the reserves and resources present on the Company’s lands, and near by lands, total production and production-rates from wells drilled by the Company or other industry participants located in geographical proximity to lands held by the Company. This information is derived from publicly available information sources (as at the date of this document) that the Company believes are predominantly independent in nature. The Company believes this information is relevant as it helps to define the reservoir characteristics in which the Company may have an interest. The Company is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor or in accordance with the Canadian Oil and Gas Evaluation Handbook and therefore, the reader is cautioned that the data relied upon by the Company 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.

• Certain other information contained in this presentation has been prepared by third-party sources, which information has not been independently audited or verified by the Company. No

representation or warranty, express or implied, is made by the Company as to the accuracy or completeness of the information contained in this document, and nothing contained in this presentation is, or shall be relied upon as, a promise or representation by the Company.

• Certain type curves referred to in this presentation represent estimates of the production decline and ultimate volumes expected to be recovered from wells over the life of the well. The type curves

disclosed herein are management-generated type curves based on a combination of historical performance of older wells and management's expectation of what might be achieved from future wells. The type curves represent what management thinks an average well will achieve. Individual wells may be higher or lower but over a larger number of wells management expects the average to come

• ut to the type curve. Over time type curves can and will change based on achieving more production history on older wells or more recent completion information on newer wells.

CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES cont’d

35

• Finding and Development Costs: Refers to the anticipated full exploration and development costs associated with each barrel of oil equivalent expected to be recovered from a well based on the

type curves and economics presented. F&D are calculated as the sum of development capital (plus the change in future development capital, where indicated) for the period divided by the change in reserves for the period. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year. F&D is utilized by Bengal as Bengal believes it is a metric that demonstrates its capital efficiency in adding reserves. Readers are cautioned that there is no standardized meaning or calculation for F&D and as a result, Bengal's reported F&D may not be comparable to F&D as reported by other industry participants. Additionally, F&D may not be a reliable indicator of the future performance of Bengal and future performance may not compare to the performance in previous periods.

• Barrels of Oil Equivalent: When converting natural gas to equivalent barrels of oil, Bengal uses the widely recognized standard of 6 thousand cubic feet (mcf) to one barrel of oil (boe). However, a

boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. MMboe means a million barrels of oil equivalent. MMbbls means a million barrels.

CAUTIONARY STATEMENTS AND OIL & GAS ADVISORIES cont’d

36

• IRR: Rate of return. IRR is the discount rate required to arrive at a NPV equal to zero. Rates of return set forth in this document are for illustrative purposes. There is no guarantee that such rates of return

will be achieved in the future.

• Netbacks: Netback is a term that is not defined under International Financial Reporting Standards and is used by Bengal as a supplemental measure in evaluating Bengal’s financial position and
• performance. Bengal calculates netbacks as revenues minus royalties and transportation and operation costs.
• Net Present Value (NPV): Estimates of the net present value of the future net revenue from Bengal's reserves do not represent the fair market value of Bengal's reserves and are based on information for

the Company’s booked locations in respect of which reserves have been assigned as well as analogous public information. The estimates of reserves and future net revenue from individual properties or wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation.

• Future Oriented Financial Information. This document, in particular the information contained in the slides entitled "Queensland – World Class Gas Economics", "Cuisinier Development" and "Realized

Crude Oil Price Scenarios" contains future oriented financial information (FOFI) within the meaning of applicable securities laws. The FOFI has been prepared by Bengal's management to provide an outlook

• f the Company's activities and results. The FOFI has been prepared based on a number of assumptions including the assumptions discussed under the heading "Forward-looking Statements" and

assumptions with respect to the costs and expenditures to be incurred by the Company, capital equipment and operating costs, foreign exchange rates, taxation rates for the Company, general and administrative expenses and the prices to be paid for the Company's production. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not

• bjectively determinable. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this document, and such

variation may be material. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading "Forward-looking Statements", it should not be relied on as necessarily indicative of future

• results. Except as required by applicable securities laws, Bengal undertakes no obligation to update such FOFI and forward-looking statements and information.
• This presentation is provided for informational purposes only as of May 11, 2017 is not complete, and may not contain certain material information about Bengal, including important disclosures and risk

factors associated with an investment in Bengal. This presentation does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it and does not constitute an offer to sell or a solicitation of an offer to buy any security in Canada, the United States or any other jurisdiction. The contents of this presentation have not been approved or disapproved by any securities commission or regulatory authority in Canada, the United States or any other jurisdiction, and Bengal expressly disclaims any duty on Bengal to make disclosure or any filings with any securities commission or regulatory authority, beyond that imposed by applicable laws.