Bengal Energy Announces Fiscal 2026 Fourth Quarter Results

Calgary, Alberta--(Newsfile Corp. - June 18, 2026) - Bengal Energy Ltd. (TSX: BNG) ("Bengal" or the "Company") today announces its financial and operating results for the year end and fourth quarter of fiscal 2026 ended March 31, 2026. FOURTH-QUARTER FISCAL 2026 HIGHLIGHTS: The following is an overview of the financial and operational results during the three and twelve months ending March 31, 2026. All amounts are in Canadian funds unless otherwise noted: Reserves: Bengal's independently evaluated working interest share Proved Plus Probable ("2P") Reserves for the fiscal year ended March 31, 2026, Bengal's Working Interest share, are 1,799 thousand barrels of oil ("Mbbls") compared to 1,817 Mbbls at March 31, 2025. 1P Reserves are 839 Mbbls compared to 845 Mbbls at March 31, 2025.

The Company is committed to future drilling activities at the Cuisinier field subject to a field development plan being prepared by the Joint Venture ("JV") Operator to ensure commercial viability for all JV parties. Any future activity will be subject to the completion of a field development plan incorporating the results of Cuisinier water-injection program and equity or debt financing. The remaining future development capital is subject to both internal approval and availability of capital.

The net present value (NPV0F 10, before tax) of Bengal's 2P Reserves, net of future development costs, at March 31, 2026 is $42.2 million, or $0.09 per share compared to $42.6 million or $0.09 per share at March 31, 2025. Financial summary: Sales revenue - Crude oil sales revenue was $1.6 million in the fourth quarter of fiscal 2026, 66% higher than $1.0 million in Q4 fiscal 2025. Realized oil prices were US$96.73 per barrel ("bbl") during Q4 F2026, 20% higher than US$79.95/bbl during Q4 fiscal 2025.

In addition, the significant increase in quarter end benchmark crude prices used to value pipeline oil materially increased realized prices during the quarter. Refer to the Revenue/Pricing section below for a detailed reconciliation of pipeline oil. Production was 112 barrels of oil per day ("bopd") in Q4 fiscal 2026, 11% lower than 126 bopd in Q4 fiscal 2025.

Funds from operations 1 - Funds from operations were $468 thousand during the fourth quarter of fiscal 2026 compared to funds used in operations of $502 thousand in Q4 fiscal 2025. The increase was mainly due to higher sales revenues of $1.6 million in the fourth quarter of fiscal 2026 compared to $1.0 million in the fourth quarter of fiscal 2025 and lower operating expense of $0.2 million between the two periods. Net loss - Bengal reported a net loss of $1.7 million in the fourth quarter of fiscal 2026 compared to net loss of $3.0 million in the fourth quarter of fiscal 2025, attributed to $0.6 million higher revenues offset by impairment on exploration and evaluation asset recognized in the current fiscal quarter.

Operational summary: Production volumes - The Company's share of total Cuisinier production in the current quarter was 10,115 bbls (112 bopd), a decrease of 11% compared to production of 11,323 bbls (126 bopd) in the fourth quarter of fiscal 2025. Production from four wells which were the subject of workovers were fully on stream during the quarter, however production volumes from these wells have not yet resumed to pre-workover volumes. The Company has requested information from the operator to explain production results and the allocation of production between the joint venture partners.

OPERATING SUMMARY Bengal has filed its consolidated financial statements and management's discussion and analysis for the year end March 31, 2026, with the Canadian securities regulators. The documents are available on SEDAR+ at www.sedarplus.ca or by visiting Bengal's website at www.bengalenergy.ca.   (1) Non-IFRS and Other Financial Measures. Business development From time to time, Bengal has been in discussions regarding potential farm-out opportunities surrounding its exploration and development portfolio, as well as other corporate initiatives including acquisitions and divestitures aimed at increasing shareholder value.

With oil prices under pressure and junior equity markets virtually closed for oil and gas companies, Bengal has been unable to advance these initiatives to date. 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 (used in) operations Management utilized funds from (used in) 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 (used in) operations is calculated by adding back all non-cash expense deductions to the net loss for the period ended. The following table reconciles cash from operating activities to funds from 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 boe 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 of production.   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 CAUTIONARY STATEMENTS: 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", "future", "prospective", "project", "intend", "believe", "should", "would," "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 and Australia 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. 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; the failure to satisfy the conditions under farm-in and joint venture agreements; the failure to secure required equipment and personnel; changes in general global economic conditions including, without limitations, the economic conditions in North America and Australia; 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.

Readers are encouraged to review the material risks discussed in Bengal's annual information form for the year ended March 31, 2025, under the heading "Risk Factors" and in Bengal's management's discussion and analysis for the Q4 of the fiscal year ending March 31, 2026, 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 required pursuant to applicable securities laws.

Selected Definitions The following terms used in this news release have the meanings set forth below: bbl. - barrel bbls - barrels bbls/d - barrels per day $/bbl - dollars per barrel Q1 - three months ended June 30 Q2 - three months ended September 30 Q3 - three months ended December 31 Q4 - three months ended March 31 Non-IFRS Measurements Within this news release, references are made to terms commonly used in the oil and gas industry. Funds from (used in) operations, funds from (used in) operations per share, operating netback, netback per bbl, adjusted net income (loss) and adjusted net income (loss) per share do not have any standardized meaning under IFRS and previous GAAP and are referred to as non-IFRS measures. Funds from (used in) operations per share are calculated based on the weighted average number of common shares outstanding consistent with the calculation of net income (loss) per share.

Operating netback includes realized losses on financial instruments. Netback per bbl is calculated by dividing revenue (including realized loss on financial instruments) less royalties, and operating expenses by the total production of the Company measured in bbl. Adjusted net income (loss) and adjusted net income (loss) per share are calculated based on Net income (loss) plus unrealized loss (gain) on financial instruments less unrealized foreign exchange loss (gain) and non-cash impairment of non-current assets.

The Company's calculation of the non-IFRS measures included herein may differ from the calculation of similar measures by other issuers. Therefore, the Company's non-IFRS measures may not be comparable to other similar measures used by other issuers. Funds from operations is not intended to represent operating profit for the period nor should it be viewed as an alternative to operating profit, net income, cash flow from operations or other measures of financial performance calculated in accordance with IFRS.

Non-IFRS measures should only be used with the Company's annual audited and interim financial statements. A reconciliation of these measures can be found in the tables on pages 13 of Bengal's management's discussion and analysis for the fiscal year ending March 31, 2026. Disclosure of Oil and Gas Information This document discloses test results which are not necessarily indicative of long-term performance or of ultimate recovery.

FOR FURTHER INFORMATION PLEASE CONTACT: Bengal Energy Ltd. Chayan Chakrabarty, President & Chief Executive Officer Jerrad Blanchard, Chief Financial Officer (403) 205-2526 Email: investor.relations@bengalenergy.ca Website: www.bengalenergy.ca 1  See "Non-IFRS and Other Financial Measures" on page 12 of the December 31, 2025 MD&A. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301991 Newsfile Corp. June 17, 2026 - 9:38 PM PDT News by QuoteMedia www.quotemedia.com