Bengal Energy Ltd. has commenced field operations with the goal of transforming the Company into an operated producer in Australia. These field operations, at Wareena and Caracal, have the potential to materially increase Company production levels, with Bengal estimating that, on successful completion of the operations, corporate production may increase to up to 550 - 700 boe/d. The Company believes that any increased production, coupled with recent spikes in benchmark Brent crude oil and Australia's East Coast natural gas prices, has the potential to significantly improve Bengal's cash generating capability and position the Company for continuous growth. At Wareena, the Company's 100% owned block, two wells (the "Wareena Wells") will be restarted with the goal of reducing or eliminating water production to promote gas production.

Cumulative historic natural gas production from the two wells was more than six billion cubic feet . Bengal plans to reactivate the associated pipelines to allow sales and export of natural gas via the Coonaberry compression station into the Santos QNT Pty Ltd. raw gas infrastructure, with natural gas transported to the Moomba processing facility. The Company anticipates that the Wareena Wells will be ready for extended production testing in April 2022, and, with success, the Company expects to start exporting natural gas via the recommissioned pipeline in late calendar Third Quarter 2022.

The Company will provide an update on expected rates after the initial testing phase. At Caracal, the Company's 100% owned location, the Company plans to reinstate and stimulate the Caracal 1 well with the goal of producing commercial volumes of light oil. On success, commercial oil production would then be lifted by Bengal's refurbished Lufkin Roadrunner pumping unit (which the Company anticipates will be onsite at Caracal in April 2022), then gravity separated in a tank and offloaded into road tankers.

Bengal recently signed an offtake agreement with the neighbouring Inland Oil Refinery in Eromanga. The tank farm is staged and sized for an expansion of the production site based on additional producing wells. Upon starting production, the Caracal production area is earmarked for further development of additional oil prospects.