Bengal Energy Ltd. Secures Favorable Refinancing Deal with Texada Capital Management Ltd.

Bengal Energy Ltd. (TSX: BNG), an international junior oil and gas exploration and production company with assets in Australia, has announced a significant refinancing deal with Texada Capital Management Ltd. (Texada), a company controlled by W. B. (Bill) Wheeler. The agreement involves the refinancing of Bengal's joint venture payables loan (the "Joint Venture Loan") through a new loan agreement (the "Texada Loan") with Texada. The Joint Venture Loan had an outstanding principal balance of Australian $1.8 million as of February 28, 2025, with a term of 24 months, monthly payments of Australian $98,642, and an interest rate of 5.0% over the Westpac Bank Bill Swap Rate, compounded daily.

The Texada Loan, with a principal amount of Cdn$1.7 million, will be used to repay the Joint Venture Loan in full. The new loan has a maturity date of April 1, 2027, with interest-only payments until the date of maturity. The interest rate on the Texada Loan is 10% per annum, payable quarterly. The loan is secured by a security interest over all of Bengal's present and after acquired assets, except for shares in its wholly owned subsidiary, Bengal Energy (Australia) Pty Ltd. Bengal has the option to prepay the principal sum owing under the Texada Loan at any time, in whole or in part, without notice or penalty to Texada, provided that any such prepayment is in a minimum amount of Cdn$200,000. Texada has the right to accelerate repayment of the Texada Loan if Mr. Wheeler (directly or indirectly through one or more entities owned or controlled by Mr. Wheeler) ceases to own, in the aggregate, less than 51% of the issued and outstanding voting shares in the capital of the Corporation (on a basic basis).

Chayan Chakrabarty, President and Chief Executive Officer of Bengal Energy Ltd., commented on the refinancing deal, stating, "We are pleased to secure this refinancing with Texada as we believe it strengthens our financial position by reducing interest costs while maintaining financial flexibility for future growth. We believe this transaction reflects our proactive approach to managing capital efficiently and positions us well to deliver value to our shareholders."

The refinancing deal with Texada Capital Management Ltd. has several key implications for Bengal Energy Ltd. The new loan agreement reduces interest costs, improves cash flow management, and provides financial flexibility for future growth initiatives. By repaying the Joint Venture Loan in full with the Texada Loan, Bengal strengthens its financial position and reduces its debt obligations. The long-term financing provided by the Texada Loan allows Bengal to maintain financial flexibility for future growth initiatives without the immediate pressure of principal repayments.

In conclusion, the refinancing deal with Texada Capital Management Ltd. is a strategic move for Bengal Energy Ltd., enabling the company to optimize its capital structure, reduce interest costs, and maintain financial flexibility for future growth. This transaction reflects Bengal's proactive approach to managing capital efficiently and positions the company well to deliver value to its shareholders.