Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Oct. 21,
2022 /CNW/ - Newport Exploration Ltd ("Newport" or
"the Company") provides an update for licences in the Cooper Basin,
Australia, over which the Company
has a 2.5% gross overriding royalty ("GOR"). This information
was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its FY23
First Quarter Activities Report dated 19
October 2022.
Production
Highlights of the first quarter production from the Western
Flank in the Beach report are as follows:
Production from the Western Flank was 1.0 MMboe, down 10% on the
prior quarter (Note: Western Flank includes the Company's GOR
licences ex PEL's 91, 106, 107 and PRL 26, as well as licences ex
PEL's 92, 104 and 111, over which the Company does not have a
GOR).
Western Flank oil production was 676 kbbl, down 10% on the prior
quarter, and gas and gas liquids production of 229 kboe was 11%
below the prior quarter.
Flooding of the Cooper Creek
and weather-related downtime delayed the connection and workover of
wells. However, Beach note that despite the delays experienced
during the quarter, it maintains its target for flat oil production
in its FY23.
At quarter-end, Beach had 11 oil wells awaiting connection,
including three exploration wells, three horizontal development
wells and five appraisal wells.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Realized Gas & Oil
Prices
The average realized gas price was AUD$8.5 per GJ, a 3% decrease
on the prior quarter.
The average realized price of oil was AUD$157.1/bbl, a 6%
decrease over the prior quarter.
Beach report their average realized price across all products
was AUD$76.1/boe, an 11% decrease over the prior quarter.
Q1 FY23 Drilling
Activities
Two vertical oil exploration wells were drilled in ex PEL 91
targeting the Birkhead reservoir. The first wells, Knapmans
1, was plugged and abandoned. The second well, Rocky 1,
intersected approximately three metres of net oil pay and was cased
and suspended as a future producer and will be fracture
stimulated, completed and connected. The results from the
Rocky 1 well indicate oil migration west of existing commercial
fields and will help guide the Birkhead exploration campaign
planned for Beach's FY24.
A two-well horizontal fracture stimulated oil pilot project in
the Stunsail and Kangaroo fields (ex PEL 91) progressed during the
quarter with completion of drilling of the second well, Kangaroo
3. The well drilled a 3,647 metre lateral section and was
cased and suspended as a future producer. Fracture
stimulation of Stunsail 8 and Kangaroo 3 will be undertaken in
Beach's Q2 FY23.
"Despite being a difficult operating period for Beach, we are
pleased with their continued commitment to drilling, which has been
very successful. With eleven wells awaiting connection, and with
the indicated expansion of existing commercial oil fields on ex PEL
91, we remain very optimistic about future production
from our GOR licenses", stated Ian
Rozier, President & CEO of Newport.
About Newport
The Company receives its GOR from Beach which is not a reporting
issuer in Canada. Therefore,
Newport is not able to confirm if
disclosure satisfies the requirements of Canadian Securities
legislation.
Newport has no control over
operating decisions made by Beach and is not privy to exploration
or production data derived by Beach during operations. Accordingly,
this prevents the Company from commenting on operating plans going
forward.
As always, the Company recommends that shareholders and
potential investors access material information relevant to the
Company as released independently by Beach and Santos Ltd in order
to keep current during exploration, development and production of
all the licenses subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and
outstanding and approximately $3.7
million in the treasury (comprised of cash, cash equivalents
and short-term investments) and no debt.
Details of the next GOR payment will be reported at the end of
November or early December 2022.
info@newport-exploration.com
www.newport-exploration.com
www.beachenergy.com.au
www.santos.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the accuracy or
adequacy of this news release.
Cautionary Statement on Forward-Looking Information
This news release is intended to provide readers with a
reasonable basis for assessing the future performance of the
Company. The words "believe", "should", "could", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements may pertain to assumptions regarding
Beach's drilling plans, future dividends, the price of oil and
fluctuations in currency markets (specifically the Australian
dollar). Forward-looking statements are based upon a number of
estimates and assumptions that, which are considered reasonable by
the Company, are inherently subject to business, economic and
competitive uncertainties and contingencies. Factors include, but
are not limited to, the risk of fluctuations in the assumed prices
of oil, the risk of changes in government legislation including the
risk of obtaining necessary licences and permits, taxation,
controls, regulations and political or economic developments in
Canada, Australia or other countries in which the
Company carries or may carry on business in the future, risks
associated with developmental activities, the speculative nature of
exploration and development, and assumed quantities or grades of
reserves. Readers are cautioned that forward-looking statements are
not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those acknowledged
in such statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.