Trading Symbol: NWX (TSX-V)
VANCOUVER, May 1, 2019 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to provide an update on
production and drilling activities on permits and licences in the
Cooper Basin, Australia over which
the Company has a 2.5% gross overriding royalty ("GOR"). This
information was released by Beach Energy Ltd ("Beach") (ASX: BPT)
in their Quarterly Report for the period ended 31 March 2019, dated 30th April 2019, and in a news release dated
1st May 2019.
PRODUCTION
Beach report that ex PEL 91 oil production increased by 12% to
1,089 kboe. An artificial lift was added at producing well Bauer-30
which increased production from ~300 bopd on free flow to 1,995
bopd on pump. A milestone was also reached with the production of
the 20 millionth barrel of oil from the Bauer Field.
Beach report that Western Flank gas and gas liquids production
was down 23% to 394 kboe due to a combination of planned
maintenance work on CO2 trains at the Moomba gas plant and downtime
for expansion of liquids handling capacity at the Middleton facility. The upgrade is in
recognition of the high liquids content of Beach's western flank
gas and will allow the Middleton
facility to peak at 40 MMscfd of raw gas.
Beach report a 14% increase in realized oil price and a 6%
increase in realized gas/ethane price for the quarter.
DRILLING
Beach completed a six-well campaign in the Hanson Field (ex PEL
91) which comprised four vertical oil development wells and two
vertical oil appraisal wells. Both appraisal wells were cased
and suspended as future producers and confirmed the extension to
the south of the field where Hanson-7 development well was
drilled. Three of the four development wells were cased and
suspended as future producers, with two brought on line during the
quarter. The Hanson-7 well was a standout, brought on line
just 19 days after spud and averaging over 1,600 bopd free flow
over its first 30 days of production. Beach expect it to be
put on artificial lift in its Q4 FY2019.
Beach's second Western Flank operated rig commenced a seven-well
gas drilling campaign with success at appraisal well Lowry-3, which
was cased and suspended as a future producer. The well is
currently scheduled to be on line late in Beach's Q4 FY2019 and
provides increased offtake form the higher liquids content Lowry
gas.
BAUER FIELD DEVELOPMENT
Beach has increased the application of horizontal well
technologies, targeting the McKinlay and Birkhead reservoirs, with
three horizontal wells drilled in Beach's FY2018 and five operated
horizontal wells drilled in FY2019. Beach report that
horizontal wells drilled in FY2019 show an 8.2x average well
productivity improvement over vertical wells for 1.5x the cost.
Beach forecast aggregate 30-day initial production rate of
~7,000 bopd from horizontal wells Bauer-29, -30, -31 and -32.
As detailed in the Beach news release of May 1st 2019, improvements in
drilling/connection times means oil production is accelerated.
Positive appraisal results at Bauer and Hanson mean that both
fields will be subject to additional appraisal drilling.
Beach's Western Flank Bauer strategy is shown on page 16 of the
news release dated May 1st
2019.
WESTERN FLANK GAS (EX PEL 106 AND EX PEL 91)
Following the drilling success at Lowry-3, a seven-well gas
appraisal campaign in the core production area commenced in March
2019. The Core Development Area and Appraisal Area on ex PEL
106 and ex PEL 91 are shown on page 17 of Beach's news release
dated May 1st 2019.
GUIDANCE
Reference should be made to the Beach and Santos Ltd. websites
for their interpretation of the results and plans to bring wells
into production.
The Company receives its GOR from Beach, who is not a reporting
issuer in Canada, and therefore,
not required to comply with the requirements of NI 51-101
- Standards of Disclosure for Oil and Gas
Activities hence, Newport
is not able to confirm if the disclosure satisfies the requirements
of NI 51-101 - Standards of Disclosure for Oil and Gas
Activities, or other requirements of Canadian securities
legislation.
The Company is unable to forecast potential productivity for each
well and continues to strongly encourage shareholders and potential
investors to access information released independently by Beach and
Santos to keep current during exploration, development and
production guidance for all permits subject to the Company's gross
overriding royalty.
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 are statements and information regarding
possible developments that are based on assumptions about future
economic conditions and courses of action. Forward looking
statements in this release include, but are not limited to,
statements regarding future plans for wells to be brought online,
production rates and costs, and Middleton facility processing. Forward-looking
statements are based upon a number of estimates and assumptions
that, while 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.
© 2019 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.