Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Oct. 26, 2020
/CNW/ - Newport Exploration Ltd ("Newport" or "the Company")
is pleased to provide an update on production and drilling
activities on licenses 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, Quarter Report for
the period ended 30th September, 2020 ("Beach Quarter
Report").
In light of the recent turmoil in global oil markets as a result
of a drastic decline in demand caused by the effects of COVID-19,
the Company strongly advises shareholders to access the Beach
Quarter Report and previous Company News Releases that demonstrate
the position of Beach (the operator of the GOR licences) going
forward, which is in drastic contrast to many oil producers with
higher operating costs and punishing debt loads.
PRODUCTION
Highlights of the first quarter production from the Cooper Basin
and Western Flank reported by Beach were;
Beach report production from the Western Flank was 2.4MMboe,
down 6% on the prior quarter. (NOTE: Western Flank includes the
Company's GOR licences ex-PEL's 91, 106, and 107, as well as
licenses ex-PEL's 92, 104 and 111, over which the Company does not
have a GOR).
Gross average daily oil production from ex-PEL 91 was
18.8kbbl/day.
Beach report average realized price across all products was
AUD$51.8/boe, a 16% increase over the prior quarter.
The average realized price of oil was up 38% to
AUD$64.6/bbl.
A total of 9 new wells were brought on-line with 8
horizontal and 1 vertical producers.
At quarter-end Beach has 6 oil wells cased and completed (4
horizontal and 2 vertical) plus 3 ESP
projects scheduled to come on-line in Beach's Q2 FY2021.
These results follow Beach's successful drilling and development
results in the Bauer Field as reported in the Company News release
dated July 22nd, 2020.
Ex-PEL 91 continues to make a major contribution to Beach's
operated oil production.
DRILLING
Highlights of the first quarter drilling by Beach on ex-PEL 91
were;
Seven horizontal oil development wells were successfully drilled
on the Bauer Field. Bauer Wells 61,
62, 63, 64, 65 and 66 have been cased and suspended as future
producers. This represents a 100% success rate for oil exploration
wells.
One well, Bauer 67, is currently drilling ahead.
Completion of Bauer 63 marked the end of the 16 well horizontal
well campaign targeting the McKinlay Formation on the Western Flank
of the Cooper Basin.
Spudding of the first horizontal Birkhead oil well in the Bauer
Field took place prior to quarter –end.
GUIDANCE
With Beach's reported production and continued exploration
success (particularly on the Bauer Field on ex-PEL 91), Beach
continues to achieve reserve replacement and positive cash flow
during a period of high disruption for the energy sector.
Newport has no control over
operating decisions by Beach. Accordingly, this prevents the
Company from commenting on Beach's operating plans going forward.
As always, the Company continues to strongly recommend that
shareholders and potential investors access material information
relevant to the Company as released independently by Beach. This
recommendation is particularly relevant with regard to the current
uncertainty in the global oil markets.
The Company receives its gross overriding royalty from Beach,
which is not a reporting issuer in Canada, therefore 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.
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, 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.
(c) 2020 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.