Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Feb. 17, 2021
/CNW/ - Newport Exploration Ltd ("Newport" or "the Company")
is pleased to provide additional Guidance as provided by Beach
Energy Ltd ("Beach") for future production targets, expenditures
and Life of Assets on the Western Flank of the Cooper Basin,
Australia. (Note: Western Flank
includes the Company's GOR licences ex-PEL's 91, 106, 107 and PRL
26, as well as ex-PEL's 92, 104 and 111, over which the Company
does not have a GOR).
Slightly lower oil production from the Western Flank was
reported in a Company News Release dated January 28th, 2021. The Company
anticipates that this will be offset by higher oil prices in the
current quarter.
In a News Release dated January
28th, 2021, the Company made reference to Beach's
FY21 Second Quarter Activities Report (the "Report") for the period
ended 31st December, 2020. Highlights of the Report
were:
- A total of eight new wells were brought online during that
quarter, with seven horizontal producers and one vertical
producer.
- Beach reported that four vertical oil producers were to be
brought online in their Q3 FY21.
- Beach reported that a further four horizontal wells were also
to be brought online in their Q3 FY21.
In their Half Year Results reported on February 15th, 2021, and in their
Management Call, Beach provided further guidance relevant to the
Company's GOR Licences. Highlights are:
- Beach report that well interference from McKinlay drilling on
the existing Namur and McKinlay
producers has resulted in faster than estimated decline rates.
Beach have not made any adjustments to reserves as a result of
this.
- The eight wells referenced in the Report are soon to be
connected.
- Beach have a further six horizontal wells planned for H2 FY21
in the Bauer Field.
- Forecast Capital Expenditure for the Western Flank is
AUD$800M-AUD$1B
- Beach are targeting production of 20,000 boed and are currently
at 18,000boed.
- Beach plan to maintain production rates at between 15 and
20kboed.
- Beach estimate that Life of Assets on the Western Flank is
greater than 15 years.
"With Beach continuing to replace reserves, bringing several
new wells online, their targeted production volumes, budgeted
expenditures and particularly their estimated Life of Assets, all
provide very positive guidance for Newport and our shareholders.", stated
Ian Rozier President and CEO of
Newport.
Newport has no control over
operating decisions by Beach. The Company recommends that
shareholders and potential investors access material information
relevant to the Company as released independently by Beach and
Santos Ltd ("Santos") in order to keep current during exploration,
development and potential production of all the licences subject to
the Company's GOR. Beach's results and performance are also subject
to regular research reports by J.P. Morgan (Asia Pacific Equity
Research) and by RBC Capital Markets.
About Newport
Newport holds a 2.5% GOR on
several oil and gas licences and permits in the Cooper Basin in
Australia. These permits are
currently being operated and explored by Beach and Santos, both
major Australian oil and gas producers. The Company receives its
GOR 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.
The Company currently has 105,579,874 common shares issued and
outstanding.
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.
© 2020 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.