Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, April 30, 2021 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") provides an update on guidance for
licences in the Cooper Basin, Australia, over which the Company has a 2.5%
gross overriding royalty ("GOR"). This guidance was reported
by Beach Energy Ltd ("Beach") (ASX:BPT) in its FY21 Second Quarter
Report and Business Report for the period ended April 30, 2021, in an announcement dated
April 30, 2021.
Reserve Update
Beach report that a review of 2P reserves across the Western
Flank oil and gas fields, including the Bauer oil field on ex-PEL
91, was undertaken following recent declines in oil production.
This review has resulted in a net downgrade to 2P reserves across
their Western Flank assets. (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).
With respect to the GOR licences;
- oil reserves in the Bauer oil field in ex-PEL 91 have been
downgraded by 6.0 MMboe
- oil reserves in four other fields in ex-PEL 91 have been
downgraded by 8.2 MMboe
- reserves in ex-PEL 106 gas fields have been downgraded by 7.2
MMboe
Production Update
Beach have not provided a specific production update for the GOR
licences. However, Beach forecast FY21 production of 8.6MMboe for
the Western Flank assets. Beach estimate that FY22 Western Flank
oil production is expected to be 4.0-5.0 MMbbls below their
previous estimates.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Drilling Update
Drilling of the FY21 wells was completed in March 2021 and they are being progressively
connected and completed on pump. This activity will continue into
Beach's FY22.
The FY22 drilling program will focus on;
- infill drilling within existing oil fields
- exploration of Namur
targets
- exploration of over 100 targets and leads already identified
and prioritized
Guidance
Beach updated their FY21 Guidance with their Half Year results
on February 15th, 2021,
and this was summarized in a Company News Release dated
February 17th, 2021. Beach
report that since the FY21 Half Year Results, additional production
data from Bauer oil wells drilled throughout the FY21 drilling
campaign confirmed production decline. In addition, Beach report
that recent results from oil wells drilled outside of the Bauer oil
field, including the Balgowan, Chiton, Hanson and Kalladeina fields
have "come in at the low end of expectation".
Beach report that as a result of continuing variability to the
business, which include adjustments because of the Covid-19
pandemic, and reductions in Western Flank oil and gas production,
it has withdrawn, and will no longer provide, a five-year
outlook in its current form.
"Obviously we are pleased with the recent increase in the oil
price and this should offset the effects on the GOR of a possible
decrease in production for the current quarter, but the downgrading
of reserves is disappointing for the long term." stated
Ian Rozier, President and CEO of the
Company.
Because of the time-zone difference, disclosure of information
contained in this news release and as provided by Beach was
available in Australia on
Thursday April 29, 2021 after market
hours in Canada. Because of the
uncertainty in being able to disseminate this news release in a
timely manner on Friday April 30,
2021 the Company took advice from its legal counsel and
asked for trading in the Company's shares to be halted pending
dissemination such that shareholders and potential investors
unaware of the Beach ASX announcement made late on Thursday April 29, 2021 PST, would not be
disadvantaged.
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 $5.8
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
May or early June 2021.
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.
SOURCE Newport Exploration Ltd.