Trading Symbol: (TSX-V: NWX)
VANCOUVER, BC, July 22, 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 ASX
Announcement, FY2020 Fourth Quarter Activities Report dated
22nd July, 2020.
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
Fourth Quarter Activities Report that demonstrates 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. In their Announcement dated July 22nd, 2020, Beach report that
they ended FY2020 with $50 million
net cash and with access to $500
million in liquidity.
PRODUCTION
Beach report Western Flank quarterly production was 2.6 MMboe,
unchanged on the prior quarter.
Beach report gross overage daily oil production from the Western
Flank was 23.9kbbl, down 4% 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).
Beach report that oil production from ex-PEL 91 decreased only
4% to 1,805 kboe. Ex-PEL 91 continues to make a major contribution
to Beach's operated oil production.
Another 8 new oil wells were brought online in the quarter,
comprising six horizontal producers and two vertical producers.
Beach report that six artificial lift projects were completed in
the quarter, with two additional projects completed subsequent to
quarter end.
An ESP (Electrical Submersible Pump) installation at Bauer North
2 was completed at 1200 bpd.
Bauer 51 and Bauer 55 were both brought on-line with an initial
rate of 800bopd. (As previously reported in a Company News Release
dated April 22nd, 2020,
Beach's longest McKinlay horizontal development well, Bauer-39,
averaged approximately 2,900bbl/d on ESP through March).
At the end of Beach's fourth quarter seven oil wells are
awaiting connection.
Beach report's Western Flank gas and gas liquids production was
568 kboe, up 16% on the prior quarter.
DRILLING
Highlights of the fourth quarter drilling by Beach on ex-PEL 91
were;
Seven horizontal oil development wells were successfully drilled
on the Bauer Field, including the Bauer 55 horizontal development
well which extended the Bauer North structure to the north.
Five appraisal wells were drilled across the Bauer North,
Congony, Kalladeina and Kalladeina North Fields. Two producers
were added;
- Kalladeina 11 extended the Kalladeina Field limit to the
south-east.
- Bauer North 5 was cased and suspended as a future Birkhead
formation producer.
GUIDANCE
As stated previously by the Company (News Releases dated
March 30th and
April 22nd, 2020), it is
material information for shareholders of Newport that Beach report that revenues from
their gas sales cover their group operating and stay-in-business
costs and that their reported break-even oil price is less than
US$0/bbl. Also reported in the same
Company News Releases, Beach report that their crude sells at a
material premium to Brent.
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.
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.
© 2020 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.