Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, July 22, 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 Fourth Quarter
Activities Report dated 21 July
2021.
Realized Oil & Gas Prices
Beach report their average realized price across all products
was AUD$65.3/boe, a 3% increase over the prior quarter.
The average realized price of oil was AUD$99.7/bbl, up 10%
on the previous quarter.
The realized gas price increased 2% to AUD$7.6 per GJ.
Production
Highlights of the fourth quarter production from the Western
Flank in the Beach report are:
Production from the Western Flank was 1.8 MMboe, down 12% on the
prior quarter, with lower volumes across all products. (Note:
Western Flank includes the Company's GOR licences ex-PEL's 91,
106,107 and PRL 26, 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 the Western Flank was
13.9kbopd/day, down 18% on the previous quarter. The average
gross daily production rates from the Western Flank during Beach's
FY21 financial year was 18.5 kbopd.
Oil production was impacted by higher than expected pump
downtime across key fields and natural field decline.
Equipment and personnel movement to undertake well workovers was
impacted by COVID-19 related restrictions and poor
weather.
A total of two new wells were brought online during the quarter,
one of which is on artificial lift.
Stimulation of the three vertical wells was completed during the
quarter.
Western Flank gas and gas liquids production was 512 kboe, down
10% on the prior quarter, following planned maintenance work at the
Middleton gas processing
facility.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
FY22 Program
Beach has undertaken a thorough review of the Western Flank and
plans to recommence drilling operations on the Western Flank oil
and gas assets during its FY22. The program aims to help
reduce the current decline being experienced across Beach's Western
Flank oil fields and extend plateau production from Western Flank
gas fields.
The planned program comprises the drilling of seven wells,
including three oil wells and four gas wells. Oil exploration
is then planned subject to finalization of drilling targets.
The first well in Beach's drilling program is expected to spud
in late July 2021.
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 $5.3
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
August or early September 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.
© 2021 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.