Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Aug. 17, 2021 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") provides an update on operations and
reserves for licences 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 2021 Annual Report and
FY21 Results Presentation, both dated 16th August 2021.
Beach reports on the Western Flank, which includes ex PEL's 91,
106 and 107, and PRL 26 which are subject to the Company's GOR, as
well as for ex PEL's 92, 104/111, PEL's 113/115/516/90/93, PRL's
83, 135 and PPL 270 which are not.
Production
Beach report total Western Flank production for the year was 8.9
MMboe, a decrease of 7% from the prior year;
- Western Flank oil production was 6.7 MMboe, down 10% from
FY20.
- Western Flank gas and associated liquids production was 2.2
MMboe, up 3% from FY20.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
During FY21, Beach report Western Flank unit field operating
costs were less than AUD$6 per boe.
Beach drilled and operated a total of 21 Western Flank oil wells
during FY21, 11 of which were in the Bauer Field.
Reserves
Beach report Western Flank reserves and contingent resources as
at 30th June, 2021. Categories presented for reserves
are 1P reserves (Proved) and 2P reserves (Proved and Probable).
Reported reserves have been independently audited by RISC Advisory
in accordance with the definitions and guidelines contained within
the Petroleum Resources Management System (PRMS) as set out in SPE
Reserves Auditing Standards in Australia.
Beach report the following Western Flank 1P reserves at
30th June 2021:
- Oil – 10 MMboe (56% is attributable to the Company's GOR
licences)
- Gas – 5 MMboe (79% is attributable to the Company's GOR
licences)
Beach report the following Western Flank 2P reserves at
30th June 2021:
- Oil – 26 MMboe (60% is attributable to the Company's GOR
licences)
- Gas – 8 MMboe (82% is attributable to the Company's GOR
licences)
Despite the FY21 reserves downgrade (see Company news release
dated April 30th, 2021),
the four-year Western Flank 2P oil reserve replacement ratio is
125%.
FY22 Program
Beach report it has more than 100 prospects and leads across the
Western Flank oil and gas acreage.
As previously reported in a Company News Release dated
July 22nd, 2021, 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.
As reported by Beach, the first well in its drilling program
spudded early in their FY22.
Chu Chua Copper-Gold Project.
The Company was able to access the Chu Chua property during
early July 2021 just prior to the
extreme forest fire risk in Central
British Columbia in order to conduct a site visit and work
as part of the proposed update to the NI43-101 Technical Report.
The Company has been approached by several parties looking to enter
into joint venture and/or earn-in agreements on the project and
management will continue to evaluate all options to move the
project forward in the best interests of its shareholders.
"The prudent capital management plan and focus on maintaining
a strong balance sheet has allowed the Company to withstand the oil
price shock of 2019, and notwithstanding the Company reporting a
100% increase for the previous two dividend periods,
Newport maintains a healthy
balance sheet with no debt" stated Ian
Rozier, President and CEO.
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 $5.2
million in the treasury (comprised of cash, cash
equivalents, and short-term investments), and no debt.
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.