Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Oct. 21, 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 FY22
First Quarter Activities Report dated 20
October 2021.
Realized Oil & Gas Prices
The average realized price of oil was AUD$110.3/bbl, up 11%
on the previous quarter. This realized oil price is for
Beach's quarter ended September
30th, 2021. Newport's first quarter ends October 31st, 2021 and therefore,
based on the continued increase in oil prices through October, as
well as the premium paid to Beach for Brent oil produced from the
Western Flank, the Company anticipates a higher realized oil price
for its first quarter GOR payment.
The realized gas price decreased 2% to AUD$7.5 per GJ, a 5%
increase on the prior corresponding period.
Beach report their average realized price across all products
was AUD$67.3/boe, a 3% increase over the prior quarter.
Production
Highlights of the first quarter production from the Western
Flank in the Beach report are as follows.
Production from the Western Flank was 1.6 MMboe, down 10% on the
prior quarter, with lower volumes offset by higher gas and
associated liquids production. (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). Western Flank oil production was 1.0 MMboe, down
18% on the prior quarter due to natural field decline, with no new
wells tied-in during the quarter.
Higher than anticipated production rates and development
activity during the second quarter of FY22 are expected to further
reduce declines during the second half of its financial
year.
Western Flank gas and gas liquids production was 574 kboe, up
12% 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 Drilling Activities
Beach commenced the FY22 oil drilling program with the Kangaroo
2 appraisal well drilled in ex PEL 91 to appraise the Birkhead
reservoir of the Kangaroo field. The well intersected the
oil-bearing Birkhead reservoir and was completed as a future water
injector to support oil recovery from the field.
The FY22 gas exploration drilling program commenced in ex PEL
106 in late August 2021. Three wells
were drilled by the end of the first quarter, yielding two
discoveries at Rosebay 1 and Lowry South 1. Both discoveries will
be completed as producers and tied-in to the Middleton gas processing facility in mid-FY22.
The final well in the gas exploration campaign, Lowry Southwest 1,
was drilling ahead at the end of the quarter.
A total of three horizontal development wells will be drilled in
ex PEL 91 in the McKinlay reservoir of the Balgowan and Kalladeina
fields. Beach anticipate drilling of up to 15 oil exploration wells
in various licences throughout the Western Flank.
"Beach's previously announced anticipated field decline rates
were based on existing reserves at that time with no consideration
for new wells to replace oil reserves, so we are pleased with their
recent success in oil and gas drilling on our GOR licences as well
as their proposed drilling activities on ex PEL
91", stated Ian Rozier,
President & CEO of Newport.
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 $4.8
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
November or early December 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.