Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Jan. 26, 2022 /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 Second Quarter
Activities Report dated 25 January
2022.
Production
Highlights of the second quarter production from the Western
Flank in the Beach report are as follows:
Production from the Western Flank was 1.3 MMboe, down 18% on the
prior quarter, with lower oil, 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 0.9 MMboe, down 13% on the
prior quarter due to natural field decline.
Higher than anticipated production rates and the connections of
five development wells in the second and third quarter (three wells
in ex PEL 91 which Beach expect to connect in its Q3), are
anticipated to further reduce decline rates in Beach's second half
of fiscal 2022.
Western Flank gas and gas liquids production was 415 kboe, down
28% on the prior quarter, primarily due to planned maintenance work
at the Middleton gas processing
facility, followed by reduced production at Middleton due to an unplanned outage at
Beach's Lowry well pad.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Realized Oil & Gas Prices
The average realized price of oil was AUD$117.1/bbl, up 6%
on the prior quarter.
This realized oil price is for Beach's quarter ended
December 31st, 2021.
Newport's second quarter ends
January 31st, 2022 and
therefore, based on the continued increase in oil prices through
January, 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 second quarter GOR payment.
The realized gas price was AUD$7.6 per GJ, a 2% increase on the
prior quarter.
Beach report their average realized price across all products
was AUD$72.6/boe, an 8% increase over the prior quarter.
Q2 FY22 Drilling Activities
On ex PEL 91, Beach completed two horizontal oil wells (Balgowan
7 & Kalladeina 15) that were cased and suspended as future
producers, with a third horizontal well (Kalladeina 16) drilling
ahead at quarter end.
Beach report that drilling results were in-line with
expectations, and they plan for all three horizontal oil
development wells in ex PEL91 to be brought online in its Q3
2022.
Gas exploration well Lowry Southwest 1 and sidetrack DW1 were
plugged and abandoned during the quarter.
Beach anticipate drilling of up to 11 oil exploration wells
throughout the Western Flank, with additional wells planned after
an assessment of the results.
"We are pleased with Beach's recent drilling success on our
GOR licences, and with the three horizontal wells to be brought on
line in Beach's Q3 2022; this should increase reserves and reduce
previously anticipated field decline rates", 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 $4.0
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
February or early March 2022.
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.