Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, April 27,
2022 /CNW/ - Newport Exploration Ltd ("Newport"
or "the Company") provides an update 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 FY22 Third Quarter Activities Report dated 26 April 2022.
Production
Highlights of the third quarter production from the Western
Flank in the Beach report are as follows:
Production from the Western Flank was 1.2 MMboe, down 7% on the
prior quarter, with lower oil and condensate production, offset by
an increase in gas and LPG 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).
Production and activities were impacted in late January due to
heavy rain across the Cooper Basin. Drilling and workover
rigs were demobilized and development activities ceased during
February. Full operations have since recommenced with the
workover rig's schedule increased to recoup lost time.
Western Flank oil production was 782 kbbl, down 12% on the prior
quarter due to natural field decline and deferment of workover
opportunities and well connections caused by rain delays in
February. Beach state production is expected to increase in its Q4
FY22 as workover activities are accelerated and new development
wells are progressively brought online.
Western Flank gas and gas liquids production was 427 kboe, up 3%
on the prior quarter, primarily due to Beach's Q2 FY22 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. Beach's Q3 FY22 gas and gas
liquids production was impacted by natural field decline and
unplanned maintenance in the Middleton field.
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$176.5/bbl, up 51%
on the prior quarter.
The realized gas price was AUD$8.4 per GJ, a 10% increase on the
prior quarter.
Beach report their average realized price across all products
was AUD$87.7/boe, a 21% increase over the prior quarter.
Q3 FY22 Drilling
Activities
Development
On ex PEL 91, Beach completed the final well of the five-well
horizontal campaign, Kalladeina 16. All wells drilled in this
campaign were successfully cased and suspended for
production. At quarter-end, two horizontal wells had been
brought online with the remaining three wells to come online in
Beach's Q4 FY22.
Exploration
Beach commenced an 11-well Namur/McKinlay oil exploration campaign.
Two wells were drilled on ex PEL 91, Morialta 1 and Magic Beach
1. Morialta 1 was plugged and abandoned subsequent to quarter
end. Magic Beach 1, intersected 2.7 metres of net oil pay in
the Namur Reservoir. Beach note that the results indicate
potential for oil migration to the northeast of previously
discovered fields. Further analysis, including reprocessing
of seismic data, will be undertaken by Beach to assess if a
structurally up-dip location exists for follow-up drilling.
"We are pleased with Beach's recent drilling success on our
GOR licences, and with the three horizontal wells brought on line
in Beach's Q3 2022 and the two remaining wells being brought online
in their Q4 2022, this should increase reserves and continue to
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 $4.4
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
May or early June 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.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.