Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Aug. 16,
2022 /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 2022
Annual Report and FY22 Results Presentation, both dated
15th August 2022.
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 5.2
MMboe, a decrease of 42% from the prior year.
As mentioned in previous news releases, production was adversely
impacted by workover activity constraints including COVID-19 border
restrictions and heavy rain across the Cooper Basin, which delayed
well connections and other development activities. Despite
these challenges, oil production decline of 32% was recorded
compared with original guidance of 35-45%. The improved
decline profile was a result of refined reservoir management
strategies, workover and optimization activities and positive
development well results.
Beach are targeting flat oil production in FY23.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Reserves
Beach report Western Flank reserves and contingent resources as
at 30th June, 2022. 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 2022:
- Oil – 7 MMboe (36% is attributable to the Company's GOR
licences)
- Gas – 3 MMboe (67% is attributable to the Company's GOR
licences)
Beach report the following Western Flank 2P reserves at
30th June 2022:
- Oil – 19 MMboe (40% is attributable to the Company's GOR
licences)
- Gas – 4 MMboe (72% is attributable to the Company's GOR
licences)
FY23 Focus
Beach's focus for FY23 in the Western Flank is as follows;
- Single-rig drilling campaign and workover rig activities
throughout the year.
- Four near field oil exploration and appraisal drilling
targeting the Namur and Birkhead
reservoirs in ex PEL 91 and ex PEL 92.
- Drilling up to 11 appraisal wells.
- Drilling up to 10 horizontal oil development wells in the
Bauer, Growler and Spitfire fields.
- Contingent wells, including potential gas exploration, subject
to early drilling results.
- Ongoing workover and optimization activities.
New seismic techniques (Pre-Stack Depth Migration "PSDM")
improved accuracy of depth imaging (key uncertainty), this approach
is to be applied across the Western Flank for future exploration
and appraisal activity.
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 $3.2
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.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.