Vancouver, British Columbia, February 22nd, 2017. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an activity update on ex-PEL’s 91 and 106 in the Cooper Basin, Australia on which the Company has a 2.5% gross overriding royalty.
Beach Energy Ltd (“Beach”) reported the update in their Half Year Report for the six months ended 31 December 2016 (the “Half Year Report”) and, in their FY17 Half Year Results presentation (the “Presentation”). Reference should be made to Beach’s website for their interpretation of results and plans to bring certain wells into production. Both the Half Year Report and Presentation discuss certain events that have been previously disclosed by the Company and therefore, are not contained in this news release.
DEVELOPMENT
Hanson-4 Development Well (ex-PEL 91)
As reported in the Company’s News Release dated September 8th, 2016, the Hanson-4 well targeted oil bearing reservoirs in the Namur Sandstone and overlaying McKinlay Member. Beach report that the Hanson-4 well commenced production in Q2 FY17.
Stunsail-3 Well (ex-PEL 91)
As reported in the Company’s News Release dated October 5th, 2016, the Stunsail-3 well was drilled to develop oil bearings reservoirs in the Namur and Mid-Namur Sandstone in the Stunsail field. Beach report that the Stunsail-3 well also commenced production in Q2 FY17.
Kangaroo-1, September-1 and Osmanli-1 Wells (ex-PEL 91)
All information reported by Beach on their wells in their Half Year report has been disclosed in previous News Releases by the Company.
Western Flank Gas (ex-PEL 106)
All information recently reported by Beach on the Canunda-3 well and on their plans to develop the PEL 106 permit area has previously been disclosed by the Company in a News Release dated January 11th, 2017.
A Gas Sales Agreement with Adelaide Brighton on ex-PEL 106 was signed and Beach report that the supply of gas commenced on January 1st, 2017.
Gas Appraisal and Development
Beach report that the Middleton compression project is expected to be completed by end of Q3 FY17 and will enable 25 MMscfd raw gas capacity to be reached and maintained with 20 MMscfd net gas/liquids production and 25-35 bbl/MMscf average liquids content; Canunda-3 is expected to have an on-line rate of >3 MMscfd with high liquids content (> 150 bbl/MMscf) based on the result from two drill stem tests.
EXPLORATION
Beach report that the FY17 drilling program has been increased from 13 to 18 wells.
Beach will be drilling Kangaroo-1 follow-up wells on ex-PEL 91 to calibrate predictive reservoir models to support a horizontal drilling pilot program, as well as the potential ‘roll-out’ of horizontal Birkhead drilling in FY18.
PRODUCTION GUIDANCE
Beach report Full Year productive guidance increased to 10.3-10.7 MMboe (previously 9.7-10.3 MMboe).
The Company receives a gross overriding royalty from the operator who is not a reporting issuer in Canada, and therefore, not required to comply with the requirements of NI 51-101 – Standards of Disclosure for Oil and Gas Activities hence, Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101 – Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.
The Company is unable to report on the potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and production of all the licenses subject to the Company’s gross overriding royalty.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
+1 604 685 6851
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, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “should”, “could”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. These forward-looking statements pertain to assumptions regarding the price of oil, fluctuations in currency markets (specifically the Australian dollar), and the future development of the Company’s project. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, which considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in forward-looking statements. Such 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. Many of these uncertainties and contingencies may affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. 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.