Vancouver, British Columbia, November 1st, 2017 Newport Exploration Ltd (“Newport” or “the Company”) provides an update on exploration activities on PRL 26 in the Cooper Basin, Australia on which the Company has a 2.5% gross overriding royalty. This information was reported by Beach Energy Ltd (“Beach”) (ASX: BPT) in a news release dated November 1st, 2017, and reference should be made to their website for their interpretation of the results and any plans to bring wells into production.
Western Flank Gas – PRL 26 (Udacha Block); ex PEL 106
Beach continued its FY2018 operated gas exploration and appraisal campaign, which is focused on the Southwest Patchawarra (SWP) and Permian Edge (PE) play fairways. The second exploration well of the campaign, Lowry-1, is located in the SWP play fairway approximately four kilometres northwest of the Middleton gas facility. The well targeted stratigraphically trapped, liquids-rich, gas in the sands of the Patchawarra Formation. Lowry-1 intersected 3.3 metres of net pay and was cased and suspended as a future producer. A two hour drill stem test was conducted over the interval 2,586 – 2,593 metres. The well flowed at 9.4 MMscfd on a 48/64″ choke at 955 psi flowing pressure. Approximately 34 bbl of condensate was recovered at a rate of approximately 400 bopd. Analysis of test results confirms Lowry-1 as a new discovery which is not connected to nearby producing fields. The discovery has provided further validation for the approved expansion of the Middleton gas facility from 25 MMscfd to 40 MMscfd.
The third exploration well of the campaign, Crawford-1, is located approximately two kilometres northwest of the Middleton gas facility and proximal to the Brownlow, Middleton and Udacha fields. Crawford-1 tested stratigraphic traps within the gas and condensate system of the SWP play fairway and targeted Mid-Patchawarra Formation intervals. Crawford-1 intersected 4.1 metres of net gas pay in the target interval and was cased and suspended as a future producer. Reservoir pressure information indicated good permeability and connection to the Brownlow Field, which is expected to enable incremental reserves to be booked and produced.
The Company receives a gross overriding royalty from Beach who, is not a reporting issuer in Canada and therefore, 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. Data provided by Beach should be considered preliminary and, results are not indicative of long-term performance or of ultimate recovery.
The Company 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 licences subject to the Company’s gross overriding royalty.
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.