Vancouver, British Columbia, July 26th, 2018. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an update on drilling activities and production on ex PEL 91 and ex PEL 106 in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty. This information was reported by Beach Energy Ltd (“Beach”) (ASX: BPT) in a quarterly report dated 26th July, 2018, and reference should be made to their website for their interpretation of the results and any plans to bring wells into production.
Beach report that they propose an expanded FY2019 drilling program on ex PEL 91 using information acquired from the first three horizontal wells drilled.
Beach also report that phase one of the Middleton gas expansion was completed on 30 June and is already producing at rates of up to 40 MMscfd of raw gas. The phase two expansion to optimize liquids handling is expected to occur in the first half of FY2019.
Beach report that, Western Flank gas production increased 1% (to 355 kboe) over the prior quarter, despite higher levels of planned maintenance at Moomba. New gas well connections from Largs-1, Crawford-1 and Naiko-1 were completed and are ready for FY2019 production as required. (Note: With respect to the disclosure of “BOE’s”, in accordance with the Standards of Disclosure for Oil and Gas Activities (51-101, 5.14(d)), it should be noted that for the value of this to the Company’s royalty payments, BOE conversion is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.)
Beach report that, Western Flank oil production from ex PEL 91 declined 10%, following a 20% increase in its March quarter, but still produced 889 kboe. Natural field decline was partially offset by capacity expansions at Stunsail and Hanson facilities and new wells were brought online at Stunsail-6, -7 and Snellings-1.
The Company receives its gross overriding royalty on ex PEL 91 from Beach, 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 forecast 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 guidance of all the licences subject to the Company’s gross overriding royalty.
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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 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.