Vancouver, British Columbia, July 3rd, 2018. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an update on on reserves on ex PEL 91 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 news release dated 2nd July, 2018, and reference should be made to their website for their interpretation and guidance.
Beach report reserves and contingent resources as at 30 June 2018. Categories presented for reserves on ex PEL 91 are 1P reserves (Proved) and 2P reserves (Proved and Probable). Reported 1P and 2P reserves on ex PEL 91 have been independently audited by RISC Advisory.
Beach state that since reporting reserves as at 30 June 2017, there have been material changes to reserves driven by drilling, reservoir performance and cost reduction in the Cooper Basin. On ex PEL 91 Beach report the addition of 12 MMboe 1P and 14 MMboe 2P reserves based on existing well performance and new well locations identified in the McKinlay Formation across various fields. This follows the success of well Bauer-26. The revision of 2P reserves is due to improved well performance and the successful application of horizontal drilling technology in the McKinlay and Birkhead reservoirs.
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.
Beach prepares its petroleum reserves and contingent resources estimates in accordance with the Petroleum Resources Management System (PRMS) published by the Society of Petroleum Engineers. All estimates of petroleum reserves and contingent resources reported by Beach are prepared by, or under the supervision of, a qualified petroleum reserves and resources evaluator. Beach has engaged the services of RISC Advisory to independently audit Beach’s petroleum reserves estimates prior to Beach reporting any updated estimates.
The Company is unable to forecast potential productivity for each well on ex PEL 91 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.