Vancouver, British Columbia, August 20th, 2020. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an update on operations and reserves on licenses 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 news releases dated 17th August, 2020, and reference should be made to their website for guidance.

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 104/11 and 92, and PEL 630 which are not.

Beach report Western Flank reserves and contingent resources as at 30th June, 2020. 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’s reported strategy in FY2020 yielded extensions of the Bauer and Hanson oil fields and the Lowry gas field in the Western Flank, as well as identifying additional drilling opportunities. Further Western Flank oil drilling is planned for FY2021.  Gas drilling in the Western Flank is planned for FY2022.

Highlights from the Beach Annual Report dated 30th June 2020 and from their FY2020 Full Year results as reported on 17th August 2020 are as follows;


– Western Flank production increased by 35% to 9.6 MMboe.
– Beach report 2P reserves of 61.6 MMboe.
– Western Flank achieved 2P reserves replacement of 137%.
– Field extensions at Bauer, Balgowan, Congony, Kalladeina and Hanson oil fields resulted in an additional 12 MMbbl of 2P reserves.
– 36 oil and gas development wells were drilled with a 97% success rate.
– 27 horizontal oil wells were drilled, all of which were successfully cased and suspended as future producers.
– Bauer 39 achieved the longest lateral length drilled by Beach in the Western Flank to date at 1,629 metres and was brought online in FY2020, and in its first month on pump produced at an average of rate of 3,500 bopd.

– FY2020 infrastructure investment resulted in an installed capacity of approximately 23,000 bopd, enabling oil production to be doubled over the past 18 months



– Beach report record net oil production of 7.5MMboe, a 44% increase over FY2019.
– Operated oil production increased to as high as 23,000 BOPD in the second half of FY2020.
– Field operating costs were under AUD$5/bbl.
– 30 additional development wells were brought online during FY2020.
– Production has doubled over the last 2 years.


– Beach report 2P reserves of 46 MMboe (an increase of 4 MMboe over FY2019).
– Beach report an additional 11.5 MMboe 2P reserves.
– Beach report a 2P reserves replacement ratio of 159%.


– 75 oil wells were drilled in FY2020, including 26 horizontal wells.
– Productivity from horizontal wells averaged 8 times higher than from vertical wells.
– Bauer field extensions were identified in both the northern and south parts of the field.
– The Balgowan oil field was transformed from a field with a single vertical well field to one in which infrastructure expansion and multi-well horizontal drilling is being planned to maximize the recovery of a much larger reserve base.
– Beach report that drilling at Bauer continues to exceed expectations.

Appraisal Strategy

– Appraisal work continues to define field limits and an increase in field Estimated Ultimate Recovery (“EUR”).
– Beach report 2P EUR approaching 100 MMbbl (net to Beach).
– Development of the McKinlay reservoir in the Bauer, Chiton, Congony and Kalladeina fields in ex PEL 91 has reinvigorated oil production on the Western Flank.

 Proposed FY2021 Activities

– Beach are targeting maintaining gross average output above 20,000 BOPD.
– Beach are targeting FY2021 capital expenditures of $110 million.
– Further appraisal opportunities have been identified with at least 4 oil fields yet to be fully appraised.



– Gas/Gas liquids production was 2.1 MMboe, a 12% increase over FY2019.
– Field operating costs were under AUD$3/bbl.
– 3 new Gas Sales Agreements (GSAs) are in place.
– Sufficient deliverability is available to keep the Middleton facility full until FY2022 following positive drilling results in FY2019.
– Prioritized production from the higher liquids content Lowry field (ex PEL 106).


– Beach report 2P reserves at 16MMboe (even with FY2019).


-Two gas appraisal wells were drilled; both cased and suspended as future producers


Newport has no control over operating decisions by Beach. Accordingly, this prevents the Company from commenting on Beach’s operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach. This recommendation is particularly relevant with regard to the current uncertainty in the global oil markets.

The Company receives its gross overriding royalty from Beach, which is not a reporting issuer in Canada, 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.

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. 

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 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, 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.

© 2020 Newport Exploration Ltd.