Vancouver, Canada, August 16th, 2022. Newport Exploration Ltd (“Newport” or “the Company”) provides an update on operations and reserves for licences 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 its 2022 Annual Report and FY22 Results Presentation, both dated 15th August 2022.
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 92, 104/111, PEL’s 113/115/516/90/93, PRL’s 83, 135 and PPL 270 which are not.
Beach report total Western Flank production for the year was 5.2 MMboe, a decrease of 42% from the prior year.
As mentioned in previous news releases, production was adversely impacted by workover activity constraints including COVID-19 border restrictions and heavy rain across the Cooper Basin, which delayed well connections and other development activities. Despite these challenges, oil production decline of 32% was recorded compared with original guidance of 35-45%. The improved decline profile was a result of refined reservoir management strategies, workover and optimization activities and positive development well results.
Beach are targeting flat oil production in FY23.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Beach report Western Flank reserves and contingent resources as at 30th June, 2022. 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 report the following Western Flank 1P reserves at 30th June 2022:
- Oil – 7 MMboe (36% is attributable to the Company’s GOR licences)
- Gas – 3 MMboe (67% is attributable to the Company’s GOR licences)
Beach report the following Western Flank 2P reserves at 30th June 2022:
- Oil – 19 MMboe (40% is attributable to the Company’s GOR licences)
- Gas – 4 MMboe (72% is attributable to the Company’s GOR licences)
Beach’s focus for FY23 in the Western Flank is as follows;
- Single-rig drilling campaign and workover rig activities throughout the year.
- Four near field oil exploration and appraisal drilling targeting the Namur and Birkhead reservoirs in ex PEL 91 and ex PEL 92.
- Drilling up to 11 appraisal wells.
- Drilling up to 10 horizontal oil development wells in the Bauer, Growler and Spitfire fields.
- Contingent wells, including potential gas exploration, subject to early drilling results.
- Ongoing workover and optimization activities.
New seismic techniques (Pre-Stack Depth Migration “PSDM”) improved accuracy of depth imaging (key uncertainty), this approach is to be applied across the Western Flank for future exploration and appraisal activity.
The Company receives its GOR from Beach, which is not a reporting issuer in Canada. Therefore Newport is not able to confirm if disclosure satisfies the requirements of Canadian Securities legislation.
Newport has no control over operating decisions made by Beach and is not privy to exploration or production data derived by Beach during operations. Accordingly, this prevents the Company from commenting on operating plans going forward.
As always, the Company recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos Ltd in order to keep current during exploration, development and production of all the licenses subject to the Company’s GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $3.2 million in the treasury (comprised of cash, cash equivalents, and short-term investments), and no debt.
For further information contact:
Ian Rozier, M.Sc., P. Eng (Non-Practising)
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, future dividends, 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.
© 2022 Newport Exploration Ltd.