Vancouver, British Columbia, June 7th, 2018. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an update on drilling activities on 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 news release dated 6th June, 2018, and reference should be made to their website for their interpretation of the results.
Western Flank Gas – ex PEL 106
Beach reported it continued the second phase of its five-well FY2018 operated gas exploration campaign. The first two wells were drilled in the East Block of PEL 630 (not subject to the Company’s 2.5% gross overriding royalty). The campaign then moved to 100% Beach owned ex PEL 106 (subject to the Company’s 2.5% gross overriding royalty) where exploration well, Coalinga-1, was drilled.
Coalinga-1 is located approximately 52 kilometres northwest of the Moomba plant and targeted mid-Patchawarra intervals of the Patchawarra Formation in the SWP play fairway as a primary target. After not encountering gas pay, the well was plugged back and side tracked to Coalinga-1 DW1, an alternative exploration prospect approximately 620 metres to the west. Coalinga-1 DW1 encountered 6.3 metres of net gas pay in the Patchawarra Formation and was cased and suspended as a future producer. Reservoir pressure information indicated good permeability and connection to the Brownlow Field.
The Company receives its gross overriding royalty on ex PEL 106 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.