Vancouver, British Columbia, February 7th, 2018. Newport Exploration Ltd (“Newport” or “the Company”) is pleased to provide an exploration activity update on licences 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”) in a News Release dated 7th February, 2018 and, reference should be made to their website for their interpretation of the results and any plans to bring wells into production.
Western Flank Oil – ex PEL 91
Beach reports that its operated drilling program moved northwards to the Stunsail Field in ex PEL 91 where a full field development project commenced. The development project will comprise four wells from two, two-well campaigns.
The first two-well campaign was completed and consisted of pad-drilled vertical wells, Stunsail-4 and Stunsail-5, targeting the upper Namur and mid-Namur sandstones. The wells both intersected 2.5 metres of net oil pay in the upper Namur and 4.7 metres in the McKinlay Member. Stunsail-4 also intersected 0.7 metres of net pay in the mid-Namur. Both wells were cased and suspended as future Namur Sandstone producers.
Stunsail-4 and -5 also provided important appraisal information for the second phase of the campaign, two horizontal wells scheduled for later in the second half of Beach’s FY2018. The wells provided depth control points to ensure optimal lateral sections are drilled through the Birkhead and McKinlay Member formations, which will be targeted by the respective horizontal wells.
EXPLORATION AND APPRAISAL
Western Flank Oil – ex PEL 91
Beach reports it commenced a two-well oil appraisal campaign of the Kalladeina Field, located approximately 10 to 15 kilometres north northeast of the Bauer Field. The aim of the campaign is to extend the proven limits of the field to allow future in-fill development.
The Kalladeina Field has recently been re-mapped utilising the Solidus 3D seismic survey incorporating outputs from the velocity modelling project. This project identified a potential extension of the Kalladeina Field to the north of existing well control.
Kalladeina-3 was drilled approximately one kilometre to the north of the Kalladeina-2 McKinlay oil producer, and intersected 2.5 metres of net pay in the McKinlay Member. The well was cased and suspended as a future McKinlay oil producer. This well may also provide a depth control point for future McKinlay Member horizontal development drilling in the Kalladeina Field.
The Company receives its gross overriding royalty from the operator 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.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
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, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “should”, “could”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. These forward-looking statements pertain to assumptions regarding the price of oil, fluctuations in currency markets (specifically the Australian dollar), and the future development of the Company’s project. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, which considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in forward-looking statements. Such 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. Many of these uncertainties and contingencies may affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. 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.