Vancouver, British Columbia, January 10th, 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 10th January, 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 Gas – ex PEL 106, ex PEL 91
Beach completed the initial phase of the FY 2018 operated gas exploration and appraisal campaign, which focused on the Southwest Patchawarra (SWP) and Permian Edge (PE) play fairways. The fifth well, exploration well Largs-1, located in the SWP immediately south of the Middleton gas facility, targeted stratigraphically trapped gas in the mid-to-lower intervals of the Patchawarra Formation. Largs-1 intersected reservoir sands of sub-commercial quality and was sidetracked in a northwesterly direction. The sidetrack well, Largs-1 DW1, intersected three gas pay zones totalling 12.8 metres of net pay across a 19.2 metre gross interval. Pressure data confirmed the shallowest gas sand to be a new field discovery. Further testing was not required and the well was cased and suspended as a future producer.
The initial phase of Beach’s campaign was completed with exploration well Squeaky-1. Squeaky-1 is located in ex PEL 91 in the PE play fairway approximately eight kilometres west of the Middleton gas facility and targeted a stratigraphic prospect. Despite moderate gas shows, gas pay of sub-commercial quality was interpreted and the well was plugged and abandoned.
The initial phase of Beach’s FY 2018 operated gas drilling campaign proved successful with four exploration successes from six wells (Lowry-1, Crawford-1, Naiko-1, Largs-1 DW1), including new field discoveries at Lowry and Largs. Beach reports the cased and suspended wells will be brought on line progressively in early FY 2019.
Beach’s operated drilling program will now move northwards to the Stunsail and Kalladeina fields in ex PEL 91 where an oil appraisal and development campaign will be undertaken in its Q3 FY 2018.
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 report on the 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.