Vancouver, Canada, April 24th, 2024. Newport Exploration Ltd (“Newport” or “the Company”) provides an update 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 FY24 Third Quarter Activities Report dated 24 April 2024.
Production
Highlights of the third quarter production from the Western Flank as reported by Beach are as follows:
Production from the Western Flank was 797 kboe, 10% below the prior quarter (Note: Western Flank includes the Company’s GOR licences ex PEL’s 91, 106, 107 and PRL 26, as well as licences ex PEL’s 92, 104 and 111, over which the Company does not have a GOR).
Western Flank oil production of 562 kbbl was 14% below the prior quarter due to natural field decline and interruptions form extensive rain early in the quarter. Additionally, at quarter-end, heavy rain impacted all operations areas of the Western Flank. Since the beginning of April, oil production has been impacted by ~2.0 kbopd (Q3 FY24 average: 6.2 kbopd). It is expected that oil production will be impacted for approximately one month while affected operations are restored.
Gas and gas liquids production of 235 kboe was in line with the prior quarter.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Realized Gas & Oil Prices
The average realized price of oil was AUD$141/bbl, a 2% decrease over the prior quarter.
The average realized price of gas was AUD$9.7 per GJ, a 9% increase over the prior quarter.
Beach report their average realized price across all products was AUD$81/boe, a 9% decrease over the prior quarter.
Q3 FY24 Drilling Activities
Beach reports that a review of results from the FY24 drilling campaign is underway to inform potential future appraisal and development activity. Re-building of inventory for potential future exploration activity is also underway, including planning for 3D seismic acquisition and re-working of existing data sets.
About Newport
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 licences subject to the Company’s GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $1.9 million in the treasury (comprised of cash, cash equivalents and short-term investments) and no debt.
Details of the next GOR payment will be reported at the end of May or early June 2024.
For further information contact;
Ian Rozier, M.Sc.,
P. Eng (Non-Practising)
Director and Chief Executive Officer
+1 604 685 6851