August 13th, 2024. 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 2024 Annual Report and FY24 Results Presentation, both dated 12th August 2024.
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 licences ex PEL’s 92, 104 and 111, over which the Company does not have a GOR.
Production
Beach report total Western Flank production for the year was 3.4 MMboe, a decrease of 12% from the prior year. Beach expects FY25 natural field decline of up to 40% while drilling inventory is refreshed.
The decrease in production was mainly due to natural field decline and production interruptions from heavy rain in the Western Flank, partially offset by new oil well connections early in the year.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Reserves
Beach report Western Flank reserves and contingent resources as at 30th June, 2024. 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 2024:
- Oil – 5.9 MMboe (31% is attributable to the Company’s GOR licences)
- Gas – 1.9 MMboe (63% is attributable to the Company’s GOR licences)
Beach report the following Western Flank 2P reserves at 30th June 2024:
- Oil – 13 MMboe (38% is attributable to the Company’s GOR licences)
- Gas – 2.5 MMboe (64% is attributable to the Company’s GOR licences)
FY25 Focus
Beach’s focus for FY25 in the Western Flank is as follows;
- Oil development drilling from Q4 2025 (Bauer field)
- Refresh of exploration inventory for potential FY26 drilling
- Optimization initiatives for sustainable cost savings
About Newport
Newport has a 2.5% Gross Overriding Royalty (“GOR”) over permits in the Cooper Basin, Australia, operated by Beach Energy Ltd (“Beach”). There is no time limit or expiry date on the GOR assets, and no cost to the Company to retain them.
Newport has no control over operating decisions made by Beach. Accordingly, this prevents the Company from commenting on Beach’s operating plans going forward. 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 potential production of all the licences subject to the Company’s GOR. The Company receives its GOR from Beach, which is not a reporting issuer in Canada, therefore 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 currently has 105,579,874 common shares issued and outstanding and approximately $1.6 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