Vancouver, Canada, August 15th, 2023.
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 2023 Annual Report and FY23 Results Presentation, both dated 14th August 2023.
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.
Beach report total Western Flank production for the year was 3.8 MMboe, a decrease of 27% from the prior year.
The decrease in oil production was primarily attributable to flooding in the Cooper Creek, weather related downtime and challenges arising from changes to the drill schedule due to rain delays. Beach report there was an uptick in oil production toward the end of its year.
Lower gas and associated liquids production was due to natural field decline.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Beach report Western Flank reserves and contingent resources as at 30th June, 2023. 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 2023:
- Oil – 6.2 MMboe (26% is attributable to the Company’s GOR licences)
- Gas – 1.7 MMboe (53% is attributable to the Company’s GOR licences)
Beach report the following Western Flank 2P reserves at 30th June 2023:
- Oil – 16.1 MMboe (39% is attributable to the Company’s GOR licences)
- Gas – 2.4 MMboe (63% is attributable to the Company’s GOR licences)
Beach’s focus for FY24 in the Western Flank is as follows;
- Drilling campaign with a greater focus on oil exploration and appraisal
- Single-rig drilling campaign and workover rig activities
- Targeting 20-30 wells per year
- Ongoing production optimization
Beach look to build inventory for future activity.
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 licenses subject to the Company’s GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $2.6 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
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 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 Beach’s drilling plans, the price of oil and fluctuations in currency markets (specifically the Australian dollar) and future dividend payments. 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.
© 2023 Newport Exploration Ltd.