Vancouver, British Columbia, August 21st, 2017. Newport Exploration Ltd (“Newport” or “the Company”) is able to provide an update on ex PEL’s 91, 106, 107 and 632 in the Cooper Basin, Australia on which the Company has a 2.5% gross overriding royalty. This information was reported by Beach Energy Ltd (“Beach”) on August 18th, 2017 entitled “Reserves and Contingent Resources as at 30 June 2017” (“Reserves Report”). The timing and any associated revenues to the Company resulting from the production from these Reserves and Resources as reported by Beach in ex PEL’s 91, 106, 107 and 632 cannot be predicted by the Company.
For a detailed breakdown of Beach’s estimated Reserves and Resources on ex PEL’s 91, 106, 107 and 632 reference should be made to the above referenced Beach news release and Full Year Report for the year ended 30th June 2017 (“Full Year Report”). The Company does not have access to the underlying technical data and cannot independently verify the Oil and Gas Reserves and Resources as reported by Beach in accordance with classification requirements in compliance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook (“COGEH”). As the Reserves and Resources reported by Beach may not satisfy the definitions of Reserves and Resources for the purposes of NI 51-101 Canadian reporting requirements, the Company cannot directly report the Reserves and Resources as reported by Beach. The Reserve classification system being used by Beach for Reserve Estimation is governed by the “Reserves and Resources Disclosure Rules for Mining and Oil and Gas Companies” as required by the Australian Securities Exchange Rules and in compliance with the Petroleum Resources Management System (“SPE-PRMS”) guidelines, an internationally recognized Reserve Classification system for Oil and Gas properties which does not comply with Canadian reporting requirements.
Reserve Revisions
For a detailed breakdown of Beach’s 1P, 2P and 3P reserve estimates and revisions, reference should be made to the tables provided in Beach’s Reserves Report.
In summary, Beach recorded a 2P reserves replacement ratio of 179% for the 12 month period ended 30 June 2017, with year-end 2P oil and gas reserves 7% higher than the prior year. Beach’s upward reserve revisions predominantly relate to operated acreage following new discoveries, field extensions, identification of additional development opportunities, strong field production performances and operating cost efficiencies.
Material Increase to 2P reserves
In their Reserves and Contingent Resources report Beach also provide tables that summarize their material changes in 2P reserve bookings subject to the Company’s 2.5% gross overriding royalty.
The material increases in ex PEL 91 resulted from Beach’s analysis of producing wells, the Kangaroo-1 discovery, identification of new development locations in the Bauer and Chiton fields and the horizontal well targeting the McKinlay reservoir in the Bauer Field. Material increases in ex PEL 106 resulted from successful exploration drilling at Canunda-3, Crockery-1 and Mokami-1, and better than forecast production performance at Brownlow-1 and Ralgnal-1.
Material Increases to 1P reserves
Beach’s Reserves Report also provides the changes in 1P reserves subject to the Company’s 2.5% gross overriding royalty.
In summary, material increases in ex PEL 91 resulted from decline analysis of all wells which improved recovery estimates, the horizontal well targeting the McKinlay reservoir in the Bauer Field, and the Kangaroo-1 discovery. Material increases in ex PEL 106 resulted from successful exploration drilling at Canunda-3, Crockery-1 and Mokami-1, and better than forecast production performance at Brownlow-1 and Ralgnal-1.
Full details on Reserves and Resources, as well as their development plans for the various permits on which the Company has a 2.5% gross overriding royalty are provided in Beach’s Full Year Report.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd. in order to keep current during an active period in the exploration and development of these permits.
For further information contact:
Ian Rozier, 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, 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.