Vancouver, British Columbia, March 7th, 2018.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an activity update on licenses 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") (ASX: BPT) in a news release dated 7th March, 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 Oil - ex PEL 91
Beach report its operated drilling program returned to the Stunsail Field, located approximately 16 kilometres northeast of the Bauer Field, to undertake the second phase of the full field development project. The second phase is to comprise two horizontal wells, one targeting the Birkhead Formation and one targeting the McKinlay Member with final well plans incorporating data obtained from the two vertical wells of the first phase of the development project completed in January.
Stunsail-6 the first well of the second phase targeted horizontal development of the Birkhead Formation. This well is the first horizontal well within the Birkhead Formation on the Western Flank, and is designed to develop the Birkhead reservoir and evaluate the effectiveness of the development technique within the reservoir. The well drilled a 585 metre lateral section where it encountered 203 metres of net oil pay and is to be completed as a future Birkhead producer. It is anticipated that the well will be brought online in Q4 FY2018.
EXPLORATION AND APPRAISAL
Western Flank Oil - ex PEL 91
Beach report that it completed a two-well oil appraisal campaign of the Kalladeina Field, located approximately 10 to 15 kilometres north northeast of the Bauer Field. The aim of the campaign was to extend the proven limits of the field to allow future in-fill development. The Kalladeina Field has recently been re-mapped utilising the Solidus 3D seismic survey incorporating outputs from the velocity modelling project. This project identified a potential extension of the Kalladeina Field to the north of existing well control.
The second appraisal well, Kalladeina North-1, was drilled approximately 2 kilometres north of the recent Kalladeina-3 appraisal well and targeted the McKinlay Member as a primary objective with the Namur Sandstone as a secondary objective. The well intersected a six metre oil column within the McKinlay Member, within which 2.5 metres of net pay was interpreted. The well was cased and suspended as a future McKinlay oil producer. This well may also provide a depth control point for future McKinlay Member horizontal development drilling in the Kalladeina Field.
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 forecast 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
+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 financial 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 the price of oil and fluctuations in currency markets (specifically the Australian dollar). 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.