Beach Report Annual Production Results, Updated Reserves and FY22 Drilling Program
Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Aug. 17, 2021 /CNW/ - 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 2021 Annual Report and FY21 Results Presentation, both dated 16th August 2021.
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 for ex PEL's 92, 104/111, PEL's 113/115/516/90/93, PRL's 83, 135 and PPL 270 which are not.
Production
Beach report total Western Flank production for the year was 8.9 MMboe, a decrease of 7% from the prior year;
- Western Flank oil production was 6.7 MMboe, down 10% from FY20.
- Western Flank gas and associated liquids production was 2.2 MMboe, up 3% from FY20.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
During FY21, Beach report Western Flank unit field operating costs were less than AUD$6 per boe.
Beach drilled and operated a total of 21 Western Flank oil wells during FY21, 11 of which were in the Bauer Field.
Reserves
Beach report Western Flank reserves and contingent resources as at 30th June, 2021. 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 2021:
- Oil – 10 MMboe (56% is attributable to the Company's GOR licences)
- Gas – 5 MMboe (79% is attributable to the Company's GOR licences)
Beach report the following Western Flank 2P reserves at 30th June 2021:
- Oil – 26 MMboe (60% is attributable to the Company's GOR licences)
- Gas – 8 MMboe (82% is attributable to the Company's GOR licences)
Despite the FY21 reserves downgrade (see Company news release dated April 30th, 2021), the four-year Western Flank 2P oil reserve replacement ratio is 125%.
FY22 Program
Beach report it has more than 100 prospects and leads across the Western Flank oil and gas acreage.
As previously reported in a Company News Release dated July 22nd, 2021, Beach has undertaken a thorough review of the Western Flank and plans to recommence drilling operations on the Western Flank oil and gas assets during its FY22. The program aims to help reduce the current decline being experienced across Beach's Western Flank oil fields and extend plateau production from Western Flank gas fields.
The planned program comprises the drilling of seven wells, including three oil wells and four gas wells. Oil exploration is then planned subject to finalization of drilling targets.
As reported by Beach, the first well in its drilling program spudded early in their FY22.
Chu Chua Copper-Gold Project.
The Company was able to access the Chu Chua property during early July 2021 just prior to the extreme forest fire risk in Central British Columbia in order to conduct a site visit and work as part of the proposed update to the NI43-101 Technical Report. The Company has been approached by several parties looking to enter into joint venture and/or earn-in agreements on the project and management will continue to evaluate all options to move the project forward in the best interests of its shareholders.
"The prudent capital management plan and focus on maintaining a strong balance sheet has allowed the Company to withstand the oil price shock of 2019, and notwithstanding the Company reporting a 100% increase for the previous two dividend periods, Newport maintains a healthy balance sheet with no debt" stated Ian Rozier, President and CEO.
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 licenses subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $5.2 million in the treasury (comprised of cash, cash equivalents, and short-term investments), and no debt.
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, future dividends, 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.
© 2021 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.
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