PRODUCTION RATES CONTINUE TO BEAT EXPECTATIONS. INCREASE IN REALIZED OIL AND GAS PRICES. SUCCESSFUL DRILLING ON EX PEL 91.
Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, April 27, 2022 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company") provides an update 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 FY22 Third Quarter Activities Report dated 26 April 2022.
Highlights of the third quarter production from the Western Flank in the Beach report are as follows:
Production from the Western Flank was 1.2 MMboe, down 7% on the prior quarter, with lower oil and condensate production, offset by an increase in gas and LPG production. (Note: Western Flank includes the Company's GOR licences ex PEL's 91, 106,107 and PRL 26, as well as licenses ex PEL's 92, 104 and 111, over which the Company does not have a GOR).
Production and activities were impacted in late January due to heavy rain across the Cooper Basin. Drilling and workover rigs were demobilized and development activities ceased during February. Full operations have since recommenced with the workover rig's schedule increased to recoup lost time.
Western Flank oil production was 782 kbbl, down 12% on the prior quarter due to natural field decline and deferment of workover opportunities and well connections caused by rain delays in February. Beach state production is expected to increase in its Q4 FY22 as workover activities are accelerated and new development wells are progressively brought online.
Western Flank gas and gas liquids production was 427 kboe, up 3% on the prior quarter, primarily due to Beach's Q2 FY22 planned maintenance work at the Middleton gas processing facility, followed by reduced production at Middleton due to an unplanned outage at Beach's Lowry well pad. Beach's Q3 FY22 gas and gas liquids production was impacted by natural field decline and unplanned maintenance in the Middleton field.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
The average realized price of oil was AUD$176.5/bbl, up 51% on the prior quarter.
The realized gas price was AUD$8.4 per GJ, a 10% increase on the prior quarter.
Beach report their average realized price across all products was AUD$87.7/boe, a 21% increase over the prior quarter.
Development
On ex PEL 91, Beach completed the final well of the five-well horizontal campaign, Kalladeina 16. All wells drilled in this campaign were successfully cased and suspended for production. At quarter-end, two horizontal wells had been brought online with the remaining three wells to come online in Beach's Q4 FY22.
Exploration
Beach commenced an 11-well Namur/McKinlay oil exploration campaign. Two wells were drilled on ex PEL 91, Morialta 1 and Magic Beach 1. Morialta 1 was plugged and abandoned subsequent to quarter end. Magic Beach 1, intersected 2.7 metres of net oil pay in the Namur Reservoir. Beach note that the results indicate potential for oil migration to the northeast of previously discovered fields. Further analysis, including reprocessing of seismic data, will be undertaken by Beach to assess if a structurally up-dip location exists for follow-up drilling.
"We are pleased with Beach's recent drilling success on our GOR licences, and with the three horizontal wells brought on line in Beach's Q3 2022 and the two remaining wells being brought online in their Q4 2022, this should increase reserves and continue to reduce previously anticipated field decline rates." stated Ian Rozier, President & CEO of 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 $4.4 million in the treasury (comprised of cash, cash equivalents and short-term investments) and no debt.
Details of the next GOR payment will be reported at the end of May or early June 2022.
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.
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.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.
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