Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, April 17,
2023 /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 FY23
Third Quarter Activities Report dated 13
April 2023.
Production
Highlights of the third quarter production from the Western
Flank as reported by Beach are as follows:
Production from the Western Flank was 0.9 MMboe, down 6% on the
prior quarter (Note: Western Flank includes the Company's GOR
licences ex PEL's 91, 106, 107 and PRL 26, as well as licences ex
PEL's 92, 104 and 111, over which the Company does not have a GOR).
Daily production rates increased towards the end of the quarter due
to clearing the inventory of unconnected wells from the prior
quarter. Beach report that subsequent to its quarter-end,
daily production rates exceeded 10,000 bopd, the highest rate since
November 2021.
Beach report that production from the recently completed
six-well Birkhead fracture stimulation campaign provided
encouraging results which support ongoing evaluation of both
vertical and horizontal fracture stimulation opportunities in the
Birkhead Formation.
Beach is expecting full year Western Flank oil production
decline of more than 10% compared to FY22 (FY22 Western Flank oil
production: 3.4 MMbbl). Full year production will be
dependent on the performance of recently connected wells and
additional wells to be brought online in Q4 FY23.
Western Flank oil production was 646 kbbl, down 1% on the prior
quarter, and gas and gas liquids production of 240 kboe was 16%
below the prior quarter.
A further nine wells are expected to be brought online by the
end of Beach's financial year, comprising six drilled but
unconnected wells at 31 March 2023
and three wells still to be drilled.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Realized Gas & Oil
Prices
The average realized price of oil was AUD$133.2/bbl, a 6%
decrease over the prior quarter.
The average realized gas price was AUD$8.9 per GJ, a 7% increase
over the prior quarter.
Beach report their average realized price across all products
was AUD$76.9/boe, a 3% decrease over the prior quarter.
Q3 FY23 Drilling
Activities
On EX PEL 91, Beach commenced a seven-well oil development well
campaign targeting the McKinlay Member and Namur Sandstone in the
Bauer and Arno fields, with three horizontal wells cased and
suspended as future producers.
Bauer 72 drilled an 871 metre lateral section and intersected
181 metres of net oil pay.
Bauer 71 drilled a 792 metre lateral section and intersected 192
metres of net oil pay.
Bauer 71 DW1 was drilled from the Bauer 71 wellbore and
completed to enable co-mingled production from both lateral
sections, saving cost and time. The well drilled a 674 metre
lateral section, intersecting 303 metres of net oil pay.
Bauer 74 was drilling ahead at quarter-end with an additional
three wells in the campaign to be drilled in Q4 FY23.
"Oil production is down only one percent and drilling results
on Bauer have been excellent. With nine wells soon to be
brought online, we remain confident about future production from EX
PEL 91", stated Ian Rozier,
President & CEO of Newport.
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 licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and
outstanding and approximately $3.2
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 2023.
info@newport-exploration.com
www.newport-exploration.com
www.beachenergy.com.au
www.santos.com
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.
© 2023 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.