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Sep 28, 2005
Update On Oil & Gas Interests In Australia
Mr. Ian Rozier, President of Newport Exploration Ltd. (the "Company") reports;
Under the terms of an agreement over the sale of CVL Resources (Barbados) Ltd. (formerly a wholly owned subsidiary of the Company) as reported in a news release dated September 4th, 2002, the Company retained a 2.5% royalty for any hydrocarbons discovered on the following petroleum exploration permit in Australia; PEL's91/106/107, ATP's 539P/549(West)/549(Cypress), 552 and EPP27.
As part of a joint venture between Beach Petroleum Ltd. ("Beach") and Great Artesian Oil & Gas Ltd., Beach will earn a 40% interest in PEL107, and Magellan Petroleum Australia Ltd. have farmed in to earn a 30% interest in the Kiana-1 and Tringa-1 wells on PEL107 by paying 60% of the costs of drilling and testing the wells. Kiana-1 has been completed as an oil and gas producer with initial flows from the Permian Patchawarra Formation of 1100 barrels of oil per day. Gas flows will be measured at a later date. The Tringa-1 well has yet to be completed. The Company will have a 2.5% royalty interest in priority to any of the Joint Venture equity interests in Kiana-1 and any other successful wells on the exploration permits over which it holds the 2.5% royalty. At this time the Company cannot speculate on the potential income from the Kiana-1 well.
The Company's main focus at this time is the Mulga Tank Nickel Project in Western Australia (see News Release dated September 26, 2005). The Company congratulates the Beach/Magellan/Great Artesian joint venture on the Kiana-1 well and wishes them every success in making further oil discoveries.
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