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Jul 24, 2014
UPDATE ON OIL AND GAS INTERESTS IN AUSTRALIA
Vancouver, BC, July 24th, 2014. Newport Exploration Ltd ("Newport" or "the Company") provides an update on Oil and Gas interests in the Cooper Basin, Australia as publically released on July 24, 2014 by Drillsearch Energy Limited ("Drillsearch") in their June 2014 Quarterly Report. Several aspects of the exploration and developments on PEL91 and PEL 106 should result in growth in future royalty proceeds, although the timing and associated revenues cannot be accurately predicted.
Highlights relevant to the prospects for future earnings for the Company include:
• Production from PEL 91 averaged 12,485 barrels of oil per day (bbls/d) during the June quarter.
• An active exploration program on PEL 91 continues with approximately 13 wells anticipated over the next 12 months.
• Of the 13 wells drilled on PEL 91 over the last 12 months, 8 wells have been cased and suspended as oil producing wells to be tied in once infrastructure is available.
• Connection of new fields KCS (Kalladeina, Congony, Sceale), Pennington and Stunsail is underway on PEL 91.
• Production from PEL 106 rose to 195,944 boe in the June Quarter.
• Work was completed in July on the upgrade of the fluid-handling facilities at Bauer on PEL 91 to increase total capacity to 50,000 bbls/d of oil and water.
• A further expansion in fluid handling of the Bauer Production Facility to 75,000 bbls/d of oil and water has been approved and is scheduled to take place over the next 12 months.
• Drillsearch's 30 June 2014 Reserve Audit is currently underway and scheduled to be released on 27 August, 2014 and will include results from Pennington North-1 and Pennington-2, as well as the Stunsail-1, Bauer-12, Bauer-13 and Chiton-3 wells drilled earlier in the year on PEL 91.
• On PEL 106, an application has been submitted to the DMITRE for a Petroleum Production Licence (PPL) over the Canunda and Coolawang fields. This will secure the acreage for the lifetime of the wells.
• Seismic work continues on PEL 632 with Santos to conduct work programs in FY2015.
• Santos is also preparing to test the integrity of the Nulla spurline that leads to the Cadenza discovery on PEL 632.
The Company considers the conversion application to a production license to be a significant development for PEL 106.
All royalty payments received by the Company will continue to be reported in our filed financial statements. The Company continues to strongly encourage shareholders and potential investors to access information released independently by Drillsearch and its joint venture partners Beach and Santos in order to keep current through this active and transformational period.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
www.newport-exploration.com www.beachenergy.com.au www.drillsearch.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of the contents of this news release.
Cautionary Statement on Forward-Looking Information
This press release, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "should", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements. These forward-looking statements pertain to assumptions regarding the price of oil, fluctuations in currency markets (specifically the Australian dollar and the U.S. dollar), the future funding of the Company's projects, and the future development of the Company's projects. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, the risk of fluctuations in the assumed exchange rates of currencies that directly impact the Company, such as Canadian dollar, Australian dollar and U.S. dollar, the risk of fluctuations in the assumed prices of oil, the risk of changes in government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Australia or other countries in which the Company carries or may carry on business in the future, risks associated with development activities, the speculative nature of exploration and development, including the risk of obtaining necessary licenses and permits, and assumed quantities or grades of reserves. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. 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.