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Aug 25, 2014
OIL AND GAS RESERVES FOR PEL 91 AND PEL 106 REPORTED BY BEACH ENERGY LIMITED
Vancouver, B.C., August 25th, 2014. Newport Exploration Ltd ("Newport" or "the Company") provides an update on Oil and Gas interests in the Cooper Basin, Australia as publicly reported by Beach Energy Ltd ("Beach") in its full year presentation on August 25th, 2014 and a news release dated August 25th, 2014 entitled , "1P, 2P and 3P Reserves and 2C Contingent Resources as at 30thJune, 2014". The Beach news release makes reference to Reserves and Resources on PEL 91 and PEL 106 that are subject to the Company's 2.5% overriding royalty.
In its news release Beach provide a breakdown of 2P Reserves by individual permit, including estimated Reserves on PEL 91 and PEL 106 in the Cooper Basin, Australia, as well as a detailed breakdown of 1P, 2P and 3P Oil Reserves at the Stunsail and Pennington fields in PEL 91.
The Reserve classification system being used by Beach for Reserve Estimation is governed by the "Reserves and Resources Disclosure Rules for Mining and Oil and Gas Companies" as required by the Australian Securities Exchange Rules and in compliance with the Petroleum Resources Management System ("SPE-PRMS") guidelines - an internationally recognized Reserve Classification system for Oil and Gas properties.
The Company does not have access to the underlying technical data and cannot independently verify the Oil and gas Reserves and Resources in accordance with classification requirements in compliance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook ("COGEH"). Accordingly, as the Reserves and Resources for PEL 91 and PEL 106 as reported by Beach are not necessarily compliant with NI 51-101 Canadian reporting requirements, they should not be relied upon. Also, the Beach release refers to Barrels of Oil Equivalent ("BOE"). In accordance with Section 5.14 (d) of NI-101 for Canadian reporting purposes this disclosure must include a cautionary statement to the effect that: "BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead".
The timing and any associated revenues to the Company resulting from the production from these Reserves and Resources as reported in PEL 91 and PEL 106 cannot be predicted by the Company.
Beach disclosed that over the Beach FY15, it has planned a 500 km2 3D seismic program and a proposed 19 well exploration, appraisal and development program for PEL 91. On PEL 106, Beach disclosed a 4 well program of 3 exploration wells and 1 appraisal well.
Beach reported that production from PEL 91 was up 280% over the past year, with average gross production of 12,600 bopd and production from PEL 106 being up by 60%, with average gross gas and gas liquids production of 0.9 MMboe.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach, Drillsearch and Santos in order to keep current during an active period in the exploration and development of these permits.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
+1 604 685 6851
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the accuracy or adequacy 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", "could", "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, which 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 the 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 developmental 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 statement s 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.