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Nov 25, 2014
BAUER-19 WELL IN PPL 253 (EX PEL 91) INTERSECTS 12.7M OF NET OIL PAY AND SUCCESSFUL STUNSAIL-1 FLOW TEST
Vancouver, B.C., November 25th, 2014. Newport Exploration Ltd ("Newport" or "the Company") is pleased to report the successful completion of the Bauer-19 development well in PPL 253 (previously part of PEL 91 as per the Company's news release dated October 15th, 2014) and that the Stunsail-1 well was successfully flow tested prior to being brought on line in the Cooper Basin, Australia. Both wells are subject to the Company's 2.5% gross overriding royalty.
Bauer-19 To Potentially Add Reserves
The Operator, Beach Energy Ltd ("Beach") reported November 25, 2014, that the Bauer-19 development well intersected 8.7 metres of net oil pay in the target Namur Sandstone, 4.7 metres high to prognosis and also intersected a 4.0 metre gross interval of oil bearing McKinlay Member. Along with the recently drilled Bauer-15 well, Beach indicated that this has potentially increased reserves for the Bauer field. Bauer-19 has been cased and suspended as a future McKinlay and Namur oil producer.
The 8.7 metre Namur oil column is better than the pre-drill prediction of 4.0 metres, and Beach reported that this result may increase the estimated ultimate recovery of oil from the Bauer field.
Beach anticipates that production levels within PEL 91 will remain strong as a result of the combination of the current development program, new facilities such as CKS (Congony-Kalladeina-Sceale) that came on-line in October 2014, the facility expansion at Bauer moving from 50,000 barrels per day ("bpd") fluid handling to 75,000 bpd and the additional 3 Bauer exploration and appraisal wells planned over the next 30 days. In addition, the current 3D seismic program is expected to generate additional targets in current and new horizons over the next 6 months.
Stunsail-1 Flow Test Results
Beach also reported that the Stunsail-1 well flow tested at 6,768 barrels of oil per day ("bopd") from the Top Namur / McKinlay reservoir and 1,152 bopd from the Mid Namur reservoir for a combined total of 7,920 bopd. The test was conducted prior to the well being brought on-line and the wellhead pressure was 253 pounds per square inch "psi" through a fully open "64/64'' choke setting.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Drillsearch Energy Ltd.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
+1 604 685 6851
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, 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 licences 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.