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Mar 02, 2015
UPDATE ON OIL AND GAS INTERESTS IN AUSTRALIA
Vancouver, British Columbia, March 2, 2015. Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide a further update on developments on its interests in the Cooper Basin, Australia which are subject to the Company's 2.5% gross overriding royalty.
PRLs 151 to 172 (formerly PEL 91)
In its Interim Report released February 23, 2015 Beach Energy Ltd ("Beach") reported that development drilling primarily focused on the highly productive Namur Sandstone reservoir and overlaying McKinlay Member within the Bauer Field. A six-well development campaign was completed, comprising four deviated wells drilled from a single pad location and two vertical wells.
The two vertical wells, Bauer-14 and -15 coming online toward the end of the second quarter and the Bauer-16 to -19 pad wells are expected online in Q3 FY15.
A second four-well pad drilling campaign, located in the north of the Bauer Field and targeting the Namur Sandstone and Birkhead Formation, has been approved by the Joint Venture ("the JV") between Beach and Drillsearch Energy Limited and is expected to be undertaken in Q3 FY15.
A standalone development well, Hanson-2, was drilled approximately 450 metres to the east of the currently producing Hanson-1 well. The well was cased and suspended as a future Namur Sandstone and McKinlay Member oil producer.
The JV was granted Petroleum Retention Licenses ("PRLs") 151 to 172 over the former PEL 91 permit, which secures tenure over these licences for up to 15 years.
PRLs 151 to 172 (formerly PEL 91)
Beach reported that new oil discoveries at Balgowan-1 and Burners-1 were cased and suspended as future Namur Sandstone and McKinlay Member producers. These discoveries confirmed the extension of the oil fairway to the north-east of recent discoveries in PEL 91 and brought a new focus on other prospects in this northern area of the permit. Balgowan-1 resulted in the addition of gross 1P, 2P and 3P oil reserves of 87 kbbl, 345 kbbl and 1,530 kbbl, respectively, and is expected online by the end of FY15. Burners-1 was cased and suspended and will be considered for tie-in to facilities in FY16.
Beach further reported that the acquisition of the solidus 3D seismic survey was completed over 492 km2 prospective acreage to the north of the Bauer Field. Processing and interpretation is expected to be completed by the end of Q2 FY16. Results will help define Western Flank exploration and appraisal drilling targets.
PRLs 129 and 130 (formerly PEL 106) Exploration and Appraisal
Beach also reported that four wells of a five-well exploration and appraisal campaign were drilled, targeting gas and gas liquids in the Patchawarra Formation and Tirrawarra Sandstone. The first well in the program, Canunda-2, was cased and suspended as a future producer while the remaining wells were plugged and abandoned.
The JV was granted PRLs 129 and 130 over the former PEL 106 permit, which secures tenure over these licences for up to 15 years.
Newport currently has 79,279,874 million shares issued and outstanding with approximately CAD $21,136,042 in the treasury following the receipt of the most recent royalty payment of AUD $1,791,809.
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.