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May 07, 2015
UPDATE ON DEVELOPMENTS IN COOPER BASIN, AUSTRALIA
Vancouver, British Columbia, May 7th, 2015. Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an update on developments on its interests in the Cooper Basin, Australia which are subject to the Company's 2.5% gross overriding royalty, as reported by Beach Energy Ltd ("Beach") in their April 2015 Monthly Drilling Report and at a recent Macquarie Australia conference presentation where Beach provided updates on their exploration progress, production and program planning.
Pennington 4 well in PRL 163 (Ex PEL 91)
Pennington-4 located in PRL 163 (Beach 40% and operator, Drillsearch 60%), is a standalone appraisal well drilled to assess upside potential of the Namur and Mid Namur reservoirs in the Pennington Field, with assessment of the lower Birkhead Formation a secondary objective. The well was drilled to appraise and develop the southern part of the oil bearing anticlinal structure, as intersected by Pennington‐1 and Pennington‐2. The well was cased and suspended as a future producer following the intersection of a 2.5 metre Namur oil column, and a 4.2 metre gross oil bearing interval in the overlaying McKinlay Member.
Ex PEL 91
• Q3 YTD gross production of 3.0 MMbbl (10,925 bopd)
• Initial Bauer facility expansion to 75,000 bfpd is complete with planning of next expansion underway to 100,000 bfpd.
• The Stunsail, Balgowan and Pennington fields are expected to be on-line in Beach's third quarter of 2015 ("Q3 2015")
• Processing of Solidus 3D seismic survey over 492 km2 is underway
• Bauer development wells, facility expansions and new fields coming on-line are expected to sustain pipeline capacity.
Summary of Pad Drilling Results
• Results exceeded Beach pre-drill estimates
• Six of eight wells high to prognosis and the field size continues to increase
• Strong flow rates were reported from short-term tests
• All the first pad wells are now online (Bauer-16 to -19)
• Tie-in of Bauer-20 to -23 is expected in Q3 2015
• Material increase in EUR expected by Beach
Update on Infrastructure Upgrades
• New pipelines from Stunsail and Pennington facilities are feeding into a new hub which will be a gateway for transportation of oil through a single pipeline to the Bauer facility.
• CKS brought online in October 2014
• Balgowan Field will tie-in to the Stunsail facility (expected completion early Q3 2015)
• Pennington facility planning is underway with wells expected to be online late Q3 2015 with two to four additional wells required to develop the field
• Drilling in 2015 and infrastructure upgrades are expected to underpin current production levels through the second half of 2015
Ex PEL 106
• Q3 YTD gross production of 0.5 MMboe (1,880 boepd)
• Gas sales agreement with SACB JV valid to March 2016
• Canunda-2 appraisal well cased and suspended for future production and expected online in FY16, subject to joint venture approval
• Ralgnal-1 exploration well cased and suspended following a six metre net pay intersection in Patchawarra Formation
• Compression at Middleton under consideration to accelerate production
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Drillsearch Energy Limited in order to keep current during an active period in the exploration and development of these licenses.
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.