Vancouver, British Columbia, February 3rd, 2016.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to report on the success of the Middleton-1 Well on Ex-PEL 106 and on the Bauer-25 Well on Ex-PEL 91 as reported by Beach Energy Ltd ("Beach") on February 3rd
Ex-PEL 106 (Beach 50% and operator Drillsearch Energy Ltd ("Drillsearch") 60%) and Ex-PEL 91 (Beach 40% and operator, Drillsearch 60%) are located in the Cooper Basin, Australia and are both subject to the Company's 2.5% gross overriding royalty.
Beach reported that a two-well exploration program commenced on the western edge of the Patchawarra Trough, which aims to add reserves in the liquids rich gas play area. The first well of the campaign, Middleton East-1, is located approximately 1.5 km east of the producing Middleton-1 well and targeted the Patchawarra Formation, with the Tirrawarra Sandstone providing a secondary target. Prospects were defined on the Irus 3D seismic survey, acquired in 2012 and reprocessed in 2013. Middleton East-1 was cased and suspended following initial interpretation of wireline petrophysical and pressure data, which indicated six gas zones and net pay of 9.3m, including 4.9m intersected within the primary target zone. Extended production testing is expected to be undertaken at a later date to better assess flow rates and resource base.
Beach also reported that a two-well oil appraisal program was completed in the Bauer Field to test southern and northern extensions of the field. Bauer-25, the second well of the campaign, is located on the northern flank of the Bauer Field and is the northern-most well in the field. The northern flank is a low relief area extending to the Bauer North-1 discovery well, approximately 1.3 km northeast of Bauer-25. The well targeted the McKinlay Member and Namur Sandstone reservoirs, with the Birkhead Formation providing a secondary target. The well was cased and suspended as a future producer following intersection of a two metre net oil column in the Namur Sandstone and a 3.5 metre gross oil bearing interval in the overlaying McKinlay Member. Further evaluation of results will be undertaken to assess potential for follow-up drilling.
The Company reports that it has discontinued legal proceedings against Beach and Great Artesian Oil and Gas Pty Ltd as previously announced on December 9th
, 2015. The Company received its past due royalties with interest as announced on December 14th
, 2015 and therefore feels that the proceedings are no longer warranted.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Drillsearch, Beach and Santos Ltd in order to keep current during the exploration and development of the licences subject to the Company's 2.5% gross overriding royalty.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
+1 604 685 6851
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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.