Vancouver, British Columbia, December 7th, 2016.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide a further update on activities on ex-PEL 91 in the Cooper Basin, Australia that is subject to the Company's 2.5% gross overriding royalty. This information was reported by Beach Energy Ltd ("Beach") in a news release dated December 7th, 2016, and reference should be made to Beach's news release and their website for their interpretation of results and plans to bring the Osmanli-1 well into production.
As reported by Beach, the Osmanli-1 exploration well, located within the primary ex-PEL 91 oil fairway approximately four kilometres west of the Stunsail Field, was drilled to test a four-way dip closed anticlinal structure. The well targeted the Namur Sandstone, with the mid-Namur Sandstone, Birkhead and Poolowanna Formations providing secondary targets. Strong oil shows were intersected at two levels within the Birkhead Formation. A drill stem test was conducted over the lower interval of 1,689 - 1,697 metres for a six-hour flow period. The test recovered 52 degree API oil at a calculated rate of 50 barrels of oil per day, plus 50 barrels of water per day. A second drill stem test was conducted over the upper interval of 1,651 - 1,664 metres for a six-hour flow period. The test recovered 47 degree API oil at a calculated rate of 55 barrels of oil per day, plus 30 barrels of water per day. Beach report that the Osmanli-1 well results indicate a potential western extension of the Birkhead Formation play area, providing encouragement for the Kangaroo-1 follow-up exploration well (to be drilled in Beach's Q3 FY2017).
Beach has achieved three oil discoveries from the first three exploration wells of its FY2017 operated drilling campaign on ex-PEL 91. The discovery of oil in the Birkhead Formation at Kangaroo-1 (as reported in a news release by the Company on October 27th, 2016), in the Poolowanna Formation at September-1 (as reported in a news release dated November 1st, 2016), and in the Birkhead Formation at Osmanli-1, has further proven the additional play potential within ex-PEL 91.
The Company is unable to report on the potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd in order to keep current during the exploration and development of all the licenses subject to the Company's gross overriding royalty.
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.