Vancouver, British Columbia, April 5th, 2017.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an update on exploration activities on ex-PEL 91 in the Cooper Basin, Australia on which the Company has a 2.5% gross overriding royalty. This information was reported by Beach Energy Ltd ("Beach") in a news release dated April 5th, 2017, and reference should be made to Beach's news release and their website for their interpretation of results and plans to bring wells into production.
EXPLORATION AND APPRAISAL-WESTERN FLANK - EX PEL 106/EX PEL 91
As reported by the Company on March 1st, 2017, a four-well Permian exploration and appraisal campaign progressed on the ex-PEL 106 and 91 permit areas, with exploration success at Crockery-1 on ex-PEL 106 that tested stratigraphic traps on the western flank of the Patchawarra Trough, and targeted liquids-rich gas in the Patchawarra Formation. Crockery-1 encountered 7.2 meters of net pay across a 19 meter gross section and confirmed a southern extension of the Southwest Patchawarra gas fairway.
Beach completed its operated four-well Permian gas exploration and appraisal campaign, which concluded with a discovery at Mokami-1 in ex PEL 91. The well tested a western extension of the Southwest Patchawarra gas fairway and targeted liquids-rich sand packages in the Patchawarra Formation. Mokami-1 intersected 10.1 metres of net pay across a 19.2 meter gross section. Beach report a flow rate from one test of 8.6 MMscfd and liquids content of 93 bbl/MMscf.
Beach report that the exploration campaign proved successful, with three liquids-rich gas discoveries from four wells. Beach interpret that the Canunda-3 and Crockery-1 discoveries reinforce potential for additional stratigraphically trapped gas discoveries in the Southwest Patchawarra play fairway, and that the step-out Mokami-1 discovery is encouraging for future drilling in the frontier Permian Edge play fairway. Beach also report that planning of an expanded operated gas drilling program is underway, with more than twice the number of gas wells than drilled in FY17.
DEVELOPMENT-WESTERN FLANK-EX PEL 91
Beach report that a two-well oil development campaign commenced in the Pennington Field, located approximately 10 kilometres east of the Bauer Field, and that reservoir simulation modeling identified potential for improved field commerciality through in-fill drilling to accelerate production. The wells are targeting the Namur Sandstone as a primary objective and the McKinlay Member and Mid Namur Sandstone as secondary objectives.
Beach report that Pennington-5 was spudded on 26 March 2017 and reached total depth of 1,806 metres by month-end. The well intersected net oil pay of 2.2 metres in the Namur Sandstone and 1.8 metres in the McKinlay Member, and also encountered oil shows in the Birkhead Formation. Pennington-6, the second well of the campaign, spudded subsequent to month-end.
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 to keep current during exploration, development and production of all the licences 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 future development of the Company's project. 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 forward-looking statements. Such factors include, but are not limited to, the risk of fluctuations in the assumed prices of oil, the risk of changes in government legislation including the risk of obtaining necessary licences and permits,, taxation, controls, regulations and political or economic developments in Canada, 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, and assumed quantities or grades of reserves. Many of these uncertainties and contingencies may 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.