Vancouver, British Columbia, August 2nd, 2017.
Newport Exploration Ltd ("Newport" or "the Company") is able to provide an update on drilling 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 Monthly Drilling Report dated August 1st, 2017, and reference should be made to Beach's Monthly Report and their website for their interpretation of results and plans to bring wells into production.
As of August 1st, 2017, Beach report that Bauer-26 was drilled as a horizontal oil development well comprising a lateral section of approximately 400 metres. The well targeted the McKinlay Member, a thin sandstone overlaying the Namur Sandstone, with accumulations covering areas larger than the Namur fields. The McKinlay Member is a proven oil reservoir, however has not been subjected to focused development. The formation is considered suitable for geo-steered horizontal drilling, with potential for high daily production rates. Bauer-26, the first Western Flank horizontal well, was landed successfully within the McKinlay Member and intersected net oil pay of approximately 350 metres. The well was completed for production and Beach expect it to be on free flow production in Q1 FY 2018, with artificial lift scheduled for installation in Q2 FY 2018. Well results and other studies currently underway will set the scope and design for development of the McKinlay reservoir in the second half of FY 2018 and FY 2019.
Beach also reported that the two-well oil appraisal step-out campaign was completed in the Chiton Field, located approximately two kilometres south of the Bauer Field, where there has been limited appraisal drilling to date. The second well of the campaign, Chiton-5, was plugged and abandoned due to lack of commercial pay. Both wells were step-out prospects which helped define field boundaries. Results will assist with design of the final development plan for the Chiton Field.
The Company 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
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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 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.
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