Vancouver, British Columbia, July 24, 2019.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an update on production and drilling activities on the permits and licences in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty ("GOR"). This information was released by Beach Energy Ltd ("Beach") (ASX: BPT) in their Quarterly Report for the period ended 30 June 2019, dated 24th July 2019.
Beach report that their Q4 FY2019 production of 7.0 MMboe was highlighted by a further 5% increase in Western Flank oil output.
Western Flank gas production was up 32% on the quarter after commissioning of the Middleton liquids handling expansion.
After success at the Bauer and Pennington fields earlier in the year, Beach expanded its horizontal drilling program to the Kalladeina and Congony fields in its fourth quarter, with Beach drilling its longest lateral section to date at Kalladeina-4.
The successful application of horizontal drilling has helped lift Western Flank quarterly oil output by a further 5% over last quarter's record production level, while the recent successful completion of a five-well Bauer oil development campaign, following the December quarter appraisal campaign, confirmed an easterly extension to the structure.
THE BAUER FIELD
The five vertical development wells, Bauer-33, -34, -35, -36 and -37 have all been cased and suspended as future producers. By quarter end, two of the five wells, Bauer-33 and -34, were on free flow production recording initial rates of 700 bopd and 540 bopd (first 30 days average).
THE KALLADEINA FIELD
Kalladeina-4 drilled a 1,438 metre lateral segment, the longest lateral segment drilled by Beach to date, and encountered 84% net reservoir. The well was cased and suspended as a future producer. The well is free flowing as of early July and awaiting artificial lift installation and a facilities upgrade for the field to increase oil export capability.
THE COLGONY FIELD
At quarter-end, a further horizontal oil development well Congony-3, also located in the CongonyKalladeina-Sceale field complex was drilling ahead. Subsequent to quarter end, Congony-3 reached TD intersecting 73 per cent net reservoir in the 1,229 metre lateral and is awaiting connection.
THE LOWRY FIELD
The seven-well gas drilling campaign continued on the Lowry and Udacha South fields. Appraisal wells Lowry-2, -4 and -5 followed the success of Lowry-3 in the March quarter, all being cased and suspended as future producers and confirming an extension of the Lowry Field. Lowry-3 and -4 are expected to be the first wells brought online, currently expected early in Beach's FY2020. The Lowry Field is a high liquids content gas field, with approximately twice the condensate yield of Beach's liquids-rich, Middleton and Brownlow Western Flank gas fields.
THE UDACHA SOUTH FIELD
Beach made a gas discovery on the Udacha South Field with Udacha South-1 and -2 exploration wells cased and suspended as future producers, with Udacha South-3 plugged and abandoned.
Quarterly capacity expansion at our Middleton Facility saw Western Flank gas production rise 32%.
Reference should be made to the Beach and Santos Ltd. websites for their interpretation of the results and plans to bring wells into production.
The Company receives its GOR from Beach, who is not a reporting issuer in Canada, and therefore, not required to comply with the requirements of NI 51-101 - Standards of Disclosure for Oil and Gas Activities hence, Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101 - Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.
The Company is unable to forecast potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos to keep current during exploration, development and production guidance for all permits 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 is intended to provide readers with a reasonable basis for assessing the future performance of the Company. The words "believe", "should", "could", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward looking statements are statements and information regarding possible developments that are based on assumptions about future economic conditions and courses of action. Forward looking statements in this release include, but are not limited to, statements regarding future plans for wells to be brought online, production rates and costs, and Middleton facility processing. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to business, economic and competitive uncertainties and contingencies. 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. 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.
(c) 2019 Newport Exploration Ltd.