News Releases are added to our web site immediately upon release to the general public. If you would like to receive news releases via e-mail please click here.

News Releases


Jan 28, 2021

NEWPORT REPORTS ON BEACH'S SECOND QUARTER 2021 PRODUCTION. CONTINUED DRILLING SUCCESS ON BAUER FIELD IN EX-PEL 91. EIGHT NEW WELLS TO COME ONLINE.

Vancouver, British Columbia, January 26th, 2021. Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an update on production and drilling activities on licences in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty ("GOR"). This information was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its FY21 Second Quarter Activities Report for the period ended 31st December, 2020 ("Beach Quarter Report"). 

PRODUCTION

Highlights of the second quarter production from the Cooper Basin and Western Flank reported by Beach were;

Production from the Western Flank was 2.3MMboe, down 4% on the prior quarter, with higher gas and gas liquids offsetting lower oil production. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91, 106,107 and PRL 26, as well as licenses ex-PEL's 92, 104 and 111, over which the Company does not have a GOR). 

Western Flank gas and gas liquids was 586 kboe, up 15% on the previous quarter. 

Gross average daily oil production from ex-PEL 91 was 16.9kbbl/day, down 10% on the previous quarter.

Beach report their average realized price across all products was AUD$53.4/boe, a 3% increase over the prior quarter. 

The average realized price of oil was AUD$65.3/bbl, up 1% on the previous quarter.

A total of eight new wells were brought online during the quarter, with seven horizontal producers and one vertical producer.

Four vertical oil producers will be brought online in Beach's Q3 FY21.

A further four horizontal wells will also be brought online in Beach's Q3 FY21.

Ex-PEL 91 continues to make a major contribution to Beach's operated oil production.

DRILLING

Highlights of the second quarter drilling by Beach on ex-PEL 91 were;

Beach achieved a 100% success rate on ex-PEL 91 with the Bauer 67 and 68, Chiton 12, Kalladeina 12, 13 and 14, and Balgowan 5 and 6 wells, all being cased and suspended as future producers.

Also on ex-PEL 91, Bauer 69 is drilling ahead at quarter-end.

These very positive drilling results follow Beach's successful drilling and development results in the Bauer Field as reported in the Company News release dated October 26th, 2020.

GUIDANCE

In light of the turmoil in global oil markets in 2020 as a result of the oil price war between Saudi Arabia and Russia, as well by a drastic decline in demand caused by the effects of the COVID-19 pandemic, the Company strongly advises shareholders to access the Beach Quarter Report and previous Company News Releases that demonstrate the strong operational and financial position of Beach (the operator of the GOR licences).With Beach's reported production and continued exploration success (particularly on the Bauer Field on ex-PEL 91), Beach has continued to achieve reserve replacement and positive cash flow throughout a period of high disruption for the energy sector.

As noted in previous Company news releases, Beach's oil products command a premium price to the Brent oil price. Shareholders and investors are also reminded that Beach's Quarterly Reports do not coincide with the Company's quarterly royalty payment periods. For example, the Beach Quarterly Report referenced in this news release covers production and drilling for the three month period October-December 2020, whereas the current quarterly royalty payment period for Newport covers sales/production for the three month period November 2020-January 2021. Accordingly, the next royalty payment will be based on oil prices for this same period. This is particularly relevant for next royalty payment as oil prices increased significantly in January 2021 such that the average realized oil price by Beach on which the royalty payment is based is expected be higher than stated for their Q2 FY21.

Several industry analysts are of the opinion that even without any increased demand from the aviation sector in 2021, oil demand will increase through 2021.

"With Beach's successful drill programs and several additional wells being brought online on ex-PEL 91, the Company is well positioned to benefit from an increase in demand and related oil price rises in 2021, and our shareholders should benefit from both dividends and an attractive valuation, as Newport has a regular revenue stream, no direct exploration risk, no direct operational risk, and no debt", stated Ian Rozier, President and CEO of Newport.

Newport has no control over operating decisions by Beach. Accordingly, this prevents the Company from commenting on Beach's operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach.

The Company receives its GOR from Beach which is not a reporting issuer in Canada, therefore 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.

For further information contact:
Ian Rozier, M.Sc, P.Eng
Director and Chief Executive Officer
+1 604 685 6851

www.newport-exploration.com
www.beachenergy.com.au
www.santos.com

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 may pertain to assumptions regarding Beach's drilling plans, future dividends, the price of oil and fluctuations in currency markets (specifically the Australian dollar). Forward-looking statements are based upon a number of estimates and assumptions that, which are 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.

© 2020 Newport Exploration Ltd.