VANCOUVER, BC, July 21,
2022 /CNW/ - Newport Exploration Ltd ("Newport" or
"the Company") provides an update for 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 FY22
Fourth Quarter Activities Report dated 20
July 2022.
Production & Delays
Highlights of the fourth quarter production from the Western
Flank in the Beach report are as follows:
Due to an 11-day shutdown of the Middleton Gas Plant (due to
maintenance) and natural field decline, Western Flank gas and gas
liquids production was 315 kboe, down 26% from the prior
quarter.
Production from the Western Flank was 1.1 MMboe, down 12% on the
prior quarter (Note: Western Flank includes the Company's GOR
licences ex PEL's 91, 106, 107 and PRL 26, as well as licences ex
PEL's 92, 104 and 111, over which the Company does not have a
GOR).
Western Flank oil production was 750 kbbl, down 4% on the prior
quarter. The increased inventory of well connections and
workover activities caused by rain delays in Beach's Q3 FY22 was
partially addressed. The workover rig is now operating on a
24/7 schedule (previously a 12-hour schedule in Q3 FY22) however,
unplanned maintenance and planned abandonment activities were
required which saw a delay in some well connections and other
activities. In Beach's FY22, a decline in the daily oil
production rate of 32% was recorded, compared with original
guidance of a 35-45% decline.
The Company will update shareholders as soon as it is in receipt
of any specific production forecasts for the GOR licences.
Realized Gas & Oil
Prices
The average realized gas price was AUD$8.7 per GJ, a 4% increase
on the prior quarter.
The average realized price of oil was AUD$167.2/bbl, a 5%
decrease over the prior quarter.
Beach report their average realized price across all products
was AUD$85.6/boe, a 2% decrease over the prior quarter.
Q4 FY22 Drilling
Activities
A two-well pilot horizontal drilling campaign targeting the
Birkhead reservoir commenced during the quarter. The campaign
will test production performance from fracture stimulated
horizontal wells in the Stunsail and Kangaroo fields, both on ex
PEL 91. The first well of the campaign, Stunsail 8, drilled a
1,577 metre lateral section and was cased and suspended as a future
producer. The well is awaiting fracture stimulation in
Beach's Q1 FY23.
Beach completed its 11-well Namur/McKinlay (reduced to 10-well) oil
exploration campaign during the quarter with one additional well
drilled on ex PEL 91 (McLaren 1), that was plugged and
abandoned.
"The delays caused by unplanned maintenance activities are
unfortunate, but the workover rig is now operating on a 24/7
schedule and should offset natural field declines and lead to an
increase in production." stated Ian Rozier, President & CEO of Newport.
About Newport
The Company receives its GOR from Beach which is not a reporting
issuer in Canada. Therefore,
Newport is not able to confirm if
disclosure satisfies the requirements of Canadian Securities
legislation.
Newport has no control over
operating decisions made by Beach and is not privy to exploration
or production data derived by Beach during operations. Accordingly,
this prevents the Company from commenting on operating plans going
forward.
As always, the Company recommends that shareholders and
potential investors access material information relevant to the
Company as released independently by Beach and Santos Ltd in order
to keep current during exploration, development and production of
all the licenses subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and
outstanding and approximately $3.3
million in the treasury (comprised of cash, cash equivalents
and short-term investments) and no debt.
Details of the next GOR payment will be reported at the end of
August or early September 2022.
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.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.