Trading Symbol: NWX (TSX-V)
VANCOUVER, April 22, 2020 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to provide an update on
production and drilling activities, on licenses 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 ASX Announcement, FY2020 Third Quarter Activities Report
dated 22nd April, 2020.
In light of the recent turmoil in global oil markets as a result
of a drastic decline in demand caused by the effects of COVID-19,
the Company strongly advises shareholders to access the Beach Third
Quarter Activities Report that demonstrates the position of Beach,
the operator of the GOR licences, going forward, which is in
drastic contrast to many oil producers with higher operating costs
and punishing debt loads.
PRODUCTION
Beach report Western Flank quarterly production was 2.6 MMboe,
10% higher than the prior quarter driven by strong oil
production.
Beach report gross overage daily oil production from the Western
Flank was 25kbbl, up 14% on the prior quarter. (NOTE: Western Flank
includes the Company's GOR licences ex PEL's 91, 106, and 107, as
well as licenses ex PEL's 92, 104 and 111, over which the Company
does not have a GOR).
Despite the unprecedented global oil environment as a result of
COVID-19 and the dramatic oil price volatility, Beach report that
oil production from ex-PEL 91 increased 19% to 1,849 kboe.
Ex-PEL 91 made a major contribution to the best ever quarter for
Beach operated oil production.
A total of 8 new oil wells were brought online in the quarter,
comprising six horizontal producers and two vertical producers.
Seven artificial lift projects were completed in the quarter
which included an ESP (Electrical Submersible Pump) installation at
bauer-39, Beach's longest McKinlay horizontal development well.
Bauer-39 averaged approximately 2,900bbl/d on ESP through
March.
At the end of Beach's third quarter four key oil wells are
awaiting connection.
Beach report's Western Flank gas and liquids production was 491
kboe, down 10% on the prior quarter.
DRILLING
In the Western Flank, seven horizontal oil development wells
were successfully drilled across the Bauer, Congony, Chiton and
Kalladeina fields in ex-PEL 91, including Chiton-9 which is Beach's
first horizontal well drilled into the highly deliverable
Namur formation.
Appraisal drilling was highlighted by a 100% success rate in the
three-well Balgowan oil appraisal campaign, with two wells cased
and suspended as McKinlay producers and the third as a Birkhead
producer.
GUIDANCE
As stated previously by the Company (News Release dated
March 30th, 2020), it is
material information for shareholders of Newport that Beach report that revenues from
their gas sales cover their group operating and stay-in-business
costs and that their reported break-even oil price is less than
US$0/bbl. As also reported in the
same Company News Release, Beach report that their crude sells at a
material premium to Brent.
Newport has no control over
operating decisions by Beach and Beach is not subject to compliance
with NI 51-102- Continuous Disclosure Obligations in Canada. Accordingly, this prevents the Company
from commenting on Beach's current financial status and/or
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. This recommendation is particularly
relevant with regard to the current uncertainty in the global oil
markets.
The Company receives its gross overriding royalty 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.
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, 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.
SOURCE Newport Exploration Ltd.