100% SUCCESS RATE HORIZONTAL OIL DEVELOPMENT WELL DRILLING Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Feb. 15, 2022 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide information provided by Beach Energy Ltd ("Beach") regarding assets on the Western Flank of the Cooper Basin, Australia, as reported on February 14th, 2022 in their FY22 Half Year Results.
In a News Release dated January 26th, 2022, the Company made reference to Beach's FY22 Second Quarter Activities Report for the period ended December 31st, 2022.
Production
Beach's First Half FY22 production from the Western Flank was 2.9MMboe.
Beach report that in its First Half FY22 Western Flank oil production outperformed previously disclosed decline rates. (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).
Realized Oil and Gas Prices
As reported in the Company's News Release dated January 26th, 2022, the realized oil price for Beach's quarter ended December 31st, 2021, was AUD117.1/bbl.
Newport's second quarter ended January 31st, 2022 and therefore, based on the continued increase in oil prices through January, the Company anticipates a higher realized oil price for its quarter and this should be reflected in the next GOR payment to the Company.
Drilling
Beach report a 100% success rate at four horizontal oil development wells, with a fifth well drilling ahead.
Two gas discoveries were reported from the gas exploration program on ex PEL 106, being the Rosebay 1 and Lowry South 1 wells.
Future Activities
Beach propose to 'tie-in' the Rosebay 1 gas well to the Middleton gas processing facility in their Second Half FY22.
Beach report that in the Second Half FY22 they will recommence the Western Flank Oil exploration campaign with 11 oil exploration wells, with additional wells planned after assessment of results.
"We are pleased with Beach's recent success on both oil and gas drilling, and look forward to their future oil drilling as this should increase reserves and continue to reduce previously anticipated field decline rates", 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 $4.0 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 February or early March 2022.