Post by
HHAPPY on Oct 26, 2020 7:01pm
I HOPE I AM WRONG !!
NWX management seems to be very concerned re Beach latest oil finds. They paint the picture of covid effect on oil pricing/ profits. Details Beach recent major finds that are NOT subject to NWX royalty. They inply [perhaps for good reason] that Beaxh may shift oil collection to these new area rather than fomJv with NWX .I presume that is beach’s right.
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 Quarter Report and previous Company News Releases that demonstrate 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
Highlights of the first quarter production from the Cooper Basin and Western Flank reported by Beach were;
Beach report production from the Western Flank was 2.4MMboe, down 6% 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).
Gross average daily oil production from ex-PEL 91 was 18.8kbbl/day.
Beach report average realized price across all products was AUD$51.8/boe, a 16% increase over the prior quarter.
The average realized price of oil was up 38% to AUD$64.6/bbl.
A total of 9 new wells were brought on-line with 8 horizontal and 1 vertical producers.At quarter-end Beach has 6 oil wells cased and completed (4 horizontal and 2 vertical) plus 3 ESP projects scheduled to come on-line in Beach's Q2 FY2021.
These results follow Beach's successful drilling and development results in the Bauer Field as reported in the Company News release dated July 22nd, 2020.
Ex-PEL 91 continues to make a major contribution to Beach's operated oil productioDRILLING
Highlights of the first quarter drilling by Beach on ex-PEL 91 were;
Seven horizontal oil development wells were successfully drilled on the Bauer Field. Bauer Wells 61, 62, 63, 64, 65 and 66 have been cased and suspended as future producers. This represents a 100% success rate for oil exploration wells.
One well, Bauer 67, is currently drilling ahead.
Completion of Bauer 63 marked the end of the 16 well horizontal well campaign targeting the McKinlay Formation on the Western Flank of the Cooper Basin.
Spudding of the first horizontal Birkhead oil well in the Bauer Field took place prior to quarter –end.
GUIDANCE
With Beach's reported production and continued exploration success (particularly on the Bauer Field on ex-PEL 91), Beach continues to achieve reserve replacement and positive cash flow during a period of high disruption for the energy sector.
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. 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.