WESTERN FLANK OIL PRODUCTION UP 21%, EIGHT WELLS BROUGHT ONLINE, SUCCESSFUL DRILLING ON EX PEL 91
Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, July 27, 2023 /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 FY23 Fourth Quarter Activities Report dated 26 July 2023.
Highlights of the fourth quarter production from the Western Flank as reported by Beach are as follows:
Production from the Western Flank was 1.0 MMboe, up 14% 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 of 779 kbbl was 21% above the prior quarter due to the connection of seven new horizontal wells and one new vertical well, with average initial production rates in line with pre-drill estimates. One horizontal well was connected immediately following quarter-end and two further horizontal wells are awaiting connection.
Gas and gas liquids production of 233 kboe was 3% below the prior quarter.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
The average realized price of oil was AUD$124/bbl, an 8% decrease over the prior quarter.
The average realized gas price was AUD$9.5 per GJ, a 7% increase over the prior quarter.
Beach report their average realized price across all products was AUD$79.4/boe, a 3% increase over the prior quarter.
The seven-well, ex PEL 91, oil development campaign targeting the McKinlay Member and Namur Sandstone in the Bauer and Arno field was completed, with three horizontal wells and one vertical well cased and suspended as future producers.
Bauer 74 drilled a 1,157 metre lateral section and intersected 321 metres of net oil pay.
Bauer 75 drilled an 835 metre lateral section and intersected 120 metres of net oil pay.
Arno 5 drilled a 1,060 metre lateral section and intersected 241 metres of net oil pay.
Bauer North 4, the only vertical well of the campaign, intersected 2.6 metres of net oil pay.
Horizontal drilling was undertaken in the Balgowan field as follow-up to past oil development campaigns. Balgowan 8 drilled a lateral section of 1,169 metres and was cased and suspended as a future producer following an intersection of 315 metres of net oil pay.
The Chiton Southeast 1 oil exploration well targeted the Namur Sandstone and was plugged and abandoned.
Beach's FY23 Western Flank drilling program comprised of 24 wells and provided encouraging results with several follow-up opportunities identified. The campaign included fifteen successful horizontal oil development wells across eight fields, four successful appraisal wells in the Martlet field (ex PEL 104) and one exploration success at Rocky 1 (ex PEL 91). Beach report that less development drilling will be undertaken in FY24 with a greater focus on exploration and appraisal.
"With oil production up 21% and the successful drilling results from the Bauer and Arno fields, and with the recent increase in the oil price, we are confident about the future production and associated royalties from ex PEL 91", stated Ian Rozier, President & CEO of 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 licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $2.7 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 2023.
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.
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.
© 2023 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.
Ian Rozier, M.Sc., P. Eng (Non-Practising), Director and Chief Executive Officer, +1 604 685 6851, [email protected]
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