Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Oct. 26,
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 FY24
First Quarter Activities Report dated 25
October 2023.
Production
Highlights of the first quarter production from the Western
Flank as reported by Beach are as follows:
Production from the Western Flank was 1.0 MMboe, and was inline
with 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 743 kbbl was 5% below the prior
quarter, with natural field decline mostly offset by five new well
connections.
Gas and gas liquids production of 279 kboe was 13% above the
prior quarter due to optimization activities and well
performance.
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 price of oil was AUD$140/bbl, a 13%
increase over the prior quarter.
The average realized gas price was AUD$8.9 per GJ, a 6% decrease
over the prior quarter.
Beach report their average realized price across all products
was AUD$80.7/boe, a 2% increase over the prior quarter.
Q1 FY24 Drilling Activities
Beach commenced its FY24 oil exploration and appraisal campaign.
Six wells were drilled during the quarter and a further two wells
have been drilled after quarter-end.
The first three appraisal wells of the campaign (Growler 22 in
ex PEL 104, Kangaroo 4 in ex PEL 91 and Mustang 4 in ex PEL 111)
targeted the Birkhead reservoir in the out flank of each
field. All three wells had oil shows, however, due to a lack
of reservoir development and net pay, all were plugged and
abandoned. The other three wells, and the two subsequent
wells, were on ex PEL 111 and 92, both of which are not subject to
the Company's GOR.
A further four oil exploration wells and three oil appraisal
wells are planned in Beach's FY24 drilling campaign.
"With a 13% increase in the received oil price over
the last quarter, a 13% increase in gas and liquids production, and
the continuation of Beach's exploration and appraisal campaign, we
remain optimistic for the licences subject to our
GOR", 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 licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and
outstanding and approximately $2.1
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
November or early December 2023.
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.
© 2023 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.