This information was reported by
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
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
Newport has no control over operating decisions by Beach and Beach is not subject to compliance with NI 51-102- Continuous Disclosure Obligations in
The Company receives its gross overriding royalty from Beach, which is not a reporting issuer in
Contact:
Tel: +1 604 685 6851
Email: info@newport-exploration.com
Web: www.newport-exploration.com
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
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.
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