Newport Exploration Ltd. Reports on Beach's Second Quarter 2021 Production and Continued Drilling Success on Bauer Field in ex-PEL 91; Eight New Wells to Come Online
January 28, 2021 at 01:34 pm EST
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Newport Exploration Ltd. provided an update on production and drilling activities on licences in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty ("GOR"). The highlights of the second quarter production from the Cooper Basin and Western Flank reported by Beach were: Production from the Western Flank was 2.3MMboe, down 4% on the prior quarter, with higher gas and gas liquids offsetting lower oil production. (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); Western Flank gas and gas liquids was 586 kboe, up 15% on the previous quarter; Gross average daily oil production from ex-PEL 91 was 16.9kbbl/day, down 10% on the previous quarter; Beach report their average realized price across all products was AUD 53.4/boe, a 3% increase over the prior quarter; The average realized price of oil was AUD 65.3/bbl, up 1% on the previous quarter; A total of eight new wells were brought online during the quarter, with seven horizontal producers and one vertical producer; Four vertical oil producers will be brought online in Beach's Third Quarter FY21; A further four horizontal wells will also be brought online in Beach's Third Quarter FY21; and Ex-PEL 91 continues to make a major contribution to Beach's operated oil production. Highlights of the second quarter drilling by Beach on ex-PEL 91 were: Beach achieved a 100% success rate on ex-PEL 91 with the Bauer 67 and 68, Chiton 12, Kalladeina 12, 13 and 14, and Balgowan 5 and 6 wells, all being cased and suspended as future producers; also on ex-PEL 91, Bauer 69 is drilling ahead at quarter-end; these very positive drilling results follow Beach's successful drilling and development results in the Bauer Field as reported in the Company News release dated October 26th, 2020. In light of the turmoil in global oil markets in 2020 as a result of the oil price war between Saudi Arabia and Russia, as well by a drastic decline in demand caused by the effects of the COVID-19 pandemic, the Company strongly advises shareholders to access the Beach Quarter Report and previous Company News Releases that demonstrate the strong operational and financial position of Beach (the operator of the GOR licences).With Beach's reported production and continued exploration success (particularly on the Bauer Field on ex-PEL 91), Beach has continued to achieve reserve replacement and positive cash flow throughout a period of high disruption for the energy sector.
Newport Exploration Ltd. is a Canada-based company, which has royalty interests in producing oil and gas permits in the Cooper Basin, Australia, and a mining project in British Columbia, Canada. The Company holds a 2.5% gross overriding royalty (GOR) on several permits in Australia. These include permits being operated and explored by Beach Energy Ltd. (Beach) and Santos Ltd. (Santos), both Australian oil and gas producers. The Cooper Basin is an onshore oil and gas development area. The Companyâs Chu Chua is located approximately 30 kilometers (km) north of Kamloops, British Columbia, with access and infrastructure. The deposit is a Cyprus-type volcanogenic massive sulfide body hosted in two steeply dipping lenses of massive pyrite-chalcopyrite and magnetite up to 40 meters (m) thick, with a strike length of 400 m and a known depth of 250 m.
Newport Exploration Ltd. Reports on Beach's Second Quarter 2021 Production and Continued Drilling Success on Bauer Field in ex-PEL 91; Eight New Wells to Come Online