Vancouver, British Columbia, February 17th, 2021. Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide additional Guidance as provided by Beach Energy Ltd ("Beach") for future production targets, expenditures and Life of Assets on the Western Flank of the Cooper Basin, Australia. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91, 106, 107 and PRL 26, as well as ex-PEL's 92, 104 and 111, over which the Company does not have a GOR).
Slightly lower oil production from the Western Flank was reported in a Company News Release dated January 28th, 2021. The Company anticipates that this will be offset by higher oil prices in the current quarter.
In a News Release dated January 28th, 2021, the Company made reference to Beach's FY21 Second Quarter Activities Report (the "Report") for the period ended 31st December, 2020. Highlights of the Report were:
A total of eight new wells were brought online during that quarter, with seven horizontal producers and one vertical producer.
Beach reported that four vertical oil producers were to be brought online in their Q3 FY21.
Beach reported that a further four horizontal wells were also to be brought online in their Q3 FY21.
In their Half Year Results reported on February 15th, 2021, and in their Management Call, Beach provided further guidance relevant to the Company's GOR licences. Highlights are:
Beach report that well interference from McKinlay drilling on the existing Namur and McKinlay producers has resulted in faster than estimated decline rates. Beach have not made any adjustments to reserves as a result of this.
The eight wells referenced in the Report are soon to be connected.
Beach have a further six horizontal wells planned for H2 FY21 in the Bauer Field.
Forecast Capital Expenditure for the Western Flank is AUD$800M-AUD$1B
Beach are targeting production of 20,000 boed and are currently at 18,000boed.
Beach plan to maintain production rates at between 15 and 20kboed.
Beach estimate that Life of Assets on the Western Flank is greater than 15 years.
"With Beach continuing to replace reserves, bringing several new wells online, their targeted production volumes, budgeted expenditures and particularly their estimated Life of Assets, all provide very positive guidance for Newport and our shareholders.", stated Ian Rozier President and CEO of Newport.
Newport has no control over operating decisions by Beach. The Company recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos Ltd ("Santos") in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. Beach's results and performance are also subject to regular research reports by J.P. Morgan (Asia Pacific Equity Research) and by RBC Capital Markets.