Trading Symbol: NWX (TSX-V)
Production
Highlights of the second quarter production from the Western Flank in the Beach report are as follows:
Production from the Western Flank was 1.3 MMboe, down 18% on the prior quarter, with lower oil, gas and associated liquids 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 oil production was 0.9 MMboe, down 13% on the prior quarter due to natural field decline.
Higher than anticipated production rates and the connections of five development wells in the second and third quarter (three wells in ex PEL 91 which Beach expect to connect in its Q3), are anticipated to further reduce decline rates in Beach's second half of fiscal 2022.
Western Flank gas and gas liquids production was 415 kboe, down 28% on the prior quarter, primarily due to planned maintenance work at the
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Realized Oil & Gas Prices
The average realized price of oil was AUD$117.1/bbl, up 6% on the prior quarter.
This realized oil price is for Beach's quarter ended
The realized gas price was AUD$7.6 per GJ, a 2% increase on the prior quarter.
Beach report their average realized price across all products was AUD$72.6/boe, an 8% increase over the prior quarter.
Q2 FY22 Drilling Activities
On ex PEL 91, Beach completed two horizontal oil wells (Balgowan 7 & Kalladeina 15) that were cased and suspended as future producers, with a third horizontal well (Kalladeina 16) drilling ahead at quarter end.
Beach report that drilling results were in-line with expectations, and they plan for all three horizontal oil development wells in ex PEL91 to be brought online in its Q3 2022.
Gas exploration well Lowry Southwest 1 and sidetrack DW1 were plugged and abandoned during the quarter.
Beach anticipate drilling of up to 11 oil exploration wells throughout the Western Flank, with additional wells planned after an assessment of the results.
"We are pleased with Beach's recent drilling success on our GOR licences, and with the three horizontal wells to be brought on line in Beach's Q3 2022; this should increase reserves and reduce previously anticipated field decline rates", stated
About Newport
The Company receives its GOR from Beach which is not a reporting issuer in
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
The Company currently has 105,579,874 common shares issued and outstanding and approximately
Details of the next GOR payment will be reported at the end of February or early
Neither the
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
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.
SOURCE
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