Newport says Beach well tested at 5.8 MMscfd of gas
NEWPORT EXPLORATION Ltd. has released an exploration activity update on licence sin the Cooper basin, Australia, over which the company has a 2.5-per-cent gross overriding royalty. This information was reported by Beach Energy Ltd. in a news release dated Dec. 6, 2017, and reference should be made to its website for its interpretation of the results and any plans to bring wells into production.
Western Flank gas — ex PEL 106
Beach continued its fiscal year 2018 operated gas exploration and appraisal campaign, which is focused on the Southwest Patchawarra (SWP) and Permian edge (PE) play fairways. The fourth exploration well of the campaign, Naiko-1, is located in the SWP play fairway approximately two kilometres northeast of the Middleton gas facility. Naiko-1 was designed to test viability of the gas and condensate system within the SWP play fairway in the mid-to-lower intervals of the Patchawarra formation. The well intersected two metres of net pay in the mid interval and was cased and suspended as a future producer. An open-hole drill stem test was conducted over the interval 2,692 m to 2,697 m and flowed at up to 5.8 million standard cubic feet (MMscf) per day on a 32/64ths-inch choke at 1,149 pounds per square inch of flowing tubing head pressure.
Preliminary analysis of test results indicates that Naiko-1 is potentially connected to the Middleton field and, as pressure is higher than at Middleton, will likely add reserves.
The campaign continued with the fifth well, Largs-1, located in the SPW immediately south of the Middleton gas facility. Similar to Naiko-1, the well is testing the viability of the gas and condensate system within the SWP play fairway in the mid-to-lower intervals of the Patchawarra formation. At month-end Largs-1 had reached total depth of 2,284 m and evaluation of the well was under way. A vertical seismic profile was conducted, augmenting existing regional seismic data in order to enhance evaluation of future drilling prospects.
As disclosed by Beach in its news release dated Dec. 5, 2017, its FY 2018 operated Western Flank gas drilling campaign has provided early successes, with three discoveries from the program’s first four wells. These include Lowry-1, Crawford-1 and the Naiko-1 discovery, which was drilled in November, 2017. Beach reported that this continuing exploration success in the Western Flank, combined with continued strong demand for Cooper basin gas, has validated Beach’s decision to pursue phase 1 expansion of the Middleton facility.
Daily raw gas capacity will be increased from 25 MMscf to 40 MMscf through twinning of the gas export line from Middleton to Moonanga. Completion by the end of June, 2018, is targeted and incremental gas will then be available for sale into the contract or spot markets.
The company receives a gross overriding royalty from the operator who is not a reporting issuer in Canada, and therefore, not required to comply with the requirements of National Instrument 51-101 — Standards of Disclosure for Oil and Gas Activities. Thus, Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101
or other requirements of Canadian securities legislation. The company is unable to report on the potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd. to keep current during exploration, development and production guidance of all the licences subject to the company’s gross overriding royalty.
We seek Safe Harbor.
David William Cohen, Barbara Eileen Dunfield, John Merfyn Roberts, Ian Terrence Rozier
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