Newport Exploration Ltd. ("Newport" or "the Company") is pleased to provide an update on drill results from the Western Wet Gas Fairway, Wet Gas joint venture in the Cooper Basin, Australia, (Drillsearch 50%, Beach 50% and Operator) as reported by Drillsearch Energy Limited ("Drillsearch"), which is subject to the Company's 2.5% gross overriding royalty.
Beach Energy Limited ("Beach") drilled the Ralgnal-1 exploration well in PRL 130 (formerly PEL 106). Drillsearch's preliminary evaluation of well logs indicates a gross interval in the Patchawarra Formation between 2,379 and 2,787 metres with net pay of 6.6 metres, and a gross interval in the Tirrawarra. Formation between 2,787 and 2,842 metres with net pay of 3.0 metres. A Drill Stem Test (DST) was performed over the Patchawarra Formation with gas flowing to surface at a rate of 5.88 mmscf/d. Test flow rates for condensate are currently under review. The well will be cased and suspended as a new discovery, with a cased hole test proposed prior to completion of the well. Newport is encouraged by the success of Ralgnal-1.
In the Wet Gas joint venture with Santos Ltd ("Santos") (Drillsearch 40%, Santos 60% and Operator), the Nulla North-1 well spudded on 27 January in the northwest of PRL 133 (formerly PEL 632). As a near-field exploration well, Nulla North-1 targeted wet gas in the Patchawarra Formation and Tirrawarra Sandstone. Preliminary assessment of initial mud and wireline logs has identified multiple wet gas shows in the Patchawarra Formation and the deeper Tirrawarra Sandstones. The joint venture is proceeding with a DST of the well to determine whether a new wet gas discovery has been made.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Drillsearch in order to keep current during an active period in the exploration and development of these permits.