Mr. Ian Rozier reports

NEWPORT REPORTS THAT PRODUCTION GROWTH CONTINUES WITH 16% INCREASE IN QUARTERLY OIL PRODUCTION FROM EX PEL 91

Newport Exploration Ltd. has provided an update on production and drilling activities on licences in 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 its fiscal 2020 second quarter activities report dated Jan. 29, 2020.

Production

Beach's quarterly oil production from ex PEL 91 increased by 16 per cent, with ex PEL 91 reporting production of 1,556,000 barrels of oil equivalent, up from 1,337,000 barrels of oil equivalent in the first quarter.

Beach's Western Flank gas liquids production from ex PEL 91/106 was 545,000 barrels of oil equivalent, 6 per cent higher than the prior quarter, as two high-liquid-content Lowry wells were connected and facility reliability was maintained at greater than 99 per cent.

Fieldwork continues to support higher liquids production rates.

Drilling

Highlights of Beach's drilling program include a 100-per-cent success rate from nine oil development wells across the Bauer, Kalladeina and Chiton fields in ex PEL 91. The wells comprise three vertical and six horizontal wells, including a horizontal well with the longest lateral length drilled by Beach in the Western Flank to date at 1,629 metres. At quarter-end, one horizontal well was drilling ahead.

At the Bauer field in ex PEL 91, the Bauer Northwest-2 and Bauer Northwest-3 appraisal wells were cased and suspended as future producers. The results from these wells indicate a northerly extension of the Bauer field. Utilizing production data from the wells, the potential for future appraisal and development drilling will be evaluated.

At the Arno field in ex PEL 91, the Arno appraisal drilling campaign was completed, with the Arno-3 well also being cased and suspended as a future producer.

Oil price

The average realized price of oil for the quarter increased by 3 per cent to $105.90 (Australian) per barrel.

Guidance

The company receives its gross overriding royalty from Beach, which is not a reporting issuer in Canada; therefore, Newport is not able to confirm if the disclosure satisfies the requirements of National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.

The company is unable to forecast potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd.

We seek Safe Harbor.