Drill Results Routine +

BEACH ENERGY'S Q3 ACTIVITIES REPORT 100% SUCCESS RATE FROM NEW WELLS DRILLED AT STUNSAIL WEST, KANGAROO 5 AND KANGAROO 1 WEST

Drilling Success Confirms Royalty Play, But Weather Risks Persist in Cooper Basin

By The Northwire Desk — AI Analysis Apr 30, 2026 · 17:15 NWX · 0.13 Newport Exploration Ltd.

Executive Summary

Newport Exploration Ltd. provided an update on its 2.5% gross overriding royalty (GOR) assets in the Cooper Basin following Beach Energy's Q3 FY26 activities report.
Recent drilling at Stunsail West, Kangaroo 5, and Kangaroo 1 West achieved a 100% success rate with significant oil encounters reported.
Heavy rainfall during February and March impacted Western Flank production, causing an 8% overall decline, though gas and gas liquids production increased by 9%.
Stunsail West 1 encountered oil in primary Namur and secondary McKinlay/Birkhead reservoirs suggesting continuous accumulation with existing fields.
Kangaroo 5 proved communication with offset producer Kangaroo 1; well to be fracture stimulated and completed as a water injection well.
Future drilling schedule includes six oil development wells (Bauer, Kalladeina, Spitfire, Stunsail) and one contingent Kalladeina oil well.
Due to weather delays, four of the remaining six wells are expected to be drilled in FY26, with final two scheduled for FY27.
Newport's financial position remains stable with approximately $2.8 million treasury and no debt.

Material Impact

The news confirms a 100% success rate on drilling which was previously announced in the February 5th H1 results update; this is not new information but rather validation of an ongoing trend.
Production decline due to weather (8%) is consistent with previous reports regarding flooding impacts, indicating operational risk remains materialized rather than resolved.
The confirmation of well connectivity and oil accumulation supports the long-term thesis for the royalty asset but does not materially change the valuation model immediately.
No new financing or capital raise was announced; cash position ($2.8M) is sufficient to cover near-term operations without dilution risk.
The split of remaining drilling between FY26 and FY27 due to weather delays suggests execution risks persist, tempering immediate upside potential.

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Company Overview

Newport Exploration Ltd. holds a 2.5% gross overriding royalty (GOR) on Beach Energy's Cooper Basin licences in Australia.
The flagship asset is the Western Flank of the Cooper Basin, where Beach Energy operates drilling and production activities.
Newport has no control over operational decisions but benefits from production volume without direct cost exposure to operations.
The royalty interest has no time limit or cost to retain, providing a passive income stream structure.
Independent reserves were audited by Netherland, Sewell and Associates Inc. per PRMS/SPE standards as of June 2025.

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