Newport Exploration cites three wells drilled by Beach

Executive Summary

• Newport Exploration Ltd. reports on the FY26 Q3 activities of Beach Energy Ltd. in the Cooper Basin, Australia, specifically regarding licenses subject to Newport's 2.5% gross overriding royalty (GOR).
• Beach Energy achieved a 100% success rate on new wells drilled at Stunsail West, Kangaroo 5, and Kangaroo 6, despite weather-related delays in February and March.
• Production on the Western Flank was impacted by heavy rainfall, with oil production down 8% quarter-over-quarter, while gas and gas liquids production increased by 9%.

Key Details

• Drilling Success: 100% success rate on new wells at Stunsail West, Kangaroo 5, and Kangaroo 6.
• Stunsail West 1 Well:
  • Drilled and encountered oil in the primary Namur reservoir and secondary McKinlay and Birkhead reservoirs.
  • Oil-water contact in the Namur reservoir is consistent with the Stunsail field (1 km west), suggesting a continuous oil accumulation.
  • Follow-up appraisal activity is being assessed to derisk a greater Stunsail development campaign.
• Kangaroo 5 Well:
  • Targeted the Birkhead reservoir, approx. 700 meters north of Kangaroo 1.
  • Proved communication with offset producer Kangaroo 1.
  • Planned to be fracture stimulated and completed as a water injection well to maximize field recovery.
• Kangaroo 6 Well:
  • Targeted the Birkhead reservoir.
  • Cased and suspended; planned to be completed and connected in Beach's Q4 FY26.
• Production Metrics (Western Flank):
  • Total production: 8% below prior quarter.
  • Oil production: 16% below prior quarter (due to extensive rainfall in Feb/Mar).
  • Gas and gas liquids production: 9% above prior quarter.
• Remaining Drilling Campaign:
  • Includes six oil development wells in Bauer, Kalladeina, Spitfire, and Stunsail fields, plus one contingent Kalladeina well.
  • Due to weather delays, Beach expects four of the remaining six wells to be drilled in FY26.
  • The remaining two wells will be drilled in FY27, followed by an oil exploration campaign.
• Newport Financial Position:
  • 105,579,874 common shares issued and outstanding.
  • Approximately $2.8 million in treasury (cash, cash equivalents, short-term investments).
  • No debt.

Notable Quotes

• "A difficult operating environment during the recent quarter was more than offset by the successful drilling campaign with a 100-per-cent success rate to date from the Stunsail West, Kangaroo 5 and Kangaroo 1 west wells. We believe the continuity between the recently drilled wells and the existing producing wells is very encouraging for future production from the licences that are subject to Newport's GOR," stated Ian Rozier, president and chief executive officer of Newport.