Newport notes Western Flank produces 800k boe in H1

Executive Summary

• Newport Exploration Ltd. reports on the first-half fiscal 2026 results of Beach Energy Ltd., specifically regarding the Cooper Basin licenses subject to Newport’s 2.5% gross overriding royalty (GOR).
• Beach Energy achieved a 100% success rate on the first six wells of a new 12-well appraisal and development campaign in the Western Flank, with one well already on production.
• Overall production from the Western Flank declined 41% year-over-year to 800,000 barrels of oil equivalent, primarily due to flooding and natural field decline.

Key Details

• GOR Interest: Newport holds a 2.5% gross overriding royalty (GOR) on licenses in the Cooper Basin, Australia, operated by Beach Energy.
• Production Metrics (Western Flank):
  • Total Production: 800,000 barrels of oil equivalent (BOE).
  • Oil Production: 500,000 barrels.
  • Variance: 41% decrease in total BOE and 45% decrease in oil production compared to the prior corresponding period.
  • Drivers: Decrease attributed to flooding in the Cooper Basin and natural field decline.
• Drilling Campaign Status:
  • Appraisal/Development: Beach commenced a 12-well oil appraisal and development campaign.
  • H1 FY26 Activity: Three oil development wells were drilled. All were cased and completed, with connections targeted for Q3 FY26.
  • Success Rate: 100% success rate on the first six wells drilled to date.
  • Current Status: One well is on-line and producing; remaining wells to be drilled and connected in H2 FY26.
  • Future Plans: A 10-well oil exploration campaign is scheduled to commence in late FY26 and continue into FY27.
• Company Financials (Newport Exploration Ltd.):
  • Shares Outstanding: 105,579,874 common shares.
  • Treasury: Approximately $2.9 million (cash, cash equivalents, and short-term investments).
  • Debt: None.
• Regulatory Note: Newport is not a reporting issuer in Canada and cannot confirm if Beach’s disclosure satisfies National Instrument 51-101 or other Canadian securities legislation requirements.

Notable Quotes

• Brett Woods, Managing Director and CEO of Beach Energy: "Restoration of road access enabled us to commence a 12-well oil appraisal and development campaign in the Western Flank, the first campaign in the flank in more than 2-1/2 years. The team achieved early success with the first three wells drilled in the Callawonga field, and our 100-per-cent success rate has continued following the end of the half. One well has been brought on-line and is now producing, with the remaining wells to be drilled and connected in H2 fiscal 2026. This will be followed by a 10-well oil exploration campaign, which has the potential to unlock new reserves and further drilling opportunities in the basin."
• Ian Rozier, President and CEO of Newport Exploration Ltd.: "Newport is pleased that the first drilling campaign in more than 2-1/2 years is under way and congratulates Beach on its 100-per-cent success rate on the first six wells drilled to date."