BEACH REPORT ANNUAL PRODUCTION RESULTS, UPDATED RESERVES AND DRILLING ACTIVITIES. 100% SUCCESS RATE (INCLUDING BAUER 70) WITH PLANS TO EXTEND PLAY HORIZONS AND UNLOCK SCALE ON EX PEL 91.

Beach Energy reported its FY26 annual results for the Western Flank of the Cooper Basin, Australia, where Newport Exploration Ltd. holds a 2.5% gross overriding royalty (GOR). Total Western Flank production declined 35% year-over-year, driven by 2025 basin flooding, heavy Q1 FY26 rains, and natural field decline.

Beach achieved a 100% success rate across its 12-well oil appraisal and development campaign, including the quad-lateral Bauer 70 well. 100% of reported 1P and 2P Western Flank gas reserves, and 45% of 1P oil reserves, relate to Newport's GOR licenses.

Beach plans to complete three remaining wells and launch an eight-well exploration campaign in Q2 FY27 to extend play horizons. Newport reports $2.7 million in treasury cash and zero debt.

Newport Exploration Ltd. (NWX) released data confirming operational progress, though the update does not alter the company's fundamental risk and reward profile. While a 100% drilling success rate is encouraging for future reserve replacement, a 35% year-over-year production decline highlights persistent headwinds stemming from weather conditions and natural decline.

The market has already priced in the drilling success and production trends, as evidenced by the stock trading in a tight $0.11–$0.12 range following the announcement.

Newport Exploration Ltd. is a royalty and exploration company focused on the Cooper Basin in Australia and the Chu Chua copper-gold property in British Columbia. Its core asset is a 2.5% gross overriding royalty on licenses ex-PELs 91, 106, 107, and PRL 26, which are operated by Beach Energy Ltd. Newport holds no control over operating decisions and relies entirely on independent disclosures from Beach Energy and Santos Ltd. The Chu Chua property remains in the exploration stage with no production revenue.