Mr. Ian Rozier reports

NEWPORT EXPLORATION LTD.: UPDATE ON DEVELOPMENTS IN COOPER BASIN, AUSTRALIA

Newport Exploration Ltd. is providing an update on drill results and the successful conversion of exploration licences (PELs) to production licences (PRLs) in the Cooper basin in Australia, which are subject to the company's 2.5-per-cent gross overriding royalty.

Production retention licences granted

Beach Energy Ltd. reports that on PEL 91, 22 production retention licences have been granted, with designation numbers PRL 151 to PRL 172, which secures tenure for this Western Flank oil operation for up to 15 years.

Beach also reports that on PEL 106, two PRLs have been granted, with designation numbers PRL 129 and 130, which secures tenure for this Western Flank wet gas operation for up to 15 years.

PRLs 151 to 172 (formerly PEL 91)

Beach reported that drilling continued during the December quarter on PRLs 151 to 172 and PRLs 253 to 256, formerly known as PEL 91. Six new Bauer development wells, Bauer-14 to -19, were all cased and suspended as future oil producers. As reported by Beach in its quarterly report ending Dec. 31, 2014, and in a news release dated Jan. 29, 2015, oil production increased 3.5 per cent to 423,000 barrels (net), mainly due to higher production from the Bauer field. Bauer-12 and -13 came on-line last year and contributed a full quarter of production. Bauer-14 and -15 were brought on-line in December, 2014, and the Bauer-16 to -19 wells will be brought on-line early this year. Infrastructure upgrades continued, including flow line debottlenecking and preparation for fluid handling capacity increases at the Bauer facility.

The Bauer-16 to -19 wells are part of a broader, full-field development plan aimed at optimizing production through the development of the highly productive Namur sandstone reservoir. Following the success of the four-well pad drilling program in the December quarter, Beach has brought forward the drilling of an additional four development wells, with Bauer-20 to -23, starting in early 2015.

Hanson-2 was drilled as a development well approximately 450 metres to the east of the currently producing Hanson-1 well. Hanson-2 was cased and suspended as a future Namur sandstone and McKinlay member oil producer. The well intersected the target top Namur sandstone with six metres of net oil pay in the McKinlay member and Namur sandstone reservoirs.

                                                                    McKinlay
                                                     Namur            member
                              High/(low)         sandstone          interval
                           to prognosis            oil pay           (gross;
Well                            (metres)      (net; metres)           metres)

Bauer-14                           (0.6)                 -               4.1
Bauer-15                            2.2                5.5               4.3
Bauer-16                           (1.1)               3.5               4.5
Bauer-17                            3.1                5.5               4.2
Bauer-18                            0.7                6.6               4.2
Bauer-19                            4.2                8.7               3.9

PRLs 129 and 130 (formerly PEL 106)

Sales gas and LPG (liquefied petroleum gas) production increased 25 per cent to 89,000 barrels of oil equivalent (net), mainly due to limited downtime at the Moomba processing facility. Condensate production decreased 30 per cent to 9,500 boe due to reduced gas flow from Canunda-1.

The five-well exploration and appraisal campaign, which is proximal to the existing Canunda field and gas pipeline to Middleton, is near completion. The program is targeting gas and gas liquids in the Patchawarra formation and Tirrawarra sandstone. The Ralgnal-1 exploration well spudded and is currently drilling ahead.

The company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Drillsearch Energy Ltd. in order to keep current during an active period in the exploration and development of these permits.

We seek Safe Harbor.