Newport Exploration Ltd. provided an update on the drilling progress on PPL 253 (Ex PEL 91) as reported by Beach Energy Ltd. Ex PEL 91 (Beach 40% and operator/Drillsearch Energy Limited 60%) is located in the Cooper Basin, Australia and is subject to the company's 2.5% gross overriding royalty. As reported by Beach on January 5, 2016, the Bauer24 Well is the southernmost well in the Bauer Field and is located approximately 80 kilometres west of Moomba and approximately one kilometre north of the Chiton Field. The well was drilled to appraise a 'structural high' between the Bauer and Chiton fields as a possible extension of the Bauer Field.

Primary targets were the McKinlay Member and Namur Sandstone reservoirs, with the Birkhead Formation providing a secondary target. The well was cased and suspended as a future producer following intersection of a three metre net oil column in the Namur Sandstone and a 3.5 metre gross oil bearing interval in the overlaying McKinlay Member. The Bauer25 appraisal well was spudded on 28 December 2015.

Bauer-25 is located on the northern flank of the Bauer Field and is the northernmost well in the field. The northern flank is a low relief area extending to the Bauer North1 discovery well, approximately 1.3 kilometres northeast of Bauer25. The well will test a northern extension of the Bauer Field and is targeting the McKinlay Member and Namur Sandstone reservoirs, with the Birkhead Formation providing a secondary target.

Success at Bauer25 may provide encouragement for further appraisal drilling in the area. The company continues to strongly encourage shareholders and potential investors to access information released independently by Drillsearch, Beach and Santos Ltd. in order to keep current during the exploration and development of the licences subject to the company's 2.5% gross overriding royalty.