Overview of New Hope Corporation's petroleum reserves and contingent resources assessment

New Hope Corporation Limited (ASX:NHC) has released its formal assessment of petroleum reserves and contingent resources through its wholly-owned subsidiary Bridgeport Energy Pty Limited (BEL). As of 31 July 2024, Bridgeport's net 2P reserves stand at 4.4 million barrels of oil equivalent, with 2C resources totaling 4.9 million barrels of oil equivalent. BEL operates onshore oil production from 9 petroleum projects in Queensland and holds exploration tenements in Queensland, South Australia, and Victoria.

Executive commentary on reserves statement

Bridgeport's CEO Chris Way commented, 'The Company's petroleum projects in the Cooper-Eromanga and Surat basins have benefited from the current high oil price and continue to be profitable, sound long term earners for the business, especially those operated by the Company. However, disappointingly the appraisal well drilling program at the non-operated gas projects in southwest Queensland has significantly underdelivered on the operator's forecast, resulting in a substantial (~93%) downgrade of 2P reserves to 2C resources for most of the remaining undeveloped gas. The operator, Vintage Energy, is undertaking workover activities to address the under performance of the Vali and Odin production wells, in an attempt to minimize water production and/or access production zones. This material downgrade in 2P reserves reflects the commercial realities facing these projects.'

Summary of Bridgeport Energy's petroleum reserves and contingent resources assessment

Bridgeport Energy Pty Limited's assessment reveals 4.4 million barrels of oil equivalent in 2P reserves and 4.9 million barrels of oil equivalent in 2C resources as of 31 July 2024. The company operates onshore oil production from 9 petroleum projects in Queensland and holds exploration tenements in Queensland, South Australia, and Victoria. Despite the challenges faced in the non-operated gas projects, Bridgeport Energy remains focused on maximizing the potential of its petroleum projects in the Cooper-Eromanga and Surat basins. The company's shift towards the use of non-GHG agents for enhanced oil recovery purposes demonstrates its commitment to adapting to regulatory changes and environmental considerations. Bridgeport Energy's continued efforts in addressing operational challenges and exploring new opportunities reflect its dedication to sustainable growth and development in the petroleum sector.