Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, May 11, 2021 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to announce its second
quarterly cash dividend ("the Dividend") in 2021, of $0.02 per share to its shareholders of record at
the close of business on May 26,
2021. The Dividend payment date is June 10, 2021.
The Dividend, fully approved by the Board of Directors, is not
subject to any changes and has been designated as an "eligible
dividend" for Canadian income tax purposes.
Increased Dividend
As stated in a Company News Release dated March 12, 2021, the Company retains the option of
increasing the quarterly dividend at any time, as it did in
December 2020 with the tripling of
the scheduled quarterly dividend amount. The Company's strong
balance sheet ensures that it has the ability to not only maintain
regular $0.01 per share quarterly
dividend payments, but to increase the second quarterly dividend
for 2021 to $0.02 per share. This is
being done for the benefit of all shareholders and without taking
on any debt or undertaking equity financing.
Notwithstanding the doubling of the second quarter 2021
dividend, the Company still retains a margin of financial safety to
maintain scheduled dividend distributions.
"The recent decrease in production should be offset this
quarter as a result of the 39% increase in oil price received by
Beach, and by doubling the second quarterly dividend, Management is
simply keeping its pledge to return GOR revenues to shareholders in
a timely manner," stated Ian
Rozier, President and CEO of Newport.
About Newport
Newport has an advantageous
business model with a 2.5% Gross Overriding Royalty ("GOR") over
permits in the Cooper Basin, Australia, operated by Beach Energy Ltd
("Beach"). There is no time limit or expiry date on the GOR assets,
and no cost to the Company to retain them.
Newport has no control over
operating decisions made by Beach. Accordingly, this prevents the
Company from commenting on Beach's operating plans going forward.
The Company recommends that shareholders and potential investors
access material information relevant to the Company as released
independently by Beach and Santos Ltd in order to keep current
during exploration, development and potential production of all the
licences subject to the Company's GOR. The Company receives its GOR
from Beach which is not a reporting issuer in Canada, therefore Newport is not able to confirm if the
disclosure satisfies the requirements of NI 51-101 - Standards of
Disclosure for Oil and Gas Activities, or other requirements of
Canadian securities legislation.
The Company currently has 105,579,874 common shares issued and
outstanding and $5.8million in the
Treasury (comprised of cash, cash equivalents and short-term
investments), and no debt. The Company expects to receive the next
royalty payment from Beach prior to the dividend payment on
June 10, 2021.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the accuracy or
adequacy of this news release.
Cautionary Statement on Forward-Looking Information
This news release is intended to provide readers with a
reasonable basis for assessing the future performance of the
Company. The words "believe", "should", "could", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements may pertain to assumptions regarding
Beach's drilling plans, future dividends, the price of oil and
fluctuations in currency markets (specifically the Australian
dollar). Forward-looking statements are based upon a number of
estimates and assumptions that, which are considered reasonable by
the Company, are inherently subject to business, economic and
competitive uncertainties and contingencies. Factors include, but
are not limited to, the risk of fluctuations in the assumed prices
of oil, the risk of changes in government legislation including the
risk of obtaining necessary licences and permits, taxation,
controls, regulations and political or economic developments in
Canada, Australia or other countries in which the
Company carries or may carry on business in the future, risks
associated with developmental activities, the speculative nature of
exploration and development, and assumed quantities or grades of
reserves. Readers are cautioned that forward-looking statements are
not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those acknowledged
in such statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
SOURCE Newport Exploration Ltd.