Trading Symbol: NWX (TSX-V)
VANCOUVER, BC ,
Aug. 31, 2021 /CNW/ - Newport
Exploration Ltd ("Newport" or "the Company") is pleased to report
the receipt of its after tax 2.5% Gross Overriding Royalty ("GOR")
payment from Beach Energy Ltd. ("Beach") for the May 2021 – July
2021 quarter. Gross royalty income for the quarter was
AUD$3,052,797. The AUD$2,136,958 payment received by Newport is net of 30% Australian withholding
taxes (AUD$915,839).
Company Financial Status
Newport has approximately
CDN$7 million in its Treasury,
comprised of cash, cash equivalents and short-term investments,
with no debt. As announced on August
11th, 2021, Newport's third quarterly dividend payment
date for 2021 is September
10th, 2021. After the dividend payment, the
Company will have approximately CDN$4.9
million in its Treasury.
The Company has a strong balance sheet and management is
confident in its ability to maintain regular quarterly dividend
payments. Investors are cautioned that historical results are no
guarantee of future performance.
Management Strategy
The Company's management Strategy was summarized in a Company
News Release dated February
10th, 2021. Notwithstanding the doubling of the
third and second quarter 2021 dividends, the Company still retains
a margin of financial safety to maintain scheduled dividend
distributions.
"We remain optimistic about the potential for future drilling
success in ex-PEL 91 and look forward to Beach's next drilling
results. As anticipated, with respect to the GOR, the continued
decrease in production from the Bauer Field has been offset by the
increase in oil prices", stated Ian
Rozier, President and CEO of Newport.
About Newport
Newport has an advantageous
business model with a 2.5% GOR over permits in the Cooper Basin,
Australia, operated by 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.
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, the price of oil and fluctuations in
currency markets (specifically the Australian dollar) and future
dividend payments. 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.