Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Sept. 10, 2021 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to announce the payment of
its third quarterly cash dividend ("the Dividend") in 2021 of
$0.02/share, to its shareholders of
record at the close of business on August
26th, 2021. As previously disclosed, the Company
proposes to continue with the payment of quarterly dividend
distributions, with the next payment scheduled for December,
2021.
Management Strategy
As reported in a Company News Release dated February 10th, 2021, Management's
dividend strategy has enabled the Company to retain a margin of
safety to maintain dividend distributions despite the sector
downturn in 2020, with 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
ability to return cash to shareholders is attributed to the
recurring free cash flow generated by its 2.5% Gross Overriding
Royalty ("GOR") from licences in the Cooper Basin, Australia, operated by Beach Energy Ltd
("Beach").
The recent increase in the oil price has helped offset Beach's
decrease in production and has enabled the Company to double the
second and third quarterly dividends of 2021, with the third
dividend payment made today.
Guidance
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 ("Santos") 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.
About Newport
Newport holds a 2.5% GOR on
several oil and gas licences and permits in the Cooper Basin in
Australia. These licences and
permits are currently being operated and explored by Beach and
Santos, both major Australian oil and gas producers.
The Company currently has 105,579,874 common shares issued and
outstanding, and after this dividend to shareholders has
approximately $4.9 million in the
Treasury (comprised of cash, cash equivalents and short-term
investments), and no debt.
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, 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.
© 2021 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.