Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, June 1, 2022
/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 February - April 2022
quarter. Gross royalty income for the quarter was AUD$2,193,767.
The AUD$1,535,637 payment received by Newport is net of 30% Australian withholding
tax (AUD$658,130).
Company Financial Status
Newport has approximately
CDN$5.6 million in its Treasury,
comprised of cash, cash equivalents and short-term investments. As
announced on May 10th,
2022, Newport's second quarterly
dividend payment date for 2022 is June
9th, 2022. After the dividend payment, the
Company will have approximately CDN$3.5
million in its Treasury, and no debt.
The Company has a strong balance sheet and management is
confident in its ability to maintain regular quarterly dividend
payments as committed to in its News Release dated December 10th, 2019.
Management Strategy
The Company's Management Strategy was summarized in a Company
News Release dated February
10th, 2021.
Newport proposes to maintain
regular dividend payments to shareholders with the option of
increasing quarterly payments at any time, as it has with the
payment to be made on June
9th. Investors are cautioned that historical
results are no guarantee of future performance.
"As previously disclosed by the Company, as a result of
flooding in late January, Beach demobilized its rigs in the
Western Flank during February, which resulted in a reduction
of oil shipments and sales from the Bauer field during the period.
The royalty payment thus effectively represents approximately two
months of sales in the Quarter. We anticipate an increase in sales
for the next quarter with operations recommencing", stated
Ian Rozier, President and CEO of Newport.
About Newport
Newport has 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.
© 2022 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.