Sam Dan
3 years ago
Management reports further good news from Beach Energy. Revenue increase due to gas price rise will obviously assure dividend payment. May even increase next quarters dividend payout
("Newport" or "the Company") provides an update on guidance for licences in the Cooper Basin, Australia, over which the Company has a 2.5% gross overriding royalty ("GOR"). This guidance was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its FY22 First Quarter Activities Report dated 20 October 2021.
Newport Exploration Ltd. Logo (CNW Group/Newport Exploration Ltd.)
Realized Oil & Gas Prices
The average realized price of oil was AUD$110.3/bbl, up 11% on the previous quarter. This realized oil price is for Beach's quarter ended September 30th, 2021. Newport's first quarter ends October 31st, 2021 and therefore, based on the continued increase in oil prices through October, as well as the premium paid to Beach for Brent oil produced from the Western Flank, the Company anticipates a higher realized oil price for its first quarter GOR payment.
The realized gas price decreased 2% to AUD$7.5 per GJ, a 5% increase on the prior corresponding period.
Beach report their average realized price across all products was AUD$67.3/boe, a 3% increase over the prior quarter.
Production
Highlights of the first quarter production from the Western Flank in the Beach report are as follows.
Production from the Western Flank was 1.6 MMboe, down 10% on the prior quarter, with lower volumes offset by higher gas and associated liquids production. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91, 106,107 and PRL 26, as well as licenses ex-PEL's 92, 104 and 111, over which the Company does not have a GOR). Western Flank oil production was 1.0 MMboe, down 18% on the prior quarter due to natural field decline, with no new wells tied-in during the quarter.
Higher than anticipated production rates and development activity during the second quarter of FY22 are expected to further reduce declines during the second half of its financial year.
Western Flank gas and gas liquids production was 574 kboe, up 12% on the prior quarter, following planned maintenance work at the Middleton gas processing facility.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
FY22 Drilling Activities
Beach commenced the FY22 oil drilling program with the Kangaroo 2 appraisal well drilled in ex PEL 91 to appraise the Birkhead reservoir of the Kangaroo field. The well intersected the oil-bearing Birkhead reservoir and was completed as a future water injector to support oil recovery from the field.
The FY22 gas exploration drilling program commenced in ex PEL 106 in late August 2021. Three wells were drilled by the end of the first quarter, yielding two discoveries at Rosebay 1 and Lowry South 1. Both discoveries will be completed as producers and tied-in to the Middleton gas processing facility in mid-FY22. The final well in the gas exploration campaign, Lowry Southwest 1, was drilling ahead at the end of the quarter.
A total of three horizontal development wells will be drilled in ex PEL 91 in the McKinlay reservoir of the Balgowan and Kalladeina fields. Beach anticipate drilling of up to 15 oil exploration wells in various licences throughout the Western Flank.
"Beach's previously announced anticipated field decline rates were based on existing reserves at that time with no consideration for new wells to replace oil reserves, so we are pleased with their recent success in oil and gas drilling on our GOR licences as well as their proposed drilling activities on ex PEL 91", stated Ian Rozier, President & CEO of Newport.
About Newport
The Company receives its GOR from Beach which is not a reporting issuer in Canada. Therefore, Newport is not able to confirm if disclosure satisfies the requirements of Canadian Securities legislation.
Newport has no control over operating decisions made by Beach and is not privy to exploration or production data derived by Beach during operations. Accordingly, this prevents the Company from commenting on operating plans going forward.
As always, 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 production of all the licenses subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $4.8 million in the treasury (comprised of cash, cash equivalents and short-term investments) and no debt.
Details of the next GOR payment will be reported at the end of November or early December 2021.
Sam Dan
3 years ago
Further update from management shows revenue stream from Beach holdings will support ongoing dividends.
As well development of oil and gas fields may increase output to counter older field reductions of output and increase total output.
"("Newport" or "the Company") provides an update on operations for licences in the Cooper Basin, Australia, over which the Company has a 2.5% gross overriding royalty ("GOR"). This information was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its 2021 Investor Update dated 28 September 2021.
Newport Exploration Ltd. Logo (CNW Group/Newport Exploration Ltd.)
Beach reports on the Western Flank, which includes ex PEL's 91, 106 and 107, and PRL 26 which are subject to the Company's GOR, as well as for ex PEL's 92, 104/111, PEL's 113/115/516/90/93, PRL's 83, 135 and PPL 270 which are not.
Production
Beach report the following from the Western Flank;
27 producing oil fields, 4 producing gas fields
Majority of fields are fully appraised and producing under natural reservoir decline following extensive development drilling it its FY20 and FY21
185 wells producing, 115 wells on a level of support
FY23-25 decline rate is projected to progressively reduce from ~20% to ~12%, similar to single well decline
Five additional development wells are planned for its Q2 FY22 to increase production, reduce decline rates and convert undeveloped to developed reserves
Further production increase through re-completion of other reservoirs
Middleton gas volumes are contracted until its mid-FY22
Exploration
Beach report the following from the Western Flank;
Oil
24 oil prospects were developed to drillable status in Beachs' FY22
Up to 15 oil exploration wells planned for the second half of FY22
Focus will be on proven Namur and McKinlay reservoirs
Drilling will be adjacent to existing discoveries to facilitate tie-in for FY23 onwards production
Gas
Commenced drilling the four gas exploration wells planned for its FY22
Two discoveries have been made from the three wells drilled to-date on ex PEL 106, being the Rosebay and Lowry South wells.
Plans for wells to be tied in late Q2 FY 222
Reserves will be evaluated once production history is sufficient
Further potential exists within and to the south of the existing fields
About Newport
The Company receives its GOR from Beach, which is not a reporting issuer in Canada. Therefore Newport is not able to confirm if disclosure satisfies the requirements of Canadian Securities legislation.
Newport has no control over operating decisions made by Beach and is not privy to exploration or production data derived by Beach during operations. Accordingly, this prevents the Company from commenting on operating plans going forward.
As always, 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 production of all the licenses subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and approximately $4.9 million in the treasury (comprised of cash, cash equivalents, and short-term investments), and no debt"
Sam Dan
3 years ago
More good financial news from management. Justifies the doubling of the quarterly dividend
"("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).
Newport logo (CNW Group/Newport Exploration Ltd.)
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."
Sam Dan
4 years ago
It won't cover the cost of the yacht but every bit helps .New
dividend announced for payment increased to .02 cents
("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.
Sam Dan
4 years ago
I will commend management for properly handling today's news regarding Beach's report of decreased oil projections.
It's not a major imminent problem with oil prices rising but has to adjust the life of the production.
Reserve Update
Beach report that a review of 2P reserves across the Western Flank oil and gas fields, including the Bauer oil field on ex-PEL 91, was undertaken following recent declines in oil production. This review has resulted in a net downgrade to 2P reserves across their Western Flank assets. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91,106,107 and PRL 26, as well as ex-PEL's 92,104 and 111, over which the Company does not have a GOR).
With respect to the GOR licences;
oil reserves in the Bauer oil field in ex-PEL 91 have been downgraded by 6.0 MMboe
oil reserves in four other fields in ex-PEL 91 have been downgraded by 8.2 MMboe
reserves in ex-PEL 106 gas fields have been downgraded by 7.2 MMboe
Production Update
Beach have not provided a specific production update for the GOR licences. However, Beach forecast FY21 production of 8.6MMboe for the Western Flank assets. Beach estimate that FY22 Western Flank oil production is expected to be 4.0-5.0 MMbbls below their previous estimates.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Drilling Update
Drilling of the FY21 wells was completed in March 2021 and they are being progressively connected and completed on pump. This activity will continue into Beach's FY22.
The FY22 drilling program will focus on;
infill drilling within existing oil fields
exploration of Namur targets
exploration of over 100 targets and leads already identified and prioritized
Guidance
Beach updated their FY21 Guidance with their Half Year results on February 15th, 2021, and this was summarized in a Company News Release dated February 17th, 2021. Beach report that since the FY21 Half Year Results, additional production data from Bauer oil wells drilled throughout the FY21 drilling campaign confirmed production decline. In addition, Beach report that recent results from oil wells drilled outside of the Bauer oil field, including the Balgowan, Chiton, Hanson and Kalladeina fields have "come in at the low end of expectation".
Beach report that as a result of continuing variability to the business, which include adjustments because of the Covid-19 pandemic, and reductions in Western Flank oil and gas production, it has withdrawn, and will no longer provide, a five-year outlook in its current form.
"Obviously we are pleased with the recent increase in the oil price and this should offset the effects on the GOR of a possible decrease in production for the current quarter, but the downgrading of reserves is disappointing for the long term." stated Ian Rozier, President and CEO of the Company.
Because of the time-zone difference, disclosure of information contained in this news release and as provided by Beach was available in Australia on Thursday April 29, 2021 after market hours in Canada. Because of the uncertainty in being able to disseminate this news release in a timely manner on Friday April 30, 2021 the Company took advice from its legal counsel and asked for trading in the Company's shares to be halted pending dissemination such that shareholders and potential investors unaware of the Beach ASX announcement made late on Thursday April 29, 2021 PST, would not be disadvantaged.
Sam Dan
4 years ago
PR TODAY GIVES UPDATE ON THE COMPANY AND ANNOUNCES NEXT DIVIDEND PAYMENT FOR JUNE. ALL GOOD NEWS.
" Newport Exploration Ltd ("Newport" or "the Company") is pleased to announce the payment of its first quarterly cash dividend ("the Dividend") in 2021 of $0.01/share to its shareholders of record at the close of business on February 25th, 2021. As previously disclosed, the Company proposes to continue with the payment of quarterly dividend distributions, with the next payment scheduled for June, 2021
Annual Dividend and 2021 Share Price Performance
The $0.01/share dividend paid on September 10th, 2020, the $0.03/share dividend paid on December 11th, 2020 and the first quarterly dividend payment in 2021 of $0.01/share dividend paid on March 12th, 2021, along with the dividend to be paid in June, 2021, will be recorded in the Financial Year ended July 31, 2021. 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").
Since 2015 the Company has paid an average Annual Yield of 21%. With Beach's exploration success, reported oil reserves and low production costs, Management is confident that shareholders of the Company should continue to be rewarded with dividend continuity.
Investors are cautioned that historical results are no guarantee of future performance.
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.
Guidance
The Company has an advantageous business model with a 2.5% GOR over permits in the Cooper Basin, Australia, with strong technical fundamentals and excellent operators in Beach and Santos Ltd ("Santos"). Beach is Australia's largest onshore oil producer with a core focus on oil exploration and development activities in the Cooper Basin. Newport has built in exposure to significant potential growth at zero risk to shareholders as there is no time limit or expiry date on the GOR assets, and no cost to the Company to retain or operate them.
As reported in a Company News Release dated January 28th, 2021, Beach continue to achieve extraordinary exploration success (particularly in oil fields on ex-PEL 91). Accordingly, Management is confident that shareholders of the Company should continue to be rewarded with dividend continuity.
Beach updated their FY21 guidance with their half year results on February 15th, 2021, and these were summarized in a Company News Release dated February 17th, 2021.
The deficit between supply and demand that had reached 2.3 million barrels a day in the fourth quarter of 2020, and the large projected draws in 2021 and 2022 are positive for oil prices. The recent increase in the price of Brent oil is encouraging. Also, as noted in previous Company news releases, shareholders are reminded that Beach's oil products command a premium price to the Brent oil price.
"The supply and demand dynamic as indicated by the declines in US oil inventories, along with a global economic recovery from the Covid pandemic all play out in the form of higher oil prices, as is happening, and this should be reflected in our royalty payments, and in turn, the dividends paid to shareholders.", stated Ian Rozier, President and CEO of Newport.
Newport has no control over operating decisions made by Beach. Accordingly, this prevents the Company from commenting on Beach's current financial status and/or 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 in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. Beach's results and performance are also subject to regular research reports by J.P. Morgan (Asia Pacific Equity Research) and by RBC Capital Markets.
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 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 after this dividend to shareholders has approximately $6.1 million in the Treasury (comprised of cash, cash equivalents and short-term investments), and no debt.
Sam Dan
4 years ago
and the monies keep coming in!!
Royalies from Australia continue to flow to the treasury of NWX so dividends to shareholders are properly funded.
"("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 November 2020-January 2021 quarter. Gross royalty income for the quarter was AUD$2,568,598. The AUD$1,798,019 payment received by Newport is net of 30% Australian withholding taxes (AUD$770,57
Newport has approximately CDN$7.1 million in its Treasury, comprised of cash, cash equivalents and short-term investments, with no debt. As announced on February 10th, 2021, Newport's first quarterly dividend payment date for 2021 is March 12th, 2021. After the dividend payment, the Company will have approximately CDN$6 million in its Treasury.
The Company has a strong balance sheet and management is confident in its ability to maintain regular quarterly dividend payments as committed to in the News Release dated December 10th, 2019.
Newport's Dividend Performance, Annual Yields and Earnings Per Share since 2015 were documented in a Company News Release dated November 12th, 2020. 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.
Newport proposes to maintain regular dividend payments to shareholders with the option of increasing quarterly payments at any time.
Guidance
Up-to-date Guidance for shareholders was reported in a Company News Release dated February 17th, 2021.
With the success of the drilling programs conducted by Beach over which the Company holds its 2.5% GOR, Beach's low cost of oil production and the projected Life of Assets of over 15 years (as reported in a Company News Release dated February 17th, 2021), the Company anticipates continuity of production, associated royalty revenues and dividends.
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. Beach's results and performance are also subject to regular research reports by J.P. Morgan (Asia Pacific Equity Research) and by RBC Capital Markets.
"Brent Oil recently hitting a 13-month high marks the oil markets rebound since the Covid pandemic destroyed demand for most of 2020. As the global economy recovers oil demand is expected to continue to increase, and along with Beach's plans to bring eight producers online and to drill six more horizontal wells, this is all very positive for Newport and its shareholders.", stated Ian Rozier, president and CEO of Newport.
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the Cooper Basin in Australia. These permits are currently being operated and explored by Beach and Santos, both major Australian oil and gas producers. 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.
Sam Dan
4 years ago
UPDATE FROM MANAGEMENT QUITE POSITIVE. THEY HAVE BEEN QUITE CLEAR REGARDING DIVIDENDS. QUARTERLY .01 TO BE INCREASED IF REVENUE STREAMS PROVIDE EXCESS. THUS SOME QUARTERS MAY BE HIGHER. BUT THEY ARE REALISTIC ENOUGH NOT TO OVER STRESS THE MONETARY DRAW DOWN.
"("Newport" or "the Company") is pleased to provide additional Guidance as provided by Beach Energy Ltd ("Beach") for future production targets, expenditures and Life of Assets on the Western Flank of the Cooper Basin, Australia. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91, 106, 107 and PRL 26, as well as ex-PEL's 92, 104 and 111, over which the Company does not have a GOR)
Slightly lower oil production from the Western Flank was reported in a Company News Release dated January 28th, 2021. The Company anticipates that this will be offset by higher oil prices in the current quarter.
In a News Release dated January 28th, 2021, the Company made reference to Beach's FY21 Second Quarter Activities Report (the "Report") for the period ended 31st December, 2020. Highlights of the Report were:
A total of eight new wells were brought online during that quarter, with seven horizontal producers and one vertical producer.
Beach reported that four vertical oil producers were to be brought online in their Q3 FY21.
Beach reported that a further four horizontal wells were also to be brought online in their Q3 FY21.
In their Half Year Results reported on February 15th, 2021, and in their Management Call, Beach provided further guidance relevant to the Company's GOR Licences. Highlights are:
Beach report that well interference from McKinlay drilling on the existing Namur and McKinlay producers has resulted in faster than estimated decline rates. Beach have not made any adjustments to reserves as a result of this.
The eight wells referenced in the Report are soon to be connected.
Beach have a further six horizontal wells planned for H2 FY21 in the Bauer Field.
Forecast Capital Expenditure for the Western Flank is AUD$800M-AUD$1B
Beach are targeting production of 20,000 boed and are currently at 18,000boed.
Beach plan to maintain production rates at between 15 and 20kboed.
Beach estimate that Life of Assets on the Western Flank is greater than 15 years.
"With Beach continuing to replace reserves, bringing several new wells online, their targeted production volumes, budgeted expenditures and particularly their estimated Life of Assets, all provide very positive guidance for Newport and our shareholders.", stated Ian Rozier President and CEO of Newport.
Newport has no control over operating decisions by Beach. 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. Beach's results and performance are also subject to regular research reports by J.P. Morgan (Asia Pacific Equity Research) and by RBC Capital Markets.
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the Cooper Basin in Australia. These permits are currently being operated and explored by Beach and Santos, both major Australian oil and gas producers. 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"
Sam Dan
4 years ago
NEXT DIVIDEND COMING! MANagement gives encouraging outlook for continued revenue stream
"[/("Newport" or "the Company") is pleased to announce its first quarterly cash dividend ("the Dividend") in 2021 of $0.01 per share to its shareholders of record at the close of business on February 25th, 2021. The Dividend payment date is March 12th, 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.
The $0.01/share dividend paid in September 2020, the $0.03/share dividend paid in December 2020 and the $0.01/share dividend to be paid in March 2021 will be recorded in the Financial Year ended July 31, 2021.
The Company's Dividend Performance, Annual Yields and Earnings per Share since 2015 were documented in a Company News Release dated November 12th, 2020. Newport's dividend payout ratio, being the cash dividends per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks, particularly those in the energy sector. Investors are cautioned that historical results are no guarantee of future performance.
Management Strategy
Management has received overwhelming support from shareholders for its dividend policy, and many shareholders have expressed the sentiment that paying out a regular dividend at this time is a priority. The 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.
The Company has an advantageous business model with a 2.5% Gross Overriding Royalty ("GOR") over permits in the Cooper Basin, Australia, with strong technical fundamentals and with excellent operators in Beach Energy ("Beach") and Santos Ltd ("Santos"). Beach is Australia's largest onshore oil producer with a core focus on oil exploration and development activities in the Cooper Basin. Newport has built in exposure to significant potential growth at zero risk to shareholders as there is no time limit or expiry date on the GOR assets, and no cost to the Company to retain them.
Guidance
As reported in a Company News Release dated January 28th, 2021, Beach continue to achieve extraordinary exploration success (particularly in oil fields on ex-PEL 91), and have maintained very low production costs. In doing so, Beach has achieved both reserve replacement and positive cash flow. Also, Beach's exploration success, reported oil reserves, and low production costs have allowed it to limit spending without threatening future output from licenses in the Cooper Basin, over which the Company has its GOR.
Although Beach's production from ex-PEL 91 for their December 2020 quarter was below the previous quarter, Beach has made no changes to full year production guidance. Accordingly, Management is confident that shareholders of the Company should continue to be rewarded with dividend continuity. Beach plans to update their FY21 guidance with their half year results on February 15th, 2021."b]
Sam Dan
4 years ago
THE DIVIDEND IS PAID TODAY!!
("Newport" or "the Company") is pleased to announce the payment of its fourth quarterly cash dividend ("the Dividend") in 2020 of $0.03 per share to its shareholders of record at the close of business on November 26, 2020. As previously disclosed, the Company proposes to continue with the payment of quarterly dividend distributions, with the next payment scheduled for March, 2021.
Newport Exploration Ltd. logo (CNW Group/Newport Exploration Ltd.)
Annual Dividend and 2020 Share Price Performance
The $0.01/share dividend paid in September 2020 and the $0.03/share dividend paid today will be recorded in the Financial Year ended July 31, 2021, along with further dividends to be paid in early 2021. The Company's ability to return cash to shareholders is attributed to the recurring free cash flow generated by its Gross Overriding Royalty ("GOR") from licences in the Cooper Basin, Australia, operated by Beach Energy Ltd ("Beach").
Newport's dividend payout ratio, being the cash dividend per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks, particularly those in the energy sector. Since 2015 the Company has paid an average Annual Yield of 21%.
With Beach's exploration success, reported oil reserves and low production costs, Management is confident that shareholders of the Company should continue to be rewarded with dividend continuity.
With respect to the Company's share price performance, Newport has been able to regain the lost ground from the March 2020 low and since mid-November has been trading at prices above the 2020 opening value, and at 6-year highs.
Investors are cautioned that historical results are no guarantee of future performance.
M&A activity has increased in 2020 as many companies facing liquidity pressures become forced sellers of assets. Management continues to evaluate opportunities that arise and are confident that if necessary, funds could be raised through equity financing, and most importantly for shareholders, without affecting the current dividend policy.
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 Ltd ("Santos"), both major Australian oil and gas producers.
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 recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and outstanding and $5.8 million in the Treasury (comprised of cash, cash equivalents and short-term investments), and no debt."
Sam Dan
4 years ago
Dividend announced! I wonder if semi-yearly or annual would cut expenses so the amount could be increased. Just a thought.
" Newport Exploration Ltd ("Newport" or "the Company") is pleased to announce its third quarterly cash dividend ("the Dividend") of $0.01 per share to its shareholders of record at the close of business on August 26th, 2020. The Dividend payment date is September 10th, 2020.
Newport Exploration Ltd. Logo (CNW Group/Newport Exploration Ltd.)
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.
The COVID-19 pandemic exacerbated the ill-timed oil price war in early 2020 that resulted in the biggest drop in oil demand, as well as the biggest oil price drop, on record. This resulted in several producers shutting in wells, delaying projects and slashing investment in exploration and development. Global investment in future supply has collapsed, and returns for many producers have fallen below the cost of capital. Meanwhile, as reported in a Company News Release dated July 22nd, 2020, Beach continue to achieve exploration success (particularly on oil fields on ex PEL 91), and with their very low production costs, have achieved both reserve replacement and positive cash flow.
Management believes that based on Beach Energy Ltd.'s ("Beach") FY2020 Fourth Quarter Activities Report (dated 22nd July, 2020), recent exploration success and development of the licenses in the Cooper Basin over which the Company has its 2.5% Gross Overriding Royalty ("GOR"), shareholders should continue to be rewarded with dividend continuity. The move from an annual dividend to a quarterly dividend in 2020 has proved to be the right step as it has provided the Company with the flexibility to maintain its financial position during a very difficult period, while at the same time paying the full quarterly dividend as proposed, despite the exceptional level of uncertainty that still prevails.
The Company's strong balance sheet ensures that it has the ability to maintain regular quarterly dividend payments and possibly increase them in the future without taking on any debt or undertaking any equity financing.
Guidance
As stated previously by the Company (News Release dated July 22nd, 2020), it is material information for shareholders of Newport that Beach report that revenues from their gas sales cover their group operating and stay-in-business costs and that their reported break-even oil price is less than US$0/bbl. Also reported in the same Company News Release, Beach report that their crude sells at a material premium to Brent.
Newport has no control over operating decisions by Beach. Accordingly, this prevents the Company from commenting on Beach's current financial status and/or operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach. This recommendation is particularly relevant with regard to the current uncertainty in the global oil markets.
The Company receives its gross overriding royalty 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 permits are currently being operated and explored by Beach and Santos Ltd. ("Santos"), both major Australian oil and gas producers.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. Investors are cautioned that historical results are no guarantee of future results."
Sam Dan
4 years ago
Again wonderful news regarding royalties from Australia
"VANCOUVER, BC, July 22, 2020 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company") is pleased to provide an update on production and drilling activities on licenses in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty ("GOR"). This information was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its ASX Announcement, FY2020 Fourth Quarter Activities Report dated 22nd July, 2020.
In light of the recent turmoil in global oil markets as a result of a drastic decline in demand caused by the effects of COVID-19, the Company strongly advises shareholders to access the Beach Fourth Quarter Activities Report that demonstrates the position of Beach (the operator of the GOR licences going forward, which is in drastic contrast to many oil producers with higher operating costs and punishing debt loads. In their Announcement dated July 22nd, 2020, Beach report that they ended FY2020 with $50 million net cash and with access to $500 million in liquidity.
PRODUCTION
Beach report Western Flank quarterly production was 2.6 MMboe, unchanged on the prior quarter.
Beach report gross overage daily oil production from the Western Flank was 23.9kbbl, down 4% on the prior quarter. (NOTE: Western Flank includes the Company's GOR licences ex-PEL's 91, 106, and 107, as well as licenses ex-PEL's 92, 104 and 111, over which the Company does not have a GOR).
Beach report that oil production from ex-PEL 91 decreased only 4% to 1,805 kboe. Ex-PEL 91 continues to make a major contribution to Beach's operated oil production.
Another 8 new oil wells were brought online in the quarter, comprising six horizontal producers and two vertical producers.
Beach report that six artificial lift projects were completed in the quarter, with two additional projects completed subsequent to quarter end.
An ESP (Electrical Submersible Pump) installation at Bauer North 2 was completed at 1200 bpd.
Bauer 51 and Bauer 55 were both brought on-line with an initial rate of 800bopd. (As previously reported in a Company News Release dated April 22nd, 2020, Beach's longest McKinlay horizontal development well, Bauer-39, averaged approximately 2,900bbl/d on ESP through March).
At the end of Beach's fourth quarter seven oil wells are awaiting connection.
Beach report's Western Flank gas and gas liquids production was 568 kboe, up 16% on the prior quarter.
DRILLING
Highlights of the fourth quarter drilling by Beach on ex-PEL 91 were;
Seven horizontal oil development wells were successfully drilled on the Bauer Field, including the Bauer 55 horizontal development well which extended the Bauer North structure to the north.
Five appraisal wells were drilled across the Bauer North, Congony, Kalladeina and Kalladeina North Fields. Two producers were added;
Kalladeina 11 extended the Kalladeina Field limit to the south-east.
Bauer North 5 was cased and suspended as a future Birkhead formation producer.
GUIDANCE
As stated previously by the Company (News Releases dated March 30th and April 22nd, 2020), it is material information for shareholders of Newport that Beach report that revenues from their gas sales cover their group operating and stay-in-business costs and that their reported break-even oil price is less than US$0/bbl. Also reported in the same Company News Releases, Beach report that their crude sells at a material premium to Brent.
Newport has no control over operating decisions by Beach. Accordingly, this prevents the Company from commenting on Beach's operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach. This recommendation is particularly relevant with regard to the current uncertainty in the global oil markets.
The Company receives its gross overriding royalty from Beach, which is not a reporting issuer in Canada, thereforeNewport 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."
Sam Dan
5 years ago
Ho Hum another royalty from Beach, Australia.Money in the bank.
("Newport" or "the Company") is pleased to report its after tax 2.5% Gross Overriding Royalty ("GOR") payment from Beach Energy Ltd. ("Beach") for the February to April 2020 quarter.
Newport Exploration Ltd. (CNW Group/Newport Exploration Ltd.)
Gross royalty income for the quarter was AUD$3,364,809. The AUD$2,355,366 payment received by Newport is net of 30% withholding taxes (AUD$1,009,443) in accordance with the Australian Tax Office.
With the success of the drilling programs conducted by Beach for both oil and gas permits over which the Company holds its 2.5% GOR, and its low cost of oil production, as reported in a Company News Release dated April 22nd, 2020, the Company anticipates continuity of production and associated royalty revenues.
Newport has approximately CDN$8 million in its Treasury, comprised of cash, cash equivalents, and short-term investments, with no debt. As announced on May 13th, 2020, Newport's second quarterly dividend payment date is June 10th, 2020. After the dividend payment, the Company will have approximately CDN$6.9 million in its treasury.
The Company has a strong balance sheet and management is confident in its ability to maintain regular quarterly dividend payments as committed to in a News Release dated December 12th, 2019.
Sam Dan
5 years ago
HoHum another dividend announced
" ("Newport" or "the Company") is pleased to announce its second quarterly cash dividend ("the Dividend") of $0.01 per share to its shareholders of record at the close of business on May 28th, 2020. The Dividend payment date is June 10th, 2020.
Newport Exploration Ltd. (CNW Group/Newport Exploration Ltd.)
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.
Management believes that based on Beach Energy Ltd.'s ("Beach") recent exploration success, development of the licenses in the Cooper Basin over which the Company has its 2.5% Gross Overriding Royalty ("GOR"), and their reported production costs as previously reported by the Company (News Releases dated March 30th and April 22nd, 2020), shareholders should continue to be rewarded with dividend continuity.
Amid signs that the oil market is beginning to rebound from the unprecedented economic impact of Covid-19, many companies are struggling with heavy net debt loads and have stated that they will not be paying dividends this year, or will be paying them at a much lower level. As reported in a Company news Release dated March 10th, 2020, the Company's strong balance sheet ensures that Newport has the ability to maintain regular quarterly dividend payments with a reduced likelihood that the quarterly dividend payout would be cut during any sector downturn.
Despite the recent unprecedented plunge in oil prices, Newport shareholders have escaped the market downturn relatively unscathed. Although the Company is not immune from the effects of the Covid-19 pandemic and the global oil price collapse, management is confident that the Company will be able to maintain dividend payments in 2020 without taking on any debt or undertaking any equity financings. Investors are cautioned that historical results are no guarantee of future performance.
The move from an annual dividend to a quarterly dividend in 2020 has proved to be the right step as it has provided the Company with the flexibility to maintain its financial position during a very difficult period, while at the same time paying the full quarterly dividend as proposed, despite the exceptional level of uncertainty that prevails.
Newport's dividend payout ratio, being the cash dividends per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks. Furthermore, the Company has paid out more than 85% of after tax royalty receipts in dividends.
Guidance
As stated previously by the Company (News Releases dated March 30th and April 22nd, 2020), it is material information for shareholders of Newport that Beach report that revenues from their gas sales cover their group operating and stay-in-business costs and that their reported break-even oil price is less than US$0/bbl. As also reported in the same Company News Release, Beach report that their crude sells at a material premium to Brent.
Newport has no control over operating decisions by Beach and Beach is not subject to compliance with NI 51-102 Continuous Disclosure Obligations in Canada. Accordingly, this prevents the Company from commenting on Beach's current financial status and/or operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach. This recommendation is particularly relevant with regard to the current uncertainty in the global oil markets.
The Company receives its gross overriding royalty 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 permits are currently being operated and explored by Beach and Santos Ltd. ("Santos"), both major Australian oil and gas producers.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR.
The Company currently has 104,429,874 common shares issued and outstanding and $5.9 million in the Treasury, comprised of cash, cash equivalents and investments, and no debt."
Sam Dan
5 years ago
Company's .04 dividend protected.
" ("Newport" or the "Company") is pleased to provide shareholders and investors with an update on its quarterly dividend payment schedule as a result of recent global activity in the oil markets. As the Company's Gross Overriding Royalty ("GOR") business model relies upon the operations of Beach Energy Ltd ("Beach") in Australia, the Company is also providing a summary of a news release made by Beach dated March 27th, 2020.
The economic shut down from COVID-19 has resulted in a reduction in demand for crude oil and petroleum products worldwide. Also, failure of the OPEC + countries to agree on a reduction of supply by 1.5mmbpd and the subsequent price war between Russia and Saudi Arabia has plunged the global financial markets into turmoil. Crude oil, as a global commodity, has been extremely negatively affected during the past several weeks resulting in a great deal of uncertainty in the sector.
What is already certain is that significant capex cuts are being made by most producers, with energy companies cutting and deferring costs wherever they can. At the same time oil production from North American companies is declining, bank capital substantially reduced; in some cases banks are refusing energy companies access to credit facilities that were already in place, with other companies in breach of their debt covenants. As a consequence, dividends in energy companies are being slashed or suspended. This latter point is obviously of concern to shareholders and potential investors in Newport.
As stated in a Company News release dated, February 10th, 2020, "The Company's strong balance sheet ensures that Newport has the ability to maintain regular quarterly dividend payments with a reduced likelihood that the quarterly dividend payments would be cut in any sector downturn".
That statement is still valid and Management remains confident in the Company's ability to weather the current oil price disruption. After the recent dividend payment the Company has over $6 million in the treasury, no debt, and will not need to incur any debt or sell any assets in order to remain solvent and/or to pay dividends. Furthermore, the Company is well positioned to maintain a solid balance sheet even if the oil price stays at USD$25/bbl through 2020 and 2021 without the need to raise any additional capital. This was achieved in early 2016 when the low oil price at that time was followed by a V-shaped recovery. However, with uncertainty of such a recovery in 2020, and without knowing the medium to long term economic effects of the COVID-19 pandemic, it is difficult to predict what's next for the oil sector.
The Company's ability to maintain its dividend schedule is subject to Beach continuing to produce oil and gas from their Cooper Basin operations. Beach are extremely well positioned to weather the current oil price storm. In its news release of March 27th, 2020, entitled 'Business Update', Beach make several key points relevant to Newport's 2.5% GOR. These are summarized as follows:
At the end of February 2020 Beach had AUD$151M net cash, with access to over AUD$600M in liquidity via a AUD$450M committed revolving credit facility.
Western Flank oil assets are low cost producers, with field operating costs of approximately AUD$5/bbl.
Revenues from Beach's gas business cover all their group operating and stay-in-business costs; projected FY2021 free cash flow break-even oil price is less than US$0/bbl.
Beach's actual realized oil price in January and February 2020 was AUD$100/bbl.
Beach crude oil sells at a material premium to the Brent Crude oil price and the declining Australian dollar provides a further buffer against lower US dollar oil prices.
Beach is well positioned to manage an extended period of low oil prices, as well as the impact of the Covid-19 pandemic.
While its strong balance sheet means Beach is well placed to continue growth investment, in recognizing the current downturn, it is being prudent in targeting up to a 30% deferral in FY2021 capital investment relative to its previous guidance.
Obviously, Newport's management will re-examine the Company's dividend schedule on the basis of Beach's FY2020 Financial Results and any revised guidance. At the present time shareholders should be aware that Newport can support the current quarterly dividend schedule, and Beach is in an incredibly strong position to handle the current market disruption."
Sam Dan
5 years ago
And more GOOD news from Australia
" ("Newport" or "the Company") is pleased to report its after tax 2.5% Gross Overriding Royalty ("GOR") payment from Beach Energy Ltd. ("Beach") for the November 2019 to January 2020 quarter.
Gross royalty income for the quarter was AUD$3,602,465. The AUD$2,521,726 payment received by Newport is net of 30% withholding taxes (AUD$1,080,739) in accordance with the Australian Tax Office.
Newport has approximately CDN$7.2 million in its Treasury, comprised of cash, cash equivalents, and short-term investments.
With the success of the drilling programs conducted by Beach for both oil and gas permits over which the Company holds its 2.5% GOR, increased production in the Bauer field, and plans for exploration and development in FY2020, as reported in a Company News Release dated February 11th, 2020, the Company anticipates continuity of production and associated royalty revenues. The Company has a strong balance sheet with no debt and management is confident in its ability to maintain regular quarterly dividend payments as committed to in a News Release dated December 12th, 2019. As announced on February 10th, 2020, Newport's first quarterly dividend payment date is March 9th, 2020.
The Company continues to encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and potential production of all the licenses subject to the Company's GOR."
Sam Dan
5 years ago
More good news from Australia
" Newport Exploration Ltd ("Newport" or "the Company") is pleased to report on highlights of Beach Energy Ltd.'s ("Beach") Report for the Half Year ended 31st December, 2019, as reported in a news release by Beach on 11th February, 2020. The highlights reported in this news release relate to production and drilling activities on licenses in the Cooper Basin, Australia over which the Company has a 2.5% Gross Overriding Royalty ("GOR").
Beach Report - Highlights
Beach drilled 20 oil development wells on ex PEL 91, with a 100% success rate.
All wells were successfully cased and suspended as future producers.
12 horizontal oil development wells were drilled across the Bauer, Kalladeina, Chiton and Congony fields in ex PEL 91. All four fields are being appraised.
Bauer-39 initial production at greater than 2,000bpd.
Several new well locations identified.
Infrastructure approved to support increased production.
Appraisal Drilling on ex PEL 91
At the Bauer field, appraisal drilling activity added new oil production wells.
Field extensions have been identified in both the northern and southern parts of the field.
A phase 2 appraisal program is planned at Bauer to further resolve the structural extent of the field.
Bauer-39 was the longest horizontal well drilled in the field to date with a McKinlay section of 1517m in length with a 90% reservoir. Beach anticipate a 30 day Initial Production rate of greater than 2,000bopd on pump.
Bauer-39 indicated a lifted McKinlay structure in the south-east of the field.
Beach have dedicated an exploration rig to further appraise the Kalladeina/Congony fields.
Updated Reserves are to be reported at the end of Beach's FY2020, incorporating new development, appraisal and production data.
Development Drilling on ex PEL 91
Development drilling will target maintaining/increasing oil output in the second half of Beach's FY2020 with 10 additional lateral McKinlay wells at Bauer.
Beach propose to increase the use of horizontal drilling to optimize field development.
Western Flank Gas (ex PEL's 106, 107 and 91)
Beach report first half FY2020 production of 1.1MMboe, up 8% from the first half of FY2019.
Two successful wells were completed in FY2019.
Beach report that the inventory of wells is sufficient to keep the plant full for the next 12-18 months.
Beach propose to increase/optimize condensate output from the recently connected Lowry well that has a condensate gas ratio of 50bbl/MMscf.
On ex PEL 106 (Udacha) appraisal and development wells are planned in FY2021 to maintain deliverability into the Middleton gas facility.
On ex PEL 107 a drilling campaign is planned for FY2021.
Infrastructure Development
Following the successful appraisal drilling program at Bauer, Beach have approved additional work (estimated at ~AUD$30M) to include further artificial lift installations, water handling and intra-field flow lines and roads in order to support higher oil production rates beyond FY2020.
Guidance
With the success of the drilling programs conducted by Beach for both oil and gas permits over which the Company holds its 2.5% GOR, the Company anticipates continuity of production and associated royalty revenues. The Company has a strong balance sheet with no debt and management is confident in its ability to maintain regular quarterly dividend payments.
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 continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and potential production of all the licenses subject to the Company's GOR. Shareholders and potential investors may also be interested in Equity Research Reports on Beach such as those prepared by RBC Capital Markets."
Sam Dan
5 years ago
The start of regular quarterly payments announced
Newport Exploration Ltd ("Newport" or "the Company") is pleased to announce, its first quarterly cash dividend ("the Dividend") of $0.01 per share to its shareholders of record at the close of business on February 24th, 2020. The Dividend payment date is March 9th, 2020. "
"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.
Management believes that based on Beach Energy Ltd.'s ("Beach") recent exploration success and development of the licenses in the Cooper Basin over which the Company has its 2.5% Gross Overriding Royalty ("GOR"), shareholders should be rewarded with dividend continuity, potential dividend growth, as well as capital appreciation. Also, the Company's strong balance sheet ensures that Newport has the ability to maintain regular quarterly dividend payments with a reduced likelihood that the quarterly dividend payout would be cut during any sector downturn.
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the Cooper Basin in Australia. These permits are currently being operated and explored by Beach and Santos Ltd. ("Santos"), both major Australian oil and gas producers.
Newport's dividend payout ratio, being the cash dividends per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks and the Company has paid out more than 85% of after tax royalty receipts in dividends. Furthermore, the dividend payments have been covered by free cash flow with no dilution, incurring no debt, and without selling any assets. Investors are cautioned that historical results are no guarantee of future performance.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR.
The Company currently has 104,429,874 common shares issued and outstanding and $5.1 million in the Treasury, comprised of cash, cash equivalents and investments.
Sam Dan
5 years ago
More good news in an update from Australia royalties
" ("Newport" or "the Company") is pleased to provide an update on production and drilling activities on licenses in the Cooper Basin, Australia over which the Company has a 2.5% gross overriding royalty ("GOR"). This information was reported by Beach Energy Ltd ("Beach") (ASX: BPT) in its FY2020 Second Quarter Activities Report dated 29th January, 2020.
Production
Beach report that their quarterly oil production from ex PEL 91 increased 16%, with ex PEL 91 reporting production of 1,556kboe, up from 1,337kboe in Q1.
Beach's Western Flank gas liquids production from ex PEL's 91/106 was 545kboe, 6% higher than the prior quarter as two high-liquids content Lowry wells were connected and facility reliability was maintained at greater than 99%.
Field work continues to support higher liquids production rates.
Drilling
Highlights of Beach's drilling program include a 100% success rate from nine oil development wells across the Bauer, Kalladeina and Chiton fields in ex PEL 91. The wells comprised three vertical and six horizontal wells, including a horizontal well with the longest lateral length drilled by Beach in the Western Flank to date at 1,629 metres. At quarter-end, one horizontal well was drilling ahead.
At the Bauer Field in ex PEL 91, the Bauer Northwest-2 and -3 appraisal wells were cased and suspended as future producers. The results from these wells indicate a northerly extension of the Bauer Field. Utilizing production data from the wells, the potential for future appraisal and development drilling will be evaluated.
At the Arno Field in ex PEL 91, the Arno appraisal drilling campaign was completed with the Arno-3 well also being cased and suspended as a future producer.
Oil Price
Beach report that the average realized price of oil for the Quarter increased 3% to AUD$105.9/bbl.
Guidance
The Company receives its gross overriding royalty 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 is unable to forecast potential productivity for each well and continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd."
Sam Dan
5 years ago
"Newport Exploration grants options to buy 9.07M shares
Mr. Ian Rozier reports
GRANTING OF INCENTIVE STOCK OPTIONS
Newport Exploration Ltd. has granted incentive stock options to directors, officers and consultants to purchase 9,075,000 common shares of the company at an exercise price of 40 cents per share for a five-year term, expiring Dec. 26, 2024.
During the year ended July 31, 2019, six million warrants were exercised for proceeds of $840,000, and 6.1 million stock options were exercised for proceeds of $354,500. Total proceeds from the exercise of stock options and warrants amounted to $1,194,500 (net to the treasury)."
Maybe I am not appreciative enough of management BUT all they are doing is depositing the royalty payments from Australia. Hardly takes much of their time. Who are the directors, officers and consultants? Even if they were part of the team that was smart enough to obtain the royalties surely they have gained significant payment via salaries and dividends to be satisfied and no incentives are needed."
Sam Dan
5 years ago
"Newport Exploration grants options to buy 9.07M shares
Mr. Ian Rozier reports
GRANTING OF INCENTIVE STOCK OPTIONS
Newport Exploration Ltd. has granted incentive stock options to directors, officers and consultants to purchase 9,075,000 common shares of the company at an exercise price of 40 cents per share for a five-year term, expiring Dec. 26, 2024.
During the year ended July 31, 2019, six million warrants were exercised for proceeds of $840,000, and 6.1 million stock options were exercised for proceeds of $354,500. Total proceeds from the exercise of stock options and warrants amounted to $1,194,500 (net to the treasury)."
Maybe I am not appreciative enough of management BUT all they are doing is depositing the royalty payments from Australia. Hardly takes much of their time. Who are the directors, officers and consultants? Even if they were part of the team that was smart enough to obtain the royalties surely they have gained significant payment via salaries and dividends to be satisfied and no incentives are needed."
Sam Dan
5 years ago
New dividend policy. Hopefully will be minimum yearly dividend.
Newport Exploration Ltd ("Newport" or "the Company") is pleased to report on proposed corporate policy with respect to dividend payments to be made to shareholders of record in 2020 and beyond, together with a summary of Management's strategy.
Quarterly Cash Dividends to Commence in 2020
Going forward, Management proposes to pay a quarterly 'fixed distribution' dividend of $0.01 per share commencing in March, 2020, with subsequent dividend payments every three months. Notwithstanding their recent success and aggressive exploration and development plans proposed by Beach Energy Ltd ("Beach") for the Western Flank and Cooper Basin for FY2020, with the uncertainty that currently exists in the global oil and gas sector, the Company considers it prudent to fix the quarterly dividend at $0.01 per share. The Company reserves the right to increase the dividend payment from time to time. Sufficient funds will be retained in the treasury to maintain the dividend schedule in the event that royalty receipts are reduced for any reason.
Newport's Dividend Performance Since 2015
The following summarizes the Company's dividend performance since 2015;
During the year ended July 31, 2015, the Company paid a dividend of $0.10/share to shareholders of record as at April 2, 2015. The average share price for the year was $0.39, which resulted in an Annual Yield of 26%. Earnings Per Share ("EPS") for the year was $0.03, for an Annual Return of 333%.
During the year ended July 31, 2016, the Company paid a dividend of $0.10/share to shareholders of record as at June 23, 2016. The average share price for the year was $0.26, which resulted in an Annual Yield of 39%. EPS for the year was $0.02, for an Annual Return of 500%.
During the year ended July 31, 2017, the Company paid a dividend of $0.05/share to shareholders of record as at June 30, 2017. The average share price for the year was $0.27, which resulted in an Annual Yield of 19%. EPS for the year was $0.03, for an Annual Return of 167%.
During the year ended July 31, 2019, the Company paid a dividend of $0.05/share to shareholders of record as at October 12, 2018. The average share price for the year was $0.29, which resulted in an Annual Yield of 17%. EPS for the year was $0.06, for an Annual Return of 83%.
During the current fiscal year (July 31, 2020 yearend), the Company has already paid a dividend of $0.06/share to shareholders of record as at September 25, 2019. The average share price from August 1, 2019 to December 9, 2019 was $0.32, which resulted in a Yield of 19%.
Newport's dividend payout ratio, being the cash dividends per share of common stock divided by the earnings per share of common stock, compares favorably with that of other yield stocks and the Company has paid out more than 85% of after tax royalty receipts in dividends. Furthermore, the dividend payments have been covered by free cash flow with no dilution, incurring no debt, and without selling any assets.
Investors are cautioned that historical results are no guarantee of future performance.
Management Strategy
Management believes that stability, profitability, and paying shareholder dividends has been a responsible corporate strategy and recognizes that the Company's ability to pay over the long term is very important to existing shareholders and potential investors. The proposed dividend strategy will enable the Company to retain a margin of safety to maintain dividend distributions in the event of any sector downturn.
Management will continue to search for and identify other potential assets for acquisition but refuses to rush into buying anything just for the sake of it; this disciplined approach has resulted in market-beating returns in the long run compared to most other Canadian royalty paying energy stocks in recent years.
The Company has an advantageous business model with a Gross Overriding Royalty ("GOR") over permits in the Cooper Basin, Australia, with strong technical fundamentals and with excellent operators in Beach.
The Company has built in exposure to significant potential growth at zero risk to shareholders as there is no time limit or expiry date on the GOR assets, and no cost to retain them.
Management believes that based on the recent exploration success and development of the licenses in the Cooper Basin over which the Company has its 2.5% GOR, (Company News Release dated October 29th, 2019), shareholders will be rewarded with dividend continuity, potential dividend growth, as well as capital appreciation. Also, the Company's strong balance sheet ensures that the Company has the ability to maintain regular quarterly dividend payments with a reduced likelihood that the proposed quarterly dividend payout would be cut during any sector downturn.
Chu Chua
As stated previously (Company News Release dated March 6th, 2019) Management has maintained its 100% interest in the Chu Chua copper-gold deposit in Central British Columbia, Canada, and continues to believe that it will pay off for the Company and its shareholders as a result of entering into a joint venture to develop it, or by way of an outright sale, or by a corporate carve-out to a separate company for cash and/or shares. In Fiscal 2018 the Chu Chua project was impaired in accordance with International Financial Reporting Standards ("IFRS"). Proposed technical work on Chu Chua for 2019 has been deferred. However, Management continues to believe in the merits of the property and is prepared to continue with the Company's existing strategy and wait for better market conditions in the sector.
Potential Takeover / Asset Sale
The Company reported (Company News Release dated March 6th, 2019) that it was aware of rumors of a possible bid for the GOR and/or a possible hostile takeover attempt of the Company as a way of acquiring the GOR. No formal offer for the GOR was made. As shareholders are aware, hostile activist campaigns are increasingly 'homing in' on companies with valuable assets to acquire, cash flow to dispose of, and businesses to separate. Management and Directors control approximately 36m shares (35%) of the Company and these shareholdings align the interest of Management with all shareholders and should reassure shareholders and potential investors that Management is able to secure the long-term interest of all shareholders and not succumb to corporate predators hungry for quick returns. Management is confident that the majority of shareholders would support the Board in order to safeguard the Company's treasury, its assets, future cash flows, and shareholder dividends. Any offer, hostile or otherwise, for the Company and/or its assets, would be subject to an independent fairness opinion and shareholder approval.
In summary, Management propose to retain the Company's several GOR oil and gas assets in Australia as well as the Chu Chua copper-gold asset in Canada, and believe that stability, profitability, and paying shareholder dividends has been a responsible corporate strategy. The decision to move dividend payments to a quarterly dividend schedule going forward improves on this strategy.
Guidance
With the aggressive drilling and development program planned by Beach for both oil and gas permits, (Company News Release dated 29th October, 2019), and Beach's planned increase in production from Ex PEL 91 over which the Company holds its 2.5% Gross Overriding Royalty (Beach News Release dated August 19th, 2019), the Company anticipates continuity of production and associated royalty revenues.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and potential production of all the licenses subject to the Company's GOR.
Sam Dan
5 years ago
Another favourable royalty payment received and list of new
development wells contemplated byBeach Energy could be spectacular revenues in the future!
' ("Newport" or "the Company") is pleased to report that it has received its after tax 2.5% Gross Overriding Royalty ("GOR") payment from Beach Energy Ltd. ("Beach") for the three-month period August 2019 to October 2019.
Newport Exploration Ltd. (CNW Group/Newport Exploration Ltd.)
Gross royalty income for the period was AUD$3,144,168. The AUD$2,200,918 payment received by Newport of is net of 30% Australian withholding taxes (AUD$943,250) in accordance with the Australian Tax Office.
Newport has approximately CDN$5.3 million in the Treasury, comprised of cash, cash equivalents, and short-term investments.
In FY2020, Beach propose to invest AUD$250 million in their Western Flank operations with up to 77 oil wells to be drilled, comprising 36 exploration and appraisal wells and 41 development wells (including 17 horizontal wells). Beach anticipate drilling over 300 wells in the Western Flank over the next 5 years.
In the Cooper Basin, Beach propose to invest AUD$220 million in FY2020 with over 100 wells being planned with 4 rigs operating full time. The completion of Bauer-39, with a lateral length of over 1,600 metres and net pay over 1,300 metres has confirmed a further extension to the south-east of the Bauer field.
With the continued drilling success and results to date, Beach's plan for exploration and development in FY2020, and the anticipated continuity of royalty payments over the long term, the Company is in the process of reviewing its dividend policy going forward.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and potential production of all the licenses subject to the Company's gross overriding royalty.
Sam Dan
5 years ago
Significant increased royalties coming from development in Australia.
"BEACH REPORT INCREASED PRODUCTION, CONTINUED DRILLING SUCCESS, AND PLANS FOR FY2020 EXPLORATION AND DEVELOPMENT IN THE COOPER BASIN, AUSTRALIA
Newport Exploration Ltd. has provided an update on production, drilling activities, and proposed exploration and development on licences in the Cooper basin, Australia, over which the company has a 2.5-per-cent gross overriding royalty (GOR). This information was reported by Beach Energy Ltd. in its "FY2020 First Quarter Activities Report," dated Oct. 28, 2019, and in its "US and Canada Roadshow Presentation," dated Oct. 29, 2019, and reference should be made to Beach's website for interpretation and guidance.
PRODUCTION
Beach report, Western Flank quarterly production was 2.1 MMboe, 7% higher than the prior quarter and was driven by both strong gas and oil production. This is the fifth consecutive quarterly production increase reported by Beach.
Oil
Beach report, gross overage daily oil production from the Western Flank was 19.6 kbbl, up from 18.4 kbbl in the prior quarter. (NOTE: Western Flank includes the Company's GOR licences ex PEL's 91, 106, and 107, as well as licenses ex PEL's 92, 104 and 111, over which the Company does not have a GOR).
Beach-operated oil production increased 10% to 1,483 kboe.
A total of 11 new oil wells were brought online in the quarter, comprising six horizontal producers and five vertical producers.
The three Chiton horizontal oil wells drilled during the quarter on ex PEL 91 were brought on line in September following strong post drill results accelerating >45 kbbls into the quarter.
Artificial lift installations and conversions were undertaken at six wells and the conversion of producing well Bauer-29 on ex PEL 91 from a beam pump to an Electrical Submersible Pump ("ESP") resulted in a production rate of 3,000 bopd, more than double the beam pump rate from the well.
Beach continues to progress oil de-bottlenecking projects on the Western Flank to support the higher rates of oil production.
Gas
Beach report's Western Flank gas production was 514 kboe, 4% higher than prior quarter as the liquids-rich Lowry-3 and Lowry -4 both commenced production into the Middleton facility.
At quarter-end, Beach has four gas wells on the Western Flank that are cased and suspended for future production after the Middleton area ten-well gas drilling campaign added eight gas wells to inventory. Production potential from wells is now in excess of the facility capacity.
DRILLING
Oil
Beach report eleven operated oil development wells drilled at a 100% success rate. This included six horizontal development wells across the Bauer, Chiton and Congony fields in ex PEL 91.
Beach report seven operated oil appraisal wells were drilled across the Bauer, Arno and Hanson fields in ex PEL 91.
Appraisal drilling at Bauer and Chiton on ex PEL 91 successfully identified additional development well locations. This included Beach's first horizontal oil appraisal well, Chiton-8, which was cased and suspended as a future producer, proving the concept of geo-steering horizontal wells to collect appraisal information.
The three Chiton wells, Chiton-6, Chiton-7 and Chiton-8 on ex PEL 91 have resulted in better definition of the structure of the Chiton field, directly influencing the proposed vertical well development campaign currently scheduled for December 2019.
Bauer Southeast-2 and Bauer Southwest-2 appraisal wells on ex PEL 91 were both cased and suspended confirming increased field volume to the south.
Beach report that a key task in FY2020 was to undertake a further round of appraisal drilling at the Bauer field in order to establish the field limit and finalise their full field development program. Beach also report "very positive results at the Bauer Northwest-2 and Bauer North-2 appraisal wells on ex PEL 91, which intersected the McKinley formation six metres and eight metres high to prognosis respectively", and were well above pre-drill expectations. Beach report that re-mapping of the Bauer field will be completed at the end of the appraisal drilling program and that reserves will be updated at the end of FY2020.
Gas
Beach report four gas exploration/appraisal wells finished drilling during the quarter.
In ex PEL 106 successful wells Crockery West-1 and Ralgnal East-1 completed the 10 well Western Flank gas drilling campaign in the Middleton area. Eight wells were cased and suspended for future production.
PROPOSED EXPLORATION AND DEVELOPMENT FOR FY2020
Beach report that a record year of investment and drilling activity is planned for oil in the Western Flank in FY 2020, with approximately AUD $200M to be spent on exploration.
Up to 77 oil wells are proposed; 36 for exploration and appraisal, and 41 development wells (including up to 17 horizontal wells).
Beach propose a continued roll-out of the Bauer appraisal strategy in ex PEL 91, as well as follow-up drilling at Bauer, Hanson and in the Kalladeina-Congony complex.
Four step-out appraisal wells at Bauer discovered an easterly extension to the Bauer field and in FY2020 Beach plan on drilling 8 appraisal wells at Bauer and 15 development wells, including 7 horizontal wells.
Potential further appraisal drilling at Lowry and Middleton is proposed on 3 to 5 prospects as delineated by a Spoondylus 3-D seismic survey to extend the proven stratigraphic play, as well as to test new exploration
Sam Dan
5 years ago
Not surprised that a dividend is being paid but actually thought it would be .10.
"NEWPORT ANNOUNCES SPECIAL $0.06 CASH DIVIDEND
Newport Exploration Ltd.'s board of directors has declared a special cash dividend of six cents per share to its shareholders of record at the close of business on Sept. 25, 2019. The Dividend payment date will be September 30, 2019. 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.
The Board of Directors has declared the Dividend based on a persistently low value being placed on the Company's shares despite Beach Energy Ltd ("Beach") reporting both increased 2P reserves and increased production from the Western Flank Permits (which includes ex PEL's 91, 106 and 107) over which the Company holds its 2.5% Gross Overriding Royalty ("GOR"). The Company has an advantageous business model with a GOR over permits in the Cooper Basin with strong technical fundamentals and excellent operators. Management believes that based on the recent exploration and development of the licenses in the Cooper Basin as reported by the Company and Beach, shareholders will be rewarded with dividend continuity, further dividend growth, as well as capital appreciation.
Management has demonstrated good stewardship of shareholder capital and believes that stability, profitability, and paying an annual shareholder dividend has been a responsible corporate strategy which has enabled shareholders of Newport to avoid severely reduced or cancelled dividends, forced asset sales, share consolidations and a decline in share price that has occurred with several other Canadian energy companies in recent years.
The Company's ability to pay dividends is very important to existing shareholders and potential investors. The current strategy of the Company is to continue to maintain a strong balance sheet to help it weather potential industry downturns. Notwithstanding the substantial dividend yields since 2014, the Company retains a margin of safety to maintain dividend payouts, and reserves the right to increase dividend payments from time to time if Management considers it appropriate.
Any future cash dividend policy is subject to the Board's review, and decisions will be made based on royalty receipts at that time and always with the best interests of Newport shareholders in mind. This disciplined approach has resulted in market-beating returns compared to most other Canadian royalty paying energy stocks in recent years."
Sam Dan
5 years ago
SWE should have started this board years ago
The company holds a royalty on a MAJOR oil and gas field in Australia. A very significant flow of money has been established for a few years and the fields keep improving.
Today's news should trigger a dividend to shareholders.
"NEWPORT RECEIVES AUD$2,219,233 NET QUARTERLY ROYALTY PAYMENT
Newport Exploration Ltd. has received its after-tax 2.5-per-cent gross overriding royalty (GOR) payment from Beach Energy Ltd. for the three-month period May, 2019, to July, 2019. Gross royalty income for the period was AUD$3,170,333. The payment received by Newport of AUD$2,219,233 is net of 30% Australian withholding taxes (AUD$951,100).
The increase in net royalty income from AUD$1.66 million to AUD$2.22 million reflects the increased production and drilling success on permits and licenses in the Cooper Basin, Australia, over which the Company has its GOR (Company News Release dated July 24th, 2019), and the record production from the Bauer field (Company News Release dated August 21st, 2019).
Newport has approximately CDN$9.7 million in the Treasury, comprised of cash, cash equivalents, and short-term investments.
With the aggressive drilling and development program planned by Beach for both oil and gas permits (see Beach News Release dated August 19th, 2019), the Company has built in exposure to significant potential growth at zero risk to shareholders as there is no time limit or expiry date on the GOR assets, and no cost to retain them.
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos Ltd to keep current during exploration, development and potential production of all the licenses subject to the Company's GOR.
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