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."