Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Sept. 10, 2021 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company") is pleased to announce the payment of its third quarterly cash dividend ("the Dividend") in 2021 of $0.02/share, to its shareholders of record at the close of business on August 26th, 2021. As previously disclosed, the Company proposes to continue with the payment of quarterly dividend distributions, with the next payment scheduled for December, 2021.
Management Strategy
As reported in a Company News Release dated February 10th, 2021, Management's dividend strategy has enabled the Company to retain a margin of safety to maintain dividend distributions despite the sector downturn in 2020, with the option of increasing the quarterly dividend at any time, as it did in December, 2020 with the tripling of the scheduled quarterly dividend amount. The Company's ability to return cash to shareholders is attributed to the recurring free cash flow generated by its 2.5% Gross Overriding Royalty ("GOR") from licences in the Cooper Basin, Australia, operated by Beach Energy Ltd ("Beach").
The recent increase in the oil price has helped offset Beach's decrease in production and has enabled the Company to double the second and third quarterly dividends of 2021, with the third dividend payment made today.
Guidance
Newport has an advantageous business model with a 2.5% GOR over permits in the Cooper Basin, Australia, operated by Beach. There is no time limit or expiry date on the GOR assets, and no cost to the Company to retain them.
Newport has no control over operating decisions made by Beach. Accordingly, this prevents the Company from commenting on Beach's operating plans going forward. The Company recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos Ltd ("Santos") in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. The Company receives its GOR from Beach which is not a reporting issuer in Canada, therefore Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101 - Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the Cooper Basin in Australia. These licences and permits are currently being operated and explored by Beach and Santos, both major Australian oil and gas producers.
The Company currently has 105,579,874 common shares issued and outstanding, and after this dividend to shareholders has approximately $4.9 million in the Treasury (comprised of cash, cash equivalents and short-term investments), and no debt.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy or adequacy of this news release.