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Newport Exploration Ltd V.NWX

Alternate Symbol(s):  NWXPF

Newport Exploration Ltd is a Canada-based natural resource company. The Company is engaged in the acquisition and exploration of resource properties. In addition, the Company holds a 2.5% gross overriding royalty interest (the Royalty) on any hydrocarbons produced on certain petroleum exploration and production licenses in Australia. These include licenses being operated and explored by Beach Energy Ltd. (Beach) and Santos Ltd. (Santos), both major Australian oil and gas producers. The Company’s mineral exploration project is the Chu Chua Copper Gold Deposit (Chu Chua), which is located approximately 30 kilometers north of Kamloops, British Columbia. The deposit is a Cyprus-type volcanogenic massive sulfide body hosted in two steeply dipping lenses of massive pyrite-chalcopyrite and magnetite up to 40 meters (m) thick, with a known strike length of 400 m and a known depth of 250 m.


TSXV:NWX - Post by User

Bullboard Posts
Post by blackgold14on May 25, 2014 4:37pm
177 Views
Post# 22596629

royalty should triple to $45 million (40 cents a share) /yr

royalty should triple to $45 million (40 cents a share) /yr
Lookintoretire. You are right man. I didn't explain myself fully in the prior post. So let me clear it up. I think with the added capacity at Bauer to 50,000 barrels (oil and water), plus the tie in of huge gas wells in PEL 106, plus additional shut-in production on the permits, plus allowing for additional discoveries in the huge and prolific permit areas, we will see at least a doubling of production, but probably a tripling of production within 2 years. That means that the royalty that NWX is currently receiving which is $3.8 million a quarter or $15 million a year, will increase to $45 million a year or $0.40 per share fully diluted. Is this projection too optimistic ? Not really when you consider how quickly the Drillsearch has gone from zero production to 13,000 barrels a day oil (that's just 8 wells) in the Cooper Basin permits covered by the NWX royalty in the last two years. Exploration and development is now accelerating in a major way which means exponential growth. Getting 13,000 barrels a day production from a $7.5 million investment is not just good, it's exceptional. This stock is so undervalued it's not funny. Should be trading ABOVE $2.00 a share NOW based on CURRENT production and FULLY-DILUTED shares. As always, if you're not happy, please sell your shares so I can continue to add to my position. I am not desperate for more, but I'm gladly picking more cheap stock like I did this past few weeks.
Bullboard Posts