Receives AUD$2,276,680 (gross)/AUD$1,593,676 (net) Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Nov. 30, 2021 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company") is pleased to report the receipt of its after tax 2.5% Gross Overriding Royalty ("GOR") payment from Beach Energy Ltd. ("Beach") for the August 2021 – October 2021 quarter. Gross royalty income for the quarter was AUD$2,276,680. The AUD$1,593,676 payment received by Newport is net of 30% Australian withholding taxes (AUD$683,004).
Company Financial Status
Newport has approximately CDN$6.0 million in its Treasury, comprised of cash, cash equivalents and short-term investments, with no debt. As announced on November 9th, 2021, Newport's fourth quarterly dividend payment date for 2021 is December 9th, 2021. After the dividend payment, the Company will have approximately CDN$3.9 million in its Treasury, and no debt.
The Company's management Strategy was summarized in a Company News Release dated February 10th, 2021. Notwithstanding the doubling of the second, third and fourth quarter 2021 dividends, the Company still retains a margin of financial safety to maintain scheduled dividend distributions.
"As anticipated, the continued decrease in production from the Bauer Field has had a negative impact on the GOR. However, with up to 15 oil exploration wells planned on the Western Flank, we remain optimistic about the potential for future drilling success on our GOR licenses and look forward to Beach's next drilling results", stated Ian Rozier, President and CEO of Newport.
About Newport
Newport has a 2.5% GOR over permits in the Cooper Basin, Australia, operated by Beach. There is no time limit or expiry date on the GOR assets, and no cost to the Company to retain them.
Newport has no control over operating decisions made by Beach. Accordingly, this prevents the Company from commenting on Beach's operating plans going forward. The Company recommends that shareholders and potential investors access material information relevant to the Company as released independently by Beach and Santos Ltd in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. The Company receives its GOR from Beach which is not a reporting issuer in Canada, therefore Newport is not able to confirm if the disclosure satisfies the requirements of NI 51-101 - Standards of Disclosure for Oil and Gas Activities, or other requirements of Canadian securities legislation.
The Company currently has 105,579,874 common shares issued and outstanding.
www.newport-exploration.com
www.beachenergy.com.au
www.santos.com