Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Feb. 12,
2024 /CNW/ - Newport Exploration Ltd ("Newport" or
"the Company") is pleased to announce its first quarterly cash
dividend ("the Dividend") in 2024 and to provide details with
respect to a change in the Quarterly Dividend paid to shareholders
going forward.
Effective December 2019 the
Company's Board of Directors ("the Board") approved a quarterly
fixed distribution $0.01 dividend.
The Company enacted this policy in March
2020, with subsequent dividend payments every three months.
As previously disclosed, the Company reserved the right to change
the dividend payment from time to time, which it has done on
occasion. The Company's Special Dividend and Quarterly Dividend
History is available on the Company's website. Since 2015 the
Company has distributed approximately $57.3M to December 31,
2024 in dividend payments to its shareholders. Investors are
cautioned that historical results are no guarantee of future
performance.
In light of several factors affecting the uncertainty and
potential volatility of cash flows derived from the Company's 2.5%
Gross Overriding Royalty ("GOR") licences going forward, the Board
has deemed it prudent to amend its dividend in 2024 to a quarterly
fixed distribution dividend of $0.005
per share. In making this decision, the Board considered recent
production data, as well as statistics and analysis released by the
World Bank, the International Energy Agency ("IEA"), and by the
Organization of Petroleum Exporting Countries ("OPEC"), on the
future of oil prices.
Against widespread expectations, oil prices remained lower than
anticipated in 2023. Brent Crude, the global oil benchmark (and the
price at which the Company's oil royalties are based) has hovered
around US$75-80 in 2023 compared with
US$120 per barrel in 2022. In
addition, a reduction in production from the Company's GOR licences
in Australia by the operator Beach
Energy ("Beach"), negatively affected the GOR payments received in
2023.
Oil prices have recently been volatile but were expected to
remain around US$80 per barrel in
2024. This was partially dependent on proposed OPEC production cuts
in the first quarter of 2024 to support oil prices to counter
record US production and weak Chinese demand. However, any further
escalation in the Israel-Gaza
conflict to include other Middle
East countries could lead to a dramatic increase in prices,
with the World Bank predicting that such a resulting supply
disruption could "drive prices….to between US$140 and US$157 a
barrel". The Company cannot speculate on geopolitical risk or the
subsequent effects on oil prices, but shareholders and potential
investors need to be vigilant in monitoring oil prices as higher
prices would likely lead to higher share prices of energy related
companies, and in the case of the Company, higher GOR payments.
"By amending our dividend policy, we can retain GOR revenues
as appropriate and act in a timely manner to any sudden windfall
GOR payments, and we will issue dividends accordingly.", stated
Ian Rozier, President and CEO of the
Company.
The first quarterly cash dividend payment of 2024, at
$0.005 per share payable to its
shareholders of record at the close of business on February 26, 2024, will be made on March 12, 2024. The Dividend, fully approved by
the Board, is not subject to any changes and has been designated as
an "eligible dividend" for Canadian Income tax purposes.
About Newport
Newport has a 2.5% Gross
Overriding Royalty ("GOR") over permits in the Cooper Basin,
Australia, operated by Beach
Energy Ltd ("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 and approximately $1.8
million in the Treasury (comprised of cash, cash equivalents
and short-term investments), and no debt. The Company expects to
receive the next royalty payment from Beach prior to the dividend
payment on March 12th,
2024.
www.newport-exploration.com
www.beachenergy.com.au
www.santos.com
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.
Cautionary Statement on
Forward-Looking Information
This news release is intended to provide readers with a
reasonable basis for assessing the future performance of the
Company. The words "believe", "should", "could", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements may pertain to assumptions regarding the
price of oil and fluctuations in currency markets (specifically the
Australian dollar) and future dividend payments. Forward-looking
statements are based upon a number of estimates and assumptions
that, which are considered reasonable by the Company, are
inherently subject to business, economic and competitive
uncertainties and contingencies. Factors include, but are not
limited to, the risk of fluctuations in the assumed prices of oil,
the risk of changes in government legislation including the risk of
obtaining necessary licences and permits, taxation, controls,
regulations and political or economic developments in Canada, Australia or other countries in which the
Company carries or may carry on business in the future, risks
associated with developmental activities, the speculative nature of
exploration and development, and assumed quantities or grades of
reserves. Readers are cautioned that forward-looking statements are
not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those acknowledged
in such statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
© 2024 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.