Trading Symbol: NWX
(TSX-V)
VANCOUVER, BC, Aug. 9, 2024
/CNW/ - Newport Exploration Ltd ("Newport" or "the Company")
provides an update with respect to a change in its Quarterly
Dividend Policy.
Effective December 2019 the
Company's Board of Directors ("the Board") approved a quarterly
fixed distribution of $0.01 per
share. 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.
To date the Company has distributed approximately $58M in dividend payments to its shareholders.
Investors are cautioned that historical results are no guarantee of
future performance.
As reported in a Company News Release dated February 12, 2024, 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 deemed it prudent to amend its
dividend in 2024 to a quarterly fixed dividend distribution of
$0.005 per share. In making this
decision, the Board had 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.
As stated by Ian Rozier,
President and CEO of the Company in the February 12, 2024 News Release, "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."
Although, Brent Crude, the global oil benchmark (and the price
at which the Company's oil royalties are based) has traded around
US$80 in 2024 (compared with
US$120 per barrel in 2022), a
reduction in production from the Company's GOR licences in
Australia by the operator Beach
Energy ("Beach"), has negatively affected the Company's confidence
in future GOR payments to be received for the remainder of
2024. Beach is currently conducting a review of their assets
and until such time they announce their plan for drilling and/or
further development of the Company's GOR licences, the Board of
Directors of the Company have decided to postpone the next dividend
payment pending the announcement of Beach's future plans.
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 $1.6
million in the Treasury (comprised of cash, cash equivalents
and short-term investments), and no debt.
info@newport-exploration.com
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.
