Trading Symbol: NWX (TSX-V)
VANCOUVER, March 6, 2019 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to report that it has
received its after tax 2.5% Gross Overriding Royalty ("GOR")
payment from Beach Energy Ltd. ("Beach") for the three-month period
November 2018 to January
2019.
Gross royalty income for the period was AUD$2,048,362. The
payment received by Newport of
AUD$1,433,853 is net of 30% Australian withholding taxes
(AUD$614,509) in accordance with the Australian Tax
Office. Additionally, the Company has received $157,066 from the exercise of 1,121,900 share
purchase warrants and now has 104,185,774 common shares issued and
outstanding and approximately CDN$7
million in the Treasury.
The Company has been able to return special dividends to its
shareholders of between 15% and 25% for the previous four years and
most shareholders now regard the Company as a 'dividend stock' with
an expectation of an annual dividend. With the increasing diversity
of production from the various GOR permits, and dependent upon
their maturity profile, the Company may consider making quarterly
dividends.
Newport has GOR interests in
several oil and gas assets in Australia other than ex PEL 91, ex PEL 106 and
the Udacha Block that are currently producing. The Company has held
these interests since 1998 and, as it believed in the potential for
oil discoveries for over 15 years before the recent success,
Management believes that the gas potential of the permits may also
be realized (Company News Release dated February 14, 2019). Industry research reports
such as those issued by JP Morgan and RBC, along with recent
disclosure by Beach on gas production from the GOR permits, further
vindicates Managements' long held belief in their gas potential.
The potential for gas is being explored by Beach and Santos Ltd
("Santos"), Australia's largest
gas producer, and JP Morgan is positive on both Beach and Santos.
(Reference: JP Morgan's Asia Pacific Equity Research report dated
21 January 2018 entitled "Australian
Energy and Utilities"). With the aggressive drilling program
planned by Beach for both oil and gas on the permits (News Release
dated February 14, 2019), the Company
has built-in exposure to significant potential growth both in the
oil and the gas sectors in Australia. Most importantly, this growth
potential comes at zero risk to shareholders as there is no time
limit or expiry date on the GOR assets and there is no cost to
retain them.
Much as it maintained its interest in the GOR assets despite
over a decade of no exploration or development prior to the
conversion into the GOR, Management has maintained its 100%
interest in the Chu Chua copper-gold deposit in Central British Columbia, Canada, and believes
that it will also pay off for the Company and its shareholders.
This could be as a result of entering into a joint venture to
develop it, by way of an outright sale, or by creating a subsidiary
public company and vending the project into it for cash or shares.
The Company anticipates conducting technical work on Chu Chua
during 2019 in order to determine an up-to-date valuation for the
asset. This work will not affect the Company's ability to make
shareholder dividends.
The Company reports that it is aware of rumors of a possible bid
for the GOR and/or a possible hostile takeover attempt of the
Company as a way of acquiring the GOR. No offer for the GOR would
be considered until the Company has had an independent valuation
done on the GOR assets, and any such offer would be subject to a
fairness opinion and shareholder approval. In the event of any
hostile takeover attempt, the Company is confident that the
majority of shareholders would support the Board in order to
safeguard the Company's treasury, its future cash flows,
shareholder dividends and assets.
In summary, the Company proposes to retain its several GOR oil
and gas assets and the Chu Chua copper-gold asset and believes that
stability, profitability, and paying regular shareholder dividends
has been a responsible corporate strategy. This has enabled
shareholders of Newport to avoid
severely reduced or cancelled dividends, forced asset sales, share
consolidations and a catastrophic decline in share prices that have
occurred with several other Canadian energy companies, as
highlighted in the "Energy Summary for January 23, 2019", in Stockwatch.
The Company continues to strongly encourage shareholders and
potential investors to access information released independently by
Beach and Santos Ltd to keep current during exploration,
development and potential production of all the licenses subject to
the Company's gross overriding royalty.
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 are statements and information regarding
possible developments that are based on assumptions about future
economic conditions and courses of action. Forward looking
statements in this release include, but are not limited to,
statements regarding future dividends, the gas potential of the
permits, and the future development or disposition of the Chu Chua
mineral property. Forward-looking statements are based upon a
number of estimates and assumptions that, while 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.
© 2019 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.