Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Dec. 13,
2024 /CNW/ - Newport Exploration Ltd ("Newport" or
"the Company") is pleased to announce that the nominees listed in
the management Information Circular for the 2024 Annual General
Meeting ("AGM") of Shareholders were re-elected as directors of
Newport. These AGM results indicate strong support for
the management and Board of Directors (the "Board") of the
Company.
Subsequent to the AGM, the Board re-appointed Ian Rozier, as Chief Executive Officer and
Barbara Dunfield, as Chief Financial
Officer. The Board thanks Mr. Rozier and Ms. Dunfield for
their continued support and expertise.
Dividend
In December 2019, the Company's
Board approved a quarterly fixed dividend distribution commencing
in March 2020. On February 12,
2024, the Company announced it had amended the fixed
distribution from $0.01 per share, to
$0.005 per share due to the
uncertainty and potential volatility of cash flows derived from the
Company's 2.5% Gross Overriding Royalty ("GOR") licences due to
production data, as well as world economic factors.
On August 9, 2024, due to
continued downward pressure on Brent Crude, the global oil
benchmark (and price at which the Company's oil royalties are
based) and, lack of drilling and/or further development plans by
Beach Energy Ltd ("Beach") on the Company's GOR licences, the
Company announced the postponement of its next dividend payment
pending the announcement of Beach's future plans.
Since August 9th, the Company has
reviewed public correspondence by Beach on its GOR licences (with
their latest report disseminated on October
18, 2024) and noted that it did not provide any specific
plans outside of the continued rework of existing data sets while
exploration inventory would be refreshed for potential exploration
and appraisal drilling activity in Beach's FY26.
As a result of the lack of specific plans by Beach, decreased
oil production and depressed Brent Crude oil prices, the Directors
made the decision to terminate the Company's quarterly fixed
dividend distribution and revert back to its previous policy of
paying Special Dividend Payments. The Board and
Management believe reverting back to Special Dividend payments is
the most prudent way to preserve the Company's treasury and
long-term shareholder value.
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.
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
Beach's drilling plans, 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.
