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.
Newport Exploration Ltd. Logo (CNW Group/Newport Exploration Ltd.)
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.
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.
