June 21st, 2024. Newport Exploration Ltd (“Newport” or “the Company”) provides an update for licenses in the Cooper basin, Australia, over which the Company has a 2.5% gross overriding royalty (“GOR”). This information was reported by Beach Energy Ltd (“Beach”) (ASX:BPT”) in a recent “Strategic Review Outcomes Presentation” that covered Beach’s entire Australian operations.
In the Presentation Beach propose a “Refresh” of their strategic plan which includes their plans for their Western Flank oil exploration projects and the potential for a drilling campaign in FY26, the Western Flank considered as being one of their catalysts for organic growth. For FY25, Beach’s production outlook for the Western Flank considers a “natural field decline of up to 40%” while their drilling inventory is being “refreshed”.
As the Company is not involved in the operation of the licences over which it has the GOR, it is unable to provide any further guidance on Beach’s plans for further drilling on the licences or anticipated oil production. Accordingly, the Company proposes to review its options going forward with respect to the issuance of future dividends which are based on actual quarterly GOR revenues.
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.
For further information contact;
Ian Rozier, M.Sc.,
P. Eng (Non-Practising)
Director and Chief Executive Officer
+1 604 685 6851