Vancouver, British Columbia, September 3rd, 2019. 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 May 2019 to July 2019.
Gross royalty income for the period was AUD$3,170,333. The payment received by Newport of AUD$2,219,233 is net of 30% Australian withholding taxes (AUD$951,100).
The increase in net royalty income from AUD$1.66 million to AUD$2.22 million reflects the increased production and drilling success on permits and licenses in the Cooper Basin, Australia, over which the Company has its GOR (Company News Release dated July 24th, 2019), and the record production from the Bauer field (Company News Release dated August 21st, 2019).
Newport has approximately CDN$9.7 million in the Treasury, comprised of cash, cash equivalents, and short-term investments.
With the aggressive drilling and development program planned by Beach for both oil and gas permits (see Beach News Release dated August 19th, 2019), the Company has built in exposure to significant potential growth at zero risk to shareholders as there is no time limit or expiry date on the GOR assets, and no cost to retain them.
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 GOR.
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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). 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.