Trading Symbol: NWX (TSX-V)
VANCOUVER, Dec. 3, 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 August 2019 to October 2019.
Gross royalty income for the period was AUD$3,144,168. The AUD$2,200,918 payment received by Newport of is net of 30% Australian withholding taxes (AUD$943,250) in accordance with the Australian Tax Office.
Newport has approximately CDN$5.3 million in the Treasury, comprised of cash, cash equivalents, and short-term investments.
In FY2020, Beach propose to invest AUD$250 million in their Western Flank operations with up to 77 oil wells to be drilled, comprising 36 exploration and appraisal wells and 41 development wells (including 17 horizontal wells). Beach anticipate drilling over 300 wells in the Western Flank over the next 5 years.
In the Cooper Basin, Beach propose to invest AUD$220 million in FY2020 with over 100 wells being planned with 4 rigs operating full time. The completion of Bauer-39, with a lateral length of over 1,600 metres and net pay over 1,300 metres has confirmed a further extension to the south-east of the Bauer field.
With the continued drilling success and results to date, Beach's plan for exploration and development in FY2020, and the anticipated continuity of royalty payments over the long term, the Company is in the process of reviewing its dividend policy going forward.
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 may pertain to assumptions regarding Beach's drilling plans, 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.
SOURCE Newport Exploration Ltd.