Trading Symbol: NWX (TSX-V)
The Dividend, fully approved by the Board of Directors, is not subject to any changes and has been designated as an "eligible dividend" for Canadian income tax purposes.
The COVID-19 pandemic exacerbated the ill-timed oil price war in early 2020 that resulted in the biggest drop in oil demand, as well as the biggest oil price drop, on record. This resulted in several producers shutting in wells, delaying projects and slashing investment in exploration and development. Global investment in future supply has collapsed, and returns for many producers have fallen below the cost of capital. Meanwhile, as reported in a Company News Release dated
Management believes that based on Beach Energy Ltd.'s ("Beach") FY2020 Fourth Quarter Activities Report (dated 22nd July, 2020), recent exploration success and development of the licenses in the
The Company's strong balance sheet ensures that it has the ability to maintain regular quarterly dividend payments and possibly increase them in the future without taking on any debt or undertaking any equity financing.
Guidance
As stated previously by the Company (News Release dated
Newport has no control over operating decisions by Beach. Accordingly, this prevents the Company from commenting on Beach's current financial status and/or operating plans going forward. As always, the Company continues to strongly recommend that shareholders and potential investors access material information relevant to the Company as released independently by Beach. This recommendation is particularly relevant with regard to the current uncertainty in the global oil markets.
The Company receives its gross overriding royalty from Beach, which is not a reporting issuer in
About Newport
Newport holds a 2.5% GOR on several oil and gas licences and permits in the
The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Santos in order to keep current during exploration, development and potential production of all the licences subject to the Company's GOR. Investors are cautioned that historical results are no guarantee of future results.
The Company currently has 104,429,874 common shares issued and outstanding and
Neither the
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) 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
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.
© 2020 Newport Exploration Ltd.
SOURCE
© Canada Newswire, source