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Mar 19, 2015
NEWPORT EXPLORATION ANNOUNCES SPECIAL DIVIDEND
Vancouver, Canada March 19th, 2015 - Newport Exploration Ltd ("Newport" or "the Company") is pleased to announce that the Board of Directors has declared a special cash dividend ("the Dividend") of $0.10 per share to the holders of the Company's common shares.
This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.
The Board of Directors has made the decision to declare this dividend based on the persistently low value being placed on the Company's shares despite several successful wells drilled in PEL 91 that should ensure ongoing royalty payments in the near to mid-term, as well as a lack of suitable investment opportunities in the currently volatile energy market. The payment of future cash dividends is subject to the Board's determination to react to actual future market conditions in the interests of Newport shareholders.
Distribution of dividends
This cash dividend will be distributed to Newport shareholders pursuant to the TSX Venture Exchange's due bill trading policy. Pursuant to that policy:
• the record date (the "Record Date") to determine shareholders of Newport entitled to receive the Dividend is April 2nd, 2015;
• the due bill trading date will be March 31st, 2015 (two trading days prior to the Record Date);
• the payment or distribution date (the "Distribution Date") will be April 15th, 2015;
• the ex-distribution date will be April 16th, 2015 (the next trading day following the Distribution Date); and
• the due bill redemption date will be April 20th, 2015 (the second trading day following the ex-distribution date).
For clarification, "due bills" will represent the Dividend that Newport shareholders will be entitled to receive. The due bills will be deemed to be attached to Newport's common shares two trading days prior to the Record Date, and will continue to be attached to Newport's shares until the end of the Distribution Date. Accordingly, Newport's shares will trade on a "due bill" basis from March 31st, 2015 until close of trading on April 15th, 2015 (the "Due Bill Period"). This means that persons who sell their Newport shares during the Due Bill Period shall also sell their entitlement to the dividend distribution to the purchasers of shares. Newport's shares will commence trading on an ex-distribution basis (i.e. without an attached "due bill" entitlement to the distribution) from the opening of trading on April 16th, 2015 (i.e. the next trading day after the Distribution Date). The due bills will be redeemed on April 20th, 2015 once all trades with attached due bills entered during the Due Bill Period have settled.
Newport holds a 2.5% gross overriding royalty on several oil and gas permits in the Cooper Basin in Australia. These include permits currently being operated and explored by Beach Energy Ltd. ("Beach"), Drillsearch Energy Limited ("Drillsearch") and Santos Ltd., all major Australian oil and gas producers. Recent exploration has been focused on PEL 91 and PEL106 and several successful wells have been drilled and reported as being future producers. The Company continues to strongly encourage shareholders and potential investors to access information released independently by Beach and Drillsearch in order to keep current during an active period in the exploration and development of these licences.
The Company currently has 79,279,874 common shares issued and outstanding and over $21 million in the treasury.
For further information contact:
Ian Rozier, Director and Chief Executive Officer
+1 604 685 6851
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, which contains certain forward-looking statements, is intended to provide readers with a reasonable basis for assessing the financial performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "should", "could", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. These forward-looking statements pertain to assumptions regarding the price of oil, fluctuations in currency markets (specifically the Australian dollar and the U.S. dollar), the future funding of the Company's projects, and the future development of the Company's projects. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, which considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, the risk of fluctuations in the assumed exchange rates of currencies that directly impact the Company, such as the Canadian dollar, Australian dollar and U.S. dollar, the risk of fluctuations in the assumed prices of oil, the risk of changes in government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, 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, including the risk of obtaining necessary licences and permits, and assumed quantities or grades of reserves. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. 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.