Another favourable royalty payment received and list of new
development wells contemplated byBeach Energy could be spectacular revenues in the future!
' ("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.
Newport Exploration Ltd. (CNW Group/Newport Exploration Ltd.)
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.
