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NEWPORT RECEIVES AUD$748,151 (GROSS)/AUD$523,706 (NET) QUARTERLY ROYALTY PAYMENT

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NEWPORT RECEIVES AUD$748,151 (GROSS)/AUD$523,706 (NET) QUARTERLY ROYALTY PAYMENT

Executive Summary

Newport Exploration Ltd announced the receipt of its quarterly royalty payment of AUD$523,706 (net) from Beach Energy Ltd for the November 2024 through January 2025 reporting period. The payment represents proceeds from Newport's 2.5% gross overriding royalty interest, which generated gross income of AUD$748,151 before applicable taxes and deductions.

The royalty structure demonstrates Newport's strategic positioning as a royalty holder rather than an operator, providing passive income from ongoing production activities managed by Beach Energy. The quarterly payment schedule indicates consistent production levels from the underlying assets, suggesting stable operational performance during the reporting period.

For Newport shareholders, this royalty income represents a predictable cash flow stream that requires minimal capital investment or operational oversight from the company. The royalty model allows Newport to benefit from energy production while Beach Energy handles all operational responsibilities and associated risks. This arrangement is particularly attractive in the current energy market environment where operational companies face increased costs and regulatory pressures.

The timing of this announcement, coming at the end of February, aligns with typical quarterly reporting cycles for Australian energy companies. The continued receipt of royalty payments indicates sustained production activity and validates Newport's royalty investment strategy as a means of generating shareholder returns in the energy sector.
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