LONDON (Alliance News) - New World Oil and Gas PLC posted a narrowed loss in what it called a "challenging" 2013, as its drilling campaign at the Blue Creek Project in Belize failed to confirm commercial quantities of movable oil.
The company posted a pretax loss of USD11.9 million, narrowed from a loss of USD18.7 million in the previous year, as the company wrote off less dry-well costs. In 2012 the company wrote off USD14.4 million in dry-well costs. It is not revenue producing.
Despite its set back at Blue Creek the company remains confident that its four remaining drill-able prospects have the potential to contain oil. It has a 100% working interest in the project and is continuing to seek a partner or outside investment to help share the costs as it continues its exploration work.
New World Oil and Gas entered into a partnership with Niel Petroleum S.A to acquire a near term producing asset. Although the company was originally scheduled to complete this partnership in September, it has been delayed as Niel has not made its USD25 million investment available. However, it has paid USD250,000 to offset the delays and has placed USD4.8 million in escrow pending completion of the transaction.
New World Oil and Gas closed its Houston office, and said that going forward it will be sharing office space with Niel in Geneva and Dubai.
The companies have been exploring potential markets, and after the year-end completed an agreement with a Kuwaiti company. In May it signed a share purchase agreement to potentially take a 49% stake-hold and a 60% economic interest in Al-Maraam to develop its opportunities in the oil and gas sector in Kuwait.
The company noted that if it can complete its agreement with Al Maraam it will have access to a major oil producing region.
Although the company's primary objective remains becoming a multi-project oil and gas exploration and production company, however it is shifting its emphasis to seeking sustainable revenues from cash generating opportunities.
Shares in New World Oil and Gas last traded flat at 0.650 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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