LONDON (Alliance News) - New World Oil & Gas PLC Tuesday said that the government of Belize has approved its application for the third renewal period of the Blue Creek Production Sharing Agreement.
The oil and gas exploration and development company, with operations on Belize and Denmark, said the approval extends the term of the PSA in the Peten Basin of Belize until October 2015.
New World said that under the terms of the agreement, it has committed to completing a re-evaluation of its 2D seismic data, a review of its drilling results and core study and to carry out geochemical analyses of oil samples at the site.
The company said that in the second year of the renewal period, it will either drill one exploration well or drop the licence, and the company is continuing to seek a farm-in or joint venture partner to share the exploration of the Blue Creek acreage.
New World Oil & Gas shares were down 9.1% to 0.750 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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