LONDON (Alliance News) - New World Oil and Gas PLC Monday said it has secured an extension to its work programme commitment deadlines for licence 1/08 at the Danica Resources project in Denmark until January 31, 2015, although it has decided to relinquish most of the offshore licences it holds in the country.
The oil and gas exploration and development company said the extension was discussed with Danica Resources ApS and the Danish North Sea Fund, the company's 20% full-paying partner, and approved by the Danish Energy Agency, following a previous extension announced on October 1, 2013.
The company said that under the terms of the new licence, it will commit to a new surface geochemical survey over a minimum of two prospects at the site to clarify the existing prospect inventory, and will reprocess 24 2D seismic lines to integrate the interpretation with its existing data.
In addition, New World said it will commit to acquire 3D seismic data over one or more prospects by the new deadline, so that it can commit to drill at least one exploration well by March 31, 2016, or relinquish the licence.
The company said that the Danish Energy Agency would be prepared to approve an application for a further extension if the licence is kept.
New World said that it has also requested to relinquish a "greater part" of the offshore part of the licence area, deciding that in would rather focus on the onshore part before investing in offshore exploration.
"This licence extension and the agreed work commitments will be very beneficial to our on-going discussions with potential farm-in partners," Chief Executive William Kelleher said in a statement.
New World Oil & Gas shares were up 3.7% to 0.700 pence on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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