LONDON (Alliance News) - New World Oil and Gas PLC shares dropped on Tuesday after it said it has relinquished three licences in Denmark after they expired.
New World shares were down 10% to 0.0650 pence per share on Tuesday afternoon.
The company has relinquished the Danica Jutland licences 1/09 and 2/09 and the Danica Resources licence 1/08 after they all expired Tuesday. New World Oil held a 25% stake in all three of the licences alongside its partners Danica Jutland ApS, Danica Resources ApS and the Danish North Sea Fund.
New World decided to relinquish the licences after failing to secure a farm-in partner and said it has booked a full impairment reserve on its balance sheet as at June 30.
"Despite a comprehensive analysis of the licences confirming valid prospectivity, in the current oil price environment and in light of the early stage of development we believe it is the right decision to relinquish the Danish licences," said Chairman Chris Einchcomb.
"With funding recently secured we are well placed to pursue projects that provide near-term cash flow as well as progress our on-going farm-in discussions for our Blue Creek Project in Belize which is at a drill-ready stage. We will continue to update shareholders on our progress as and when negotiations mature," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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