LONDON (Alliance News) - New World Oil & Gas PLC Monday said it has continued to try to reduce the company's cost base and chase down money owed to the company, but said it has not achieved any progress to its operations in Belize since October last year.
The company underwent significant change in the second half of 2015 after a shareholder action group called for an extraordinary general meeting which resulted in Adam Reynolds and Nicholas Lee being appointed to the board as directors whilst Peter Sztyk, the chief executive at the time, was ousted.
NWOGaction, the action group that requested the meeting and proposed the board changes, was led by Shareprophets' writer Benjamin Turney, who was representing a group of around 46 New World Oil shareholders.
News from the company since the board changes made in late November has been limited.
On Monday, New World Oil said it has been working to further reduce the company's cost base "from historic levels" and focused on conserving its cash balance whilst pursuing money owed to the business.
New World Oil is owed EUR1.0 million from Al-Maraam Al-Ahliya Co for General Trading and Contracting LLC following a failed deal last year. New World had signed a sales and purchase deal with the company to take a stake in Al-Maraam at a corporate level and made an initial payment before the deal fell through.
Last year, New World Oil said it was "hopeful" of recovering the funds from Al-Maraam, but conceded at the time there was no guarantee the funds would be recovered. With no progress made since then, the chances of recovering the funds looks even more doubtful.
New World Oil Monday also said there has been "no new developments" since late October with potential investors and contractors in regard to Belize, where the company's Blue Creek onshore oil project lies.
Back in October, the company said it was only going to pursue its assets in Belize after relinquishing its licenses in Denmark and securing a one-year extension to the Blue Creek project until the end of October 2016.
When that extension was secured, New World Oil said it would be conducting work around two drilling prospects, adding it would "work with potential investors and contractors to review alternative drilling technologies that can reduce the net cost to the group of any future drilling."
"Overall, the board is pleased with the progress that has been made over the short period since the end of last year and will provide further updates to the market in due course," said New World Oil Monday.
New World Oil shares were down 0.3% to 0.0598 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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