New World Oil And Gas Regulatory News (NEW)

New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas

26 April 2013

New World Oil and Gas Plc ('New World' or the 'Company')

Drilling Update

New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, announces that the Rio Bravo Well ('Rio Bravo') located in the productive Petén Basin in Northwest Belize was drilled to a measured depth of 9,010 feet on 21 April, 2013. Following analysis, and in consultation with New World's partners, Blue Creek Exploration Ltd., and the Government of Belize ('the Government'), it was determined that insufficient commercial quantities of moveable hydrocarbons were present to economically justify running casing and well testing operations. As a result, the Company has deemed the well non-commercial and decided to plug and abandon Rio Bravo.

The logs and core samples were independently analysed, as well as mud logs and all other available data. It has been determined an active hydrocarbon system exists and, as in the Company's previous well, live oil shows were measured in the Y3 and Hill Bank formations. Extensive residual oil was also present along with high saturations of formation water. It is the Company's prognosis that the primary issue in the sub-surface was that the timing of oil migration occurred prior to trap formation. However, the Company remains of the opinion that the technical data, produced by the Rio Bravo well, demonstrates that the New World acreage has received a petroleum charge and likely contains productive reservoirs, and will play an important role during the drilling of the future wells in Belize. Accordingly, the Company is in initial talks with potential farminees, in order to fund further exploration on the Blue Creek licence.

Additionally, the Company has submitted an application to the Government for the assignment of the final 25% working interest in the Blue Creek licence, which will elevate the Company's working interest to 100%. Approval from the Government is expected in the coming weeks.

New World CEO William Kelleher said, "Analysis of the data gathered from the Rio Bravo well points to an active working hydrocarbon system throughout this area. Combined with the presence of a reservoir ideal for oil production, and a large, extensive anhydrite seal, we remain confident that the elements required for a working hydrocarbon system are in place in North West Belize. As highlighted by our results to date, trap and timing of migration remain the key outstanding elements required for success in this area and, with multiple prospects already identified, we believe it is only a matter of time before we locate a trap of significant size. Accordingly we are currently in discussion with potential farminees in order to continue our drilling programme in Belize.

"Our operations team have done a tremendous job on the drilling programme, resulting in our well costs coming in on time and under budget. Many obstacles were overcome and much valuable information was acquired that will now be applied to any further wells. Our remaining five drill ready prospects in Blue Creek, and the multiple prospects identified in our three licence blocks in Denmark will mark the next milestones for the Company and I look forward to providing updates on these exciting prospects in due course. Although obviously disappointed, I remain committed to building a significant oil and gas exploration and production company and in the process creating value for all shareholders."

The technical content of this announcement has been reviewed and approved by William Kelleher who has been a member of the Society of Petroleum Engineers for 28 years, as well as the Government of Belize.

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For further information please visit www.nwoilgas.com or contact:

Notes

New World Oil and Gas Plc is an oil and gas operating company with three highly prospective projects in Belize and Denmark. New World is operator of all three projects where a systematic programme of seismic acquisition has resulted in multiple prospects being identified and derisked, a number of which have been classified by the Competent Person as being drill ready. In Belize drilling operations commenced at the West Gallon Jug Crest prospect on 1 March 2013. New World also operates two projects in onshore Denmark located in producing basins covering a combined area of over 2.6 million acres, making it the largest holder of acreage in Denmark.

Management is constantly evaluating additional projects that would complement the Company's growing portfolio, particularly late stage exploration or early production projects located in basins with large proven reserves that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing.