12 Sep 2012 07:00
New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas
12 September 2012
New World Oil and Gas Plc ('New World' or the 'Company')
Operations Update
New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, notes recent media coverage in Belize and is pleased to confirm the arrival of the ThermaSource drilling rig #104 in the country on 31 August 2012. Drilling will commence shortly on the B Crest prospect, one of three drill ready prospects identified on the Company's flagship Blue Creek Project ('Blue Creek' or 'the Project'), located in the productive Petén Basin in Northwest Belize.
The drilling rig has been provided by the Company's drilling contractor, ThermaSource International LLC, following a farm-down of 5% working interest per well for the first two wells in exchange for a 25% reduction in drilling costs. The rig arrived in Belize in 65 containers, all of which have been transported to the drill site in the Blue Creek area, where it is currently being rigged up. Once fully assembled, the rig will be tested for operational capability and drilling is expected to commence on or around 1 October 2012.
B Crest is estimated to hold a P50 un-risked prospective resource of 92.1MMbo (Y1 and Y2 intervals) and a P50 un-risked NPV10 of US$2.4 billion. The drilling of B Crest is the first of the drilling programme at Blue Creek. The table below outlines the volumetrics and the expected timetable for the programme:
Drill Ready Prospect | P50 un-risked prospective resources | P50 NPV10
| Expected Timetable |
B Crest | 92 MMbo | US$2.4 billion | H2 2012 |
West Gallon Jug Crest | 113 MMbo | US$2.6 billion | H2 2012 |
A | 124 MMbo | US$3.2 billion | H1 2013 |
Total | 329MMbo | US$8.2 billion |
Note: figures are stated on a gross 100% WI ('working interest') basis
New World CEO William Kelleher said, "New World is entering a tremendously exciting period that will see, in just a matter of weeks, the commencement of drilling operations at Blue Creek in Belize, our most advanced project. Having reduced the geologic risk of our Belizean prospects by 60% through a multi stage seismic programme we will be in a position to judge whether we have made an oil discovery by mid to late November 2012. This is a hugely significant milestone for the Company and we are delighted to have reached it ahead of schedule and at a 53% reduced cost following our amendment to our Farm-Out Agreement and our Farm-Down to our drilling contractor.
"As well as providing shareholders exposure to near-term drilling in Belize we are also continuing to de-risk our identified prospects at our two Danish licences, with drilling targeted in 2013. With an update to the Competent Person's Report for our Danica Jutland Project and our Blue Creek Project as well as the commencing of drilling in Belize in Q4 2012, the remainder of the year will see a continuation of a highly active news cycle, and I look forward to updating the market on our progress at this exciting time for the Company."
* *ENDS* *
For further information please visit www.nwoilgas.com or contact:
Enquiries:
| ||
William Kelleher | New World Oil and Gas Plc | Tel: +1 713 447 2171 |
Georges Sztyk | New World Oil and Gas Plc | Tel: +1 514 961 2247 |
Peter Sztyk Felicity Geidt | New World Oil and Gas Plc Beaumont Cornish Limited | Tel: +1 917 215 7122 Tel: +44 (0) 20 7628 3396 |
Roland Cornish | Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
Jerry Keen | Shore Capital | Tel: +44 (0) 20 7408 4090 |
Pascal Keane | Shore Capital | Tel: +44 (0) 20 7408 4090 |
Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Lottie Brocklehurst | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Frank Buhagiar | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
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. Blue Creek in Belize is the Company's most advanced project where, later this year, drilling is due to commence at B Crest, a prospect with un-risked P50 prospective resources of 92MMbo and a POSg of 1 in 5 as confirmed by a Competent Person. 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. As a result, the Board is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia as it looks to build a leading, diversified oil and gas company.