New World Oil And Gas Regulatory News (NEW)

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

4 August 2011

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

Operations Update - Blue Creek Project, Belize

New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector, is pleased to provide a positive operations update for its exploration and development programme for the Blue Creek Project in the Petén Basin in Northwest Belize ('the Project'), where the Company has made significant progress since acquiring it in June 2011 and seismic data is already being processed.

Overview:

·; Phase 1 of the 2-D seismic data programme completed ahead of management expectations and within budget with acquisition of 45.80 km spread over three lines

·; Data tapes sent for processing with results expected by the end of August 2011 - preliminary results show good data quality

·; Phase 2 of the 2-D seismic programme commenced - an initial two lines completed - expected to resume end August 2011, subject to improved weather conditions

·; Updated Competent Persons Report expected by the end of September 2011 incorporating the results of the first five lines (68 km) of seismic data

·; Formal assignment of 12.5% of the Product Sharing Agreement to New World currently being drafted for approval from the Government of Belize

New World CEO William Kelleher said, "I am very excited to report our progress on the Blue Creek project in Belize, which is funded through to the completion of phase 1 and 2 seismic programmes. Our goal has always been early oil, and this seismic programme is a major step in that direction. Our team has been working hard to ensure that we do not waste any time executing our programme. I am particularly pleased to note that our subsurface team and seismic contractor have accepted shares in the Company as partial payment for their services, which we believe is a real vote of confidence in the application of the technology we are using and says a lot about the overall prospectivity of our project.

"Prior to the signing of definitive transaction agreements, just 34 days from listing, which included the completion of our initial Competent Persons Report ('CPR'), all the work necessary to undertake our seismic operations in the field had been completed allowing us to be in the field within days of completion without any delay. This allowed us to complete phase 1 ahead of our expectations and under budget. We will continue to refine our prospects and choose at least two 'drill ready' seismic-based prospects by the end of Q1 2012."

Detailed Information

The Company's subsidiary, New World Oil and Gas (Belize) Ltd ('NW Belize'), has a Farm-Out Agreement ('FOA') with Blue Creek Exploration Ltd ('BCE') to acquire up to a 100% participating interest in the Production Sharing Agreement ('PSA') over the Blue Creek Project.

In June 2011, the Company appointed American Seismic LLC ('American Seismic') for the acquisition of 170 line km of 2-D seismic. Field conditions during the first few weeks of the survey were very wet as the Blue Creek survey area received more than 30 inches of rain (normal rainfall for this period of July is 5 inches). Nonetheless, surveying of five lines totalling 68.20 km (including 45.80 km of phase 1 and 22.40 km of phase 2) was completed ahead of management expectations and, importantly, with no work stoppage, injuries, or cost overruns. The seismic data was collected over different terrains including unpaved farm roads, flat to rolling hills with pastures to an area of uplifted and deeply incised limestone bedrock with dense jungle cover.

Phase 1 2-D seismic data acquisition programme 21 June - 21 July 2011

Phase 2 2-D seismic lines acquired 22-25 July 2011

The data tapes for the five seismic lines were sent to Excel Geophysical Services Inc. in Denver, Colorado for processing and preliminary results show good data quality. The Company expects to receive final processed data by the end of August 2011. Interpretation of the new data will get underway as soon as any final processed data are received. Adjustments for the remaining 88 km of the existing survey may be made pending the results of the interpretation of the first five lines.

Seismic crews will be on a scheduled break until surveying resumes in the southern part of the license area in mid August 2011 when line BCE-11-2 will be acquired, weather permitting. In the interim period, road improvement work will be carried out to allow safer access into this area, a camp will be prepared to accommodate seismic crews, and access along logging roads will be cleared of trees blown down by a storm in 2010. Seismic crews will return to the northern part of the license area to continue surveying once BCE-11-2 has been recorded. Acquisition of this 14 km long line is anticipated to take two to three weeks, weather permitting.

NW Belize has also been active on many other administrative fronts: an interim General Manager has been named for the Project; two Belize entities have been incorporated, satisfying the ownership requirement for Belize concessions; bank accounts have been opened in Belize City to handle all local expenditures; and NW Belize is actively seeking office and residence accommodations in Belize City.

The phase 1 and phase 2 of the 2-D seismic data programme are fully funded. The directors are focussed on the rapid development of the Project, whilst incurring minimal costs. The Company's technical advisors have agreed to receive part of their fees in New World shares which suggests their confidence in the Project.

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