New World Oil And Gas Regulatory News (NEW)

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

10 December 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, is pleased to provide an update on operations across its portfolio of highly prospective exploration projects.

Belize

B Crest Prospect, Blue Creek Project located in the productive Petén Basin

·; Presence of a working hydrocarbon system confirmed by results of the Blue Creek #2 well ('Blue Creek#2')

·; 45% and 65% oil saturation in the lower Cretaceous Dolomites of the Y3 and Hill Bank formations following petrophysical interpretation of open-hole logs

·; Currently drilling a deviated well, the Blue Creek #2A ST ('the Well'), targeting potential commercial oil accumulation up structure above the interpreted oil water contact

·; The Well will be drilled to an angle of 35 degrees relocating the bottom hole location of Blue Creek #2 by some 4,535 feet to the SSE and up-structure 300 feet

o As at 7 December 2012, the Well is at 4,500 feet Measured Depth ('MD')

·; The Directors believe the chances of discovering a commercial oil accumulation at B Crest have materially increased due to:

o targeting oil bearing formations seen in the vertical well, Blue Creek#2, and drilling 300 feet up-structure

o observing on seismic an enlarging wedging or thickening effect of Y3 and Hill Bank formations up-structure where the Company believes a significant trap exists

o relocating above the interpreted oil water contact to maximise chances of obtaining commercial flow rates during planned testing operations

·; The proposed total depth ('TD') of the Well is 10,880 feet MD and is expected to be reached on or about the end of 2012

Denmark

Licence 1/09 - Danica Jutland located in the highly prospective Jutland on-shore area in South Western Denmark

·; Acquiring 75km2 of 3D seismic over Jensen, a Zechstein oil prospect, which, as reported in the Admission CPR has a prospective resource estimate of 48MMbo (adjusted to an 80% working interest)

·; Seismic operations began mid-November 2012 and are scheduled to be completed by 14 January 2013

·; Recent cold weather has greatly assisted in acquiring quality data

·; Results of processing and interpretation expected mid-February

Licence 1/08 - Danica Resources located in the productive Western Baltic region of the South Permian Basin in Southern Denmark

·; 2D seismic completed September 2012 - currently in the final stages of interpretation

·; CPR update expected before the end of 2012

·; Based on the results a decision will be made by the Company and its partners, Danica Resources ApS and the North Sea Fund, on whether to acquire additional 2D and or 3D seismic, or to propose drilling the Als prospect which has estimated gross (100% working interest basis) P50 resources of 97 million barrels of oil and 1.401 TCF of gas

CEO William Kelleher said, "We are extremely encouraged by the results of our efforts across our portfolio to date. We believe our chances of making a commercial discovery in Belize have greatly improved, which we should be in a position to confirm in the weeks to come. Our de-risking programme at both licences in Denmark remains on track and we will shortly be able to decide on the best way forward at each project. These are very exciting and busy times for New World and I can assure all our shareholders that the management of the company is working tirelessly on all fronts, as we work towards our objectives of making a hydrocarbon discovery and building value. I look forward to updating the market on our progress as and when new developments arise."

Further information on drilling operations at Blue Creek

The Blue Creek #2 well commenced drilling operations on 27 September 2012, and reached the initial target depth (TD) of 7,000 feet in mid-October. Following a review of the mud logs, it was clear that the initial targets in the Y1 and Y2 intervals did not contain significant oil shows that would warrant further analysis. The results in these intervals indicated moderate petroleum odour and oil stained rock, which the Company believes is due to either late trap development or early trap breech.

Given the initial TD was reached far ahead of schedule and under budget, a decision was taken to continue drilling to the Y3 and base of the Hill Bank, thus fulfilling one of the requirements of the work programme in the farmout agreement with Blue Creek Exploration Ltd. The Company managed to drill to 10,490 feet for a total cost of approximately US$4 million, over US$1.6 million under budget.

As announced on 29 November 2012, promising oil shows were observed while drilling into the Y3 and Hill Bank formations based on live oil present on the shakers while drilling and circulating, as well as the presence of oil and gas recorded by the mud logs. In addition, the open-hole logs calculated a petrophysical interpretation which resulted in oil saturation in the lower Cretaceous Dolomites of the Y3 and Hill Bank of between 45% and 65%. The Company understood that drilling into the Y3 and Hill Bank from the location of the Blue Creek #2 well would be structurally low. The results, however, confirmed the presence of a working hydrocarbon system. Given the water content in these reservoirs is relatively high at this location, at an average of 50%, the Company chose not to run casing and not to put the well on test.

In consultation with its geological and geophysical team, drilling management, partners, and the Government of Belize, New World decided to drill a deviated well 'sidetracking' from a depth of 3,000 feet. The underlying reason behind the decision to drill 'up-dip' or 'up-structure' was to relocate the well above the interpreted oil water contact, while at the same time drilling closer to the NE to SW bounding fault. The Company believes that a significant trap exists up-structure, and that logically the live oil shows are a reflection of oil migration that has slowed down as a result of such a trap.

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.

* *ENDS* *

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. Blue Creek in Belize is the Company's most advanced project where drilling operations are currently underway at the B Crest prospect. 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.