New World Oil And Gas Regulatory News (NEW)

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

29 June 2011

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

Placing to raise £3 million

New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector, has, subject to the passing of certain resolutions at the Company's AGM to be held later today and admission of the new shares to trading on AIM, raised £3 million before expenses via a placing of 50,000,000 new ordinary shares of no par value (the 'Placing' or 'Placing Shares', as appropriate) at a price of 6 pence per Placing Share. The Placing has been arranged by Shore Capital Stockbrokers Limited ('Shore Capital'). It is intended that the funds raised will be used to invest in and advance additional oil and gas projects, to build a portfolio of assets which will include New World's first project, the Blue Creek Project in the Petén Basin in NW Belize.

New World's CEO William Kelleher said, "We believe that we have made important progress since listing, having already completed the Blue Creek Project transaction in the productive Petén Basin in NW Belize. With a clear strategy in place and a pipeline of potentially exciting investments, we are delighted to have gained the support from new and existing investors for this £3 million placing, which will allow us to implement our strategy and expand our portfolio."

"With further funds secured, 2011 is set to be an exciting year as we continue to review additional investment opportunities within the early stage, relatively low risk oil and gas exploration arena that offer our shareholders value uplift potential through the development process."

Background to the Fundraising

The Company's current strategy is to invest in oil and gas exploration and production companies and utilise the Directors' extensive network and expertise to identify opportunities which are undervalued, undeveloped or under-performing and facilitate growth/unlock value.

Following the Company's admission to AIM on 11 May 2011 and £3 million associated fund raising, on 16 June 2011 New World completed a farm-out for the Blue Creek Project, where New World was named operator. With the terms finalised, the Company will shortly begin a two-phase 2-D seismic acquisition and interpretation programme to further reduce geologic risk in the licence area. This is designed to allow the Company to focus on high grading subsurface prospectivity, before deciding on continuing to the next seismic acquisition phase and completing the Company's further farm-out obligations. New World expects to complete the earn-in work programme obligations agreed in the farm-out, including drilling operations, by Q1 2014.

With this transaction concluded, the Company has raised additional finance to invest in further projects as the existing cash reserves are being utilised for the development of the Blue Creek Project and for working capital.

The Placing

The Company, through its broker Shore Capital, has received commitments to subscribe for 50,000,000 new ordinary shares at 6p per Placing Share, raising approximately £3 million (before expenses). The Placing isinter alia conditional on admission of the Placing Shares to trading on AIM ('Admission').

Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that Admission will occur, and dealings in the Placing Shares will commence, on Wednesday 6 July 2011.

Following completion of the Placing, the Placing Shares will represent approximately 40% of the enlarged issued share capital of the Company, which will then comprise 128,019,496 ordinary shares of no par value. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of New World.

As part of the fees under the placing arrangements, the Company has issued 3 million warrants each with the right to subscribe for new ordinary shares at a price of 6p per share at any time within the next five years.

Directors' Dealings

Peter Sztyk, Director, has subscribed under the Placing for 833,333 Placing Shares at the placing price of 6p per Placing Share. Following the Placing he will be interested in a total of 7,273,333 ordinary shares, representing 5.68% of the enlarged issued share capital.

Note: 6,440,000 shares of this holding are held by The Black Sea and Caspian Trust, in which both Georges Sztyk and Peter Sztyk have a beneficial interest as potential (but unnamed) beneficiaries.

**ENDS**

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