Positive Update for New World's Danica Jutland Project

by Jon Mainwaring

Rigzone Staff

Tuesday, June 12, 2012

New World Oil & Gas reported Tuesday that its Danica Jutland Project in southwest Denmark could hold as much as 147 million barrels of oil equivalent (on a P50 basis) across three targets it has identified there, according to an update to the firm's competent person's report (CPR).

The update follows the completion of Phase 1 of a 2D seismic acquisition program on the 1/09 and 2/09 licenses.

New World said that the onshore Jelling and Harboe gas prospects at Danica Jutland, as well as an oil prospect at Jensen, could represent up to $1.3 billion – surpassing the firm's own expectations – while pointing out that these numbers only include three of 10 identified prospects.

"This is an extremely positive CPR update and another significant milestone for New World and underpins the tremendous confidence we have in our first Danish project," said New World CEO William Kelleher.

"We intend to acquire 55 line kilometers [34 miles] of additional 2D seismic this summer and will conduct further AVO work in an effort to reduce the GPoS in the Triassic to a one-in-five, or better, and elevate the status of these two prospects to 'drillable' with a view to drilling sooner rather [than] later."

Oil analysts at Shore Capital, which provides broker services to New World, said Tuesday that it was "highly encouraged by today's news".

In April this year, New World acquired from Danica Resources a 12.5-percent working interest (with potential to farm-in up to 80 percent) in what it describes as the "highly prospective" Licence 1/08 that includes both onshore and offshore acreage in southern Denmark. New World believes this has a "tremendous volumetric potential" of 1.4 trillion cubic feet of gas in a Rotliegendes target and 97 million barrels of oil in a Zechstein target.

"Combined, Danica Jutland and Danica Resouces make New World the largest licence holder in Denmark with 2.7 million acres," added Kelleher.

However, New World's flagship operation remains the Blue Creek project in Belize.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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