New World Oil & Gas announced Tuesday that it has raised approximately $14 million to fund drilling in Belize and a 3D seismic program in Denmark. The junior oil firm raised the money on London's Alternative Investment Market, where its stock is traded.
New World, whose only assets are in Belize and Denmark, is focused on onshore projects in the two countries. The company said that the proceeds from a placing of 95.6 million new shares in the business would be used to fund the drilling of a third well at its Blue Creek Project in the Petén Basin in northwest Belize and the planned 3D seismic program at its Danica Jutland project in Denmark.
The Belize well is set to target Prospect A, which has been estimated to contain P50 resources of 124 million barrels of oil.
"I am delighted with the interest and support New World has received from both new and existing shareholders, resulting in the Placing being oversubscribed. We are clearly not alone in believing New World is well placed to become a leading oil and gas company with a portfolio of projects at various stages of development," said New World Chief Executive William Kelleher in a statement.
"We are now fully funded to complete our ongoing, three-well drilling program in Belize and, in the process, acquire a 100-percent working interest in Blue Creek... At the same time, we will continue our program of seismic acquisition in Denmark with a view to commencing drilling in 2013."
Commenting on the fund raising, oil analysts at London-based Shore Capital said in a research note that they believed New World has progressively de-risked its projects and "delivered key milestones" in line with the firm's planned timetable.
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