New World Oil and Gas Plc announced that the Belize Ministry of Energy, Science & Technology and Public Utilities has formally approved the assignment of a further 10 percent working interest in the Blue Creek Project located in the producing Petén Basin in Northwest Belize (the Project) to New World's wholly owned subsidiary, New World Oil and Gas (Belize) Ltd (NW Belize).
This assignment, which was approved following the acquisition of an additional 27 miles (43 line kilometers) of 2-D seismic data, as detailed in the Interim Statement of Sept. 28, 2012, brings the Company's total working interest in the Project to 35 percent.
Under the terms of the Farm-Out Agreement (FOA), originally announced on June 16, 2011 and amended in February 2012 and May 2012, the Company can earn up to a 100 percent working interest in the Project by achieving various milestones, including a three phase 2-D seismic acquisition program totaling 231 line kilometers and an exploration drilling program. With the seismic program completed, drilling has just commenced on the B Crest Prospect, which will be drilled to a total depth of 7,000 feet into the mid cretaceous Yalbac 2 Formation, with results expected by year-end.
New World CEO William Kelleher said, "Earning into a 35% working interest in the highly prospective Blue Creek project, Belize, marks the formal end of our successful seismic acquisition program and the beginning of a highly anticipated drilling campaign. On 27 September 2012 we spudded our first well on our B Crest Prospect, which, on completion, will see our interest in the Project increase to 56.6%. Combined with our recently announced placing, I look forward to updating shareholders on our progress during this exciting time for the Company."
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