New World Oil and Gas Plc announced it has formally received a 75 percent working interest in its Blue Creek Project located in the producing Petén Basin in Northwest Belize. This follows the Belize Ministry of Natural Resources and the Environment formally approving the assignment of a further 40 percent working interest in the Project to New World's wholly owned subsidiary, New World Oil and Gas (Belize) Ltd ('NW Belize'). The assignment follows the drilling of two exploration wells on the Blue Creek PSA 'B-Crest' location, as detailed in the Farm-Out Agreement ('FOA') announced on 16 June 2011.
Having drilled two wells to date in Belize, the Blue Creek #2 and #2A ST, under the terms of the FOA, the Company is on track to earn-into a 100 percent working interest in the Project by drilling the West Gallon Jug Crest prospect to a total depth of 8,800 feet. Drilling will commence on this third well in March 2013.
New World CEO William Kelleher said, "Earning into a 75 percent working interest into the Blue Creek Project in Belize marks a significant milestone for the Company. Although we did not make a commercial discovery at our B Crest prospect, three of four elements which make up a working hydrocarbon system, source, migration and seal have been confirmed. Trap remains the only outstanding risk and importantly each of our remaining five drillable prospects in Belize are geologically independent of each other. With this in mind, we are looking forward to recommencing our drilling campaign in Belize in the next few weeks at our West Gallon Jug Crest prospect which has been assigned by RPS Energy a P50 un-risked resource of 113 million barrels of oil for the Y1 and Y2 intervals only.
"Our Belize prospects are only part of the potential upside we are exposing our shareholders to. In Denmark we have three drillable prospects within our Danica Jutland and Danica Resources projects where we will be looking to drill later this year. We are hopeful that we will be able to reduce capital expenditure requirements in Denmark by farming-down to interested potential farm-in partners that have shown considerable interest in our Danish assets.
"2013 is shaping up to be an active year for New World. The total combined upside in both Denmark and Belize for all 8 drillable prospects that we have identified is P50 396 million barrels of oil and 2 trillion cubic feet of gas, representing an un-risked indicative upside value potential of more than $6.4 billion. Our team has taken significant steps to de-risk these prospects which are now all drill ready. We also have built an inventory of 40 further prospects and leads in both Belize and Denmark that we continue to mature. I look forward to updating the market on our progress."
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