New World Oil and Gas announced Friday that the Danish Energy Authority has approved the assignment to its Danish subsidiary an additional 12.5-percent working interest in licenses 1/09 and 2/09. Consequently, the company's working interest in the Danica Jutland project has increased to 25 percent.
The Danica Jutland licenses are located in what New World describes as the "highly prospective" Jutland onshore area of southwest Denmark, covering a total area of approximately 1,575 square miles. The additional 12.5-percent working interest is a second tranche promised to New World under a farm-out agreement announced Oct. 11 2011, following the acquisition of 2D seismic data.
New World CEO William Kelleher commented in a company statement:
"At our Danica Jutland project, we have combined P50 indicative volumetrics and success case economic outcomes totalling 134 million barrels of oil equivalent and a NPV10 [net present value] of $1.22 billion net to New World. These numbers include only the three of 10 identified prospects or leads that have been formally reported on. As with our other Danish project, Danica Resources, there is considerable potential to significantly increase the combined volumetrics further.
"In Denmark as a whole, we have identified 39 prospects/ leads, a number of which have the potential to be company makers in their own right. With this in mind, we are looking forward to advancing operations in Denmark later this year, as we aim to deliver on our goal of building a leading oil and gas exploration and production company."
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