New World Oil and Gas Plc announced that the Rio Bravo #1 Well on the West Gallon Jug Crest prospect (WGJc) in Belize is currently drilling at approximately 7,700 feet. While a number of hydrocarbon shows have been recorded, the commerciality of these shows can only be determined once the well is drilled to total depth (TD), open hole logs are run and interpreted, and well testing results are available. The planned TD of the Well is estimated at 8,800 feet. On-going operations are continuing to proceed without incident, are on schedule and under budget.
Rio Bravo, which commenced drilling March 1 is targeting a non-fault dependent four way structural closure in the Upper Jurassic Margaret Creek Formation. The Well is currently drilling through the Cretaceous interval, through the anhydrite top seal and dolomite sequences. To date drilling operations at WGJc have been in line with the Company's geologic expectations.
As reported in the Company's Re-Admission Document dated July 3, 2012, the West Gallon Jug Crest prospect shows P50 un-risked prospective resources of 113 million barrels of oil (MMbo), with a P50 Net Present Value ('NPV10') of $2.6 billion on a 100 percent working interest basis. Following the completion of the Rio Bravo Well #1, New World's working interest in the Blue Creek Project, where the Company has identified multiple leads and prospects, will increase to 100 percent, subject to approval by the Government of Belize.
Maranco Energy Belize Ltd.
On April 2, in an announcement titled "Oil Discovery in Orange Walk District" the Ministry of Energy, Science and Technology and Public Utilities in Belize disclosed that Maranco Energy Belize Ltd. had discovered an encouraging oil show at the South Canal Bank#1 exploration well in the Gallon Jug area. Further and necessary testing is ongoing to determine the commercial potential of the oil show.
New World CEO William Kelleher said, "We are very interested in the news of Maranco's oil discovery given that the well is in the Gallon Jug area, and we are eager to hear the results of the well testing. In the meantime drilling at our WGJc prospect is progressing well with approximately 1,000 feet remaining until we reach TD.
"Good progress is also being made in Denmark where the 3-D seismic data is currently being interpreted and discussions with farm-in partners are on-going. An update is expected to be made to the market on finalization of the seismic data in the coming weeks."
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