New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, announced that the Rio Bravo Well located in the productive Petén Basin in Northwest Belize was drilled to a measured depth of 9,010 feet April 21. Following analysis, and in consultation with New World's partners, Blue Creek Exploration Ltd., and the Government of Belize, it was determined that insufficient commercial quantities of moveable hydrocarbons were present to economically justify running casing and well testing operations. As a result, the Company has deemed the well non-commercial and decided to plug and abandon Rio Bravo.
The logs and core samples were independently analyzed, as well as mud logs and all other available data. It has been determined an active hydrocarbon system exists and, as in the Company's previous well, live oil shows were measured in the Y3 and Hill Bank formations. Extensive residual oil was also present along with high saturations of formation water. It is the Company's prognosis that the primary issue in the sub-surface was that the timing of oil migration occurred prior to trap formation. However, the Company remains of the opinion that the technical data, produced by the Rio Bravo well, demonstrates that the New World acreage has received a petroleum charge and likely contains productive reservoirs, and will play an important role during the drilling of the future wells in Belize. Accordingly, the Company is in initial talks with potential farminees, in order to fund further exploration on the Blue Creek license.
Additionally, the Company has submitted an application to the Government for the assignment of the final 25 percent working interest in the Blue Creek license, which will elevate the Company's working interest to 100 percent. Approval from the Government is expected in the coming weeks.
New World CEO William Kelleher said, "Analysis of the data gathered from the Rio Bravo well points to an active working hydrocarbon system throughout this area. Combined with the presence of a reservoir ideal for oil production, and a large, extensive anhydrite seal, we remain confident that the elements required for a working hydrocarbon system are in place in North West Belize. As highlighted by our results to date, trap and timing of migration remain the key outstanding elements required for success in this area and, with multiple prospects already identified, we believe it is only a matter of time before we locate a trap of significant size. Accordingly we are currently in discussion with potential farminees in order to continue our drilling program in Belize.
"Our operations team have done a tremendous job on the drilling program, resulting in our well costs coming in on time and under budget. Many obstacles were overcome and much valuable information was acquired that will now be applied to any further wells. Our remaining five drill ready prospects in Blue Creek, and the multiple prospects identified in our three license blocks in Denmark will mark the next milestones for the Company and I look forward to providing updates on these exciting prospects in due course. Although obviously disappointed, I remain committed to building a significant oil and gas exploration and production company and in the process creating value for all shareholders."
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