New World Oil and Gas reported Tuesday that it has secured an eight-month extension in work program commitment deadlines for its license 1/08, which covers its Danica Resources Project in southern Denmark.
In order to secure the extension, New World said it has committed to a geochemical survey that is designed to "high grade" its existing prospect inventory in an effort to determine the best possible candidate for a 3D seismic survey prior to making a commitment to drill.
In addition to allowing New World more time to further evaluate the prospects defined by the 3-D survey, the extra eight months will also enable the company to continue ongoing discussions with potential farm-in partners.
New World added that it has completed its Danish license obligations with regards to seismic acquisition. A total of 125 miles of 2D seismic data has been acquired on license 1/08, which has resulted in New World holding a 25-percent working interest in the license. The firm has also identified four drill-ready prospects in Denmark.
New World CEO William Kelleher commented in a company statement:
"We are very pleased to receive this extension as it will help facilitate our continuing discussions with various farm-out partner candidates. With the probability of geologic success currently estimated at one-in-eight by our competent person, it is our intention to defray the risk and share the cost at our Danish licenses going forward.
"At the same time, a farm-out will also serve to highlight the value we have created to date through our extensive seismic acquisition program. We will update the market on the results of the recent seismic activity and our discussions with potential farm-in partners in the coming weeks."
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