First Meadows Signs LOI in Belize
New World O&G announced that its intermediary First Meadows has signed a non-binding letter of intent granting First Meadows (on behalf of the Company) a 45 day exclusivity period in which to undertake due diligence on two oil concessions totaling 560 sq km, located in the productive Petén Basin in Northwest Belize ('the LOI'). The LOI is non-binding save for granting First Meadows a 45 day exclusivity period in which to undertake due diligence on behalf of the Company, following which First Meadows has the right to transfer its rights under the LOI to the Company. Any potential investment by the Company would be in accordance with the Company's investing policy as set out in its Admission Document.
- The LOI provides a 45 day exclusivity period to conduct due diligence on two concessions - Blue Creek and Gallon Jug, both named under one 560 sq km Production Sharing Agreement ('PSA'), located onshore Belize in the Petén Basin.
- The Company has engaged RPS Energy to undertake a competent person's report in the form of a letter of opinion ('CPR') to assist New World in determining the prospectivity of the PSA.
- Upon completion of the CPR and subject to the satisfactory completion of due diligence, it is intended that definitive transaction documents will be agreed in the form of a Farm-out and Operating Agreement with the Company being named as Operator, followed by the Company being named on the PSA for both concessions.
- The LOI contemplates (subject to due diligence including the CPR being satisfactory) a staged investment in 2D seismic, initially of US $500,000 but up to a total of US $2 million at the Company's discretion, followed by the right to acquire further interests on the basis of an agreed drilling program if the Company then decides to take the opportunity further.
New World CEO William Kelleher said, "We are delighted that this opportunity has materialized for us so quickly. As per the Company's stated investment policy, we are initially focused on opportunities in Central America, with particular emphasis on the highly prospective Petén Basin, Belize, where the Board believes that significant opportunities exist. This Project falls within our investment criteria and is particularly exciting as it is located in very close proximity to recent commercial discoveries."