New World Oil and Gas completes drilling on second well

New World Oil and Gas has completed drilling at its second Blue Creek well in Northwest Belize with oil and gas showing in the mud logs at various intervals.

New World Oil and Gas has completed drilling at its second Blue Creek well in Northwest Belize with oil and gas showing in the mud logs at various intervals.

The well, on the B Crest prospect on its flagship Blue Creek project, is the second of a three-well program. It reached a total depth of 10,490 feet and the company revealed: "Oil and gas shows have been present in mud logs recorded throughout the upper and middle Cretaceous intervals, including the Y1, Y2 and Y3 intervals of the Yalbac formation and the Hillbank formation."

The next stage, currently underway, is to run electric wireline logs in the well which will, amongst other things, measure certain rock formation characteristics and enable the company to calculate fluid saturation levels, porosity, and determine rock thicknesses.

Subject to the results of this exercise, New World will then determine at what depth intervals to carry out further evaluation which will assess the way forward.

New World Chief Executive Officer William Kelleher said: "We have confirmed that the B Crest prospect is located in a working hydrocarbon system. Encountering oil shows at all targeted intervals is encouraging but there is still more work to be done. Reviewing the results of the open hole wireline logs is the next course of action. I look forward to providing further updates to shareholders as and when we have further information."

Once electric wireline logging has been completed the company will then go through the 'Well Testing' stage as this is the only way to determine if a well will flow with commercial rates.

B Crest, has prospective resources of 92 million barrels of oil, but until these tests are completed there remains a large risk that the find won't be commercially viable.

CM

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Why now is a good time to buy diamond miners
Commodities

Why now is a good time to buy diamond miners

Demand for the gems is set to outstrip supply, making it a good time to buy miners, says David J. Stevenson.
12 Aug 2022