AIM-listed New World Oil and Gas has announced that it has received approval to increase its interest in licences on the Danica Jutland Project to 25 per cent.
The Danish Energy Authority, which is part of the Government of Denmark, has formally approved the assignment to New World's wholly owned subsidiary, New World Jutland ApS an additional 12.5% working interest in Licences 1/09 and 2/09 of Danica Jutland.
Licences 1/09 and 2/09 are located in the highly prospective Jutland on-shore area in South West Denmark, covering a total area 4,107 square km.
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The additional 12.5% working interest represents the second tranche under the farm-out agreement announced in October 2011 and follows the acquisition of 55 line km of 2D seismic data to further delineate two Triassic prospects identified on Licence 2/09.
The company announced that, in addition, 75 square km of 3D seismic was acquired over the Jensen Prospect on Licence 1/09, which has a prospective resource estimate of 48m barrels of oil adjusted to an 80% working interest.
William Kelleher, Chief Executive Officer of New World, commented: "At our Danica Jutland project, we have combined P50 indicative volumetrics and success case economic outcomes totalling 134 MMBOE [million barrels of oil equivalent] and a NPV [net present value] of $1.22bn net to New World."
He added: "These numbers include only the three of 10 identified prospects or leads that have been formally reported on. As with our other Danish project, Danica Resources, there is considerable potential to significantly increase the combined volumetrics further.
Danish opportunitiesKelleher added that the company had identified 39 prospects or leads and said that a number of them had the potential to be company makers in their own right.
"With this in mind, we are looking forward to advancing operations in Denmark later this year, as we aim to deliver on our goal of building a leading oil and gas exploration and production company," he said.
New World Oil and Gas's share price was flat at 4.12p at 11:01 on Friday.
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