New World Oil and Gas doubles stake in Danica Jutland Project

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.

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.

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.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021