New World Oil and Gas falls hard

New World Oil and Gas fell hard after announcing the issue of almost two million new shares as well as delays to drilling in Belize.

The bulk of the new shares - 1.08m - were issued at an average of 9.67p per share to settle professional fees and other financial obligations.

It also created almost 750,000 new shares at an average of 10.34p per share as part payment of historical costs related to the 2012 Danica Resources Farm-in agreement.

On top of this, a total of 141,387 shares were issued to the company's directors, Frederick Hodder and Chris Einchcomb, at an average of 9.55p per share.

In Belize, the firm said its Blue Creek 2A side track well was targeting a potentially significant trap.

Drilling operations have been halted whenever sections of interest in the targeted Hillbank and Y3 formations were found so that core samples can be taken, New World said.

As a result, the rate of drilling has been slower than that anticipated in the announcement of January 10th.

A further update would be made once the total depth was reached, at which point a decision would be made regarding testing the well, the company said.

The news overwhelmed positive a update Denmark, pushing shares down 11.5% by 09:00.

The firm reported an "extremely positive competent persons report update" at its Danica Resources Project.