New World Oil and Gas, a company focused on Belize and Denmark, has announced that the Danish Energy Authority has formally approved the assignment of a 25 per cent working interest in licence 1/08 of the Danica Resources Project to the company's wholly owned subsidiary, New World Resources ApS.
The assignment of the working interest, which is located in the productive Western Baltic region of the South Permian Basin in southern Denmark, follows a farm-out agreement formed in April 2012 and the completion of the first phase of a 2-D seismic acquisition programme consisting of 166.44 sq km, and an additional 38.5 sq km 2-D seismic acquisition programme on two re-confirmed leads.
The company also said that following the incorporation of the results from phase 1, the competent person's report confirmed the prospectivity of the drill-ready Als prospect with an estimated P50 (proven plus probable) un-risked prospective recoverable resources of 1.4trn cubic feet and 97m barrels of oil and net present value (10%) of $2.4bn (unrisked).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Additionally, four previously identified Zechstein leads were confirmed on Falster and Lolland Islands from the new seismic data on which a 38.5 km 2-D acquisition programme has recently been completed. Results from this 2-D programme targeting these large leads which total 13,485 acres will be released in the second quarter of 2013.
Chief Executive Officer William Kelleher said: "We are delighted to have now earned into a 25% working interest in both of our Danish projects. In tandem with increasing our interests in these three exciting licences, we are delivering on our strategy to systematically identify, delineate and de-risk multiple prospects to the point of drilling.
"At our Danica Resources project, we already have the drill-ready Als prospect, which has estimated P50 prospective resources of 97m barrels of oil and 1.401trn cubic feet of gas on a 100% working interest basis, and this is just one of 29 leads/prospects we have identified. We are keen to receive the results of our recently completed 2-D seismic programme on our two large prospects on the Lolland and Falster Islands totalling 13,485 acres.
"With results expected in the second quarter of 2013 there remains tremendous scope to materially add to the P50 prospective resources on the licence, particularly bearing in mind the size of Als' volumetrics."
The share price rose 3.12% to 4.12p by 08:28.
NR
Filtronic: a UK success story cashing in on the space race
How to use SAYE and SIP schemes to multiply your money
