New World Oil and Gas, an oil and gas operating company focussed on Belize and Denmark, has formally received a 75 per cent working interest in its Blue Creek Project located in the producing Petn Basin in northwest Belize.
This follows the Belize Ministry of Natural Resources and the Environment formally approving the assignment of a further 40% working interest in the project to New World's wholly owned subsidiary, New World Oil and Gas (Belize).
The assignment follows the drilling of two exploration wells on the Blue Creek PSA 'B-Crest' location, as detailed in a farm-out agreement announced in June 2011.
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Having drilled two wells to date in Belize, the 'Blue Creek #2' and '#2A ST', under the terms of the farm-out agreement, the company reported that it was on track to earn-into a 100% working interest in the project by drilling the West Gallon Jug Crest prospect to a total depth of 8,800 ft.
Drilling is expected to commence on the third well in March 2013.
William Kelleher, New World Chief Executive Officer, said: "Earning into a 75% working interest into the Blue Creek Project in Belize marks a significant milestone for the company.
"Although we did not make a commercial discovery at our B Crest prospect, three of four elements which make up a working hydrocarbon system, source, migration and seal have been confirmed.
"Trap remains the only outstanding risk and importantly each of our remaining five drillable prospects in Belize are geologically independent of each other. With this in mind, we are looking forward to recommencing our drilling campaign in Belize in the next few weeks at our West Gallon Jug Crest prospect which has been assigned by RPS Energy a P50 un-risked resource of 113m barrels of oil for the Y1[Year One] and Y2[Year Two] intervals only."
He concluded: "The total combined upside in both Denmark and Belize for all eight drillable prospects that we have identified is P50 396m barrels of oil and 2trn cubic feet of gas, representing an un-risked indicative upside value potential of more than $6.4bn."
New World Oil and Gas' share price was unchanged at 4.25p at 08:41 on Tuesday following a morning high of 4.62p per share.
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