New World Oil & Gas eyes bigger oil find

New World Oil & Gas rose after tests showed the increased prospect of a large discovery at its B Crest project in Belize.

The firm said live oil shows in the Y3 and Hill Bank reservoirs at the site had been confirmed.

A decision has now been made to drill a deviated well from the existing vertical well location to get up structure in the Y3 and Hill Bank formations to evaluate the trap potential and to target additional potential oil accumulations.

This decision was taken with the approval of the government of Belize, the company added.

Chief Executive William Kelleher said both the logs and significant amounts of live oil observed at the surface while drilling showed the firm was working on an active hydrocarbon system.

He added that with the new drilling plans he expected an improved trap potential, to obtain better log results, and to see an increase in the gross reservoir thickness.

The company's shares were up 2.8% at 09:15 following the announcement.