Shares in New World Oil and Gas dipped on Friday morning after the oil and gas exploration company reported that insufficient commercial quantities of moveable hydrocarbons had been found at the Rio Bravo well in Northwest Belize.
The company, which is focused on Belize and Denmark, said that the well, which is located in the Petn Basin, had been drilled to a measured depth of 9,010 ft on April 21st.
Following analysis, and in consultation with New World's partners, Blue Creek Exploration, and the government of Belize, the company said it had been determined that insufficient commercial quantities of moveable hydrocarbons were present to economically justify running casing and well testing operations.
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As a result, the company said it had deemed the well non-commercial and decided to plug and abandon Rio Bravo.
William Kelleher, Chief Executive Officer of New World Oil and Gassaid: "Analysis of the data gathered from the Rio Bravo well points to an active working hydrocarbon system throughout this area. Combined with the presence of a reservoir ideal for oil production, and a large, extensive anhydrite seal, we remain confident that the elements required for a working hydrocarbon system are in place in North West Belize."
He added: "Many obstacles were overcome and much valuable information was acquired that will now be applied to any further wells.
"Our remaining five drill ready prospects in Blue Creek, and the multiple prospects identified in our three licence blocks in Denmark will mark the next milestones for the company and I look forward to providing updates on these exciting prospects in due course.
"Although obviously disappointed, I remain committed to building a significant oil and gas exploration and production company and in the process creating value for all shareholders."
New World Oil and Gas' share price was down 31.58% to 0.98p at 10:05 on Friday.
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