New World signs new licence in Denmark

New World Oil and Gas has been granted a 90-day exclusivity period by Danica Resources in which to complete a competent person's report (CPR) on a 6,400 square kilometres oil and gas concession.

The licence, known as 1/08, is the firm's third in Denmark.

Chief Executive Officer William Kelleher said: "As was the case with the Danica Jutland Project, our first two licences in Denmark, we are fortunate to be dealing with many of the same individuals who are also closely involved in our project in Belize where our competent person recently identified two prospects with a combined P50 [probable reserves] estimate of 294MMbbl [million barrels] and an expected monetary value of $1.53bn."

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The licence has two targets: Zechstein and Rotliegendes. Zechstein has a probability of geological success of one in eight, while Rotliegendes has a probability of one in nine, according to Mark Roach, an independent petroleum engineer. They have a combined net present value of $2.44bn in the case of success.

The former is expected to generate 97 million barrels of oil, while the latter is expected to produce 1.401 trillion cubic feet of gas.

The company is planning a staged investment in 2-D seismic data investigation once the CPR is completed, which is expected by the end of month.

The share price rose 6.06% to 13.12p by 12:37.

NR