£8.5m Placing & Update on Farm-In Negotiations

New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas

09 March 2012

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New World Oil and Gas Plc ('New World' or the 'Company')

Announces £8.5 million Placing and Update on Farm-in Negotiations

New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector, has placed £8.5 million (US$13.4 million) which is being raised by the issue of 106,250,000 new ordinary shares (the 'Placing Shares') in the Company at a price of 8 pence per share (the 'Placing'). In addition, the Company confirms that discussions are ongoing with potential farm-in partners looking to participate in New World's highly prospective assets that include the 420 sq km Blue Creek Project ('Blue Creek') in the Petén Basin, Belize and the Danica Jutland and Danica Resources Projects, totalling 10,507 sq km in the South Permian Basin in Denmark.

On 30 January 2012, the Company announced it was undertaking a fundraising in response to receiving considerable interest from institutional investors and lenders in the Company's portfolio of assets. A figure of approximately US$35 million was included in the 30 January release in order to facilitate discussions with investors.

During the fundraising, the Company received expressions of interest from other US institutional and potential strategic investors. However, in line with New World's previously stated funding timetable and strategy, to put in place a balanced funding package that is mindful of dilution including debt, farm-in, and equity, the amount of new equity being raised has been limited to US$13.4 million at this time, principally from UK and US institutional and other investors. The proceeds of the Placing will be used to continue the development of the Company's portfolio of investments in line with the Company's investing policy and to provide additional working capital.

New World CEO William Kelleher said, "Investors have clearly recognised the value and potential of the assets New World has assembled since listing on AIM, particularly our most advanced project, Blue Creek in Belize with its current estimated gross P50 reserves of 294MMbbl and a gross combined P50 NPV10 of US$7.1 billion.

"Following the Placing, we will be in a much stronger position to continue our negotiations with potential farm-in partners and other investors, meet our current commitments in Belize and Denmark, and take advantage of any suitable opportunities that meet our investment criteria. On behalf of the Board, I would like to thank shareholders for their support and patience during these last few weeks and we anticipate updating the market in due course on our farm-in discussions. In the meantime, progress continues to be made at all our projects in line with previously stated timelines."

This announcement has been prepared for publication in the United Kingdom and may not be released or distributed in the United States. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. There will be no public offering of the securities in the United States.

Admission and dealings

The Placing Shares will rank pari passu in all respects with the Company's existing issued ordinary shares and will be equivalent to 43.54% of the enlarged issued share capital. Application has been made for the admission of the Placing Shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 16 March 2012.

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the Company announces that following the issue of the Placing Shares, the Company will have 244,063,869 Ordinary Shares in issue ('Enlarged Share Capital').

The Company has no ordinary shares held in treasury. The total number of voting rights in the Company will therefore be 244,063,869. This figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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For further information please visit www.nwoilgas.com or contact:

Notes

New World Oil and Gas Plc is focussed on making investments in the oil and gas sector, either by acquisition or by participation through farm-out agreements. The Company targets late stage exploration or early production projects that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing, and are located in basins with large proven reserves. It is currently has two highly prospective projects in Central America and Europe and is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia.