Assignment of Initial 12.5% of Blue Creek Project

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

17 October 2011

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

Ministry Approval for Assignment of Initial 12.5% Working Interest in the Blue Creek Project, Belize

New World Oil and Gas Plc, a company focused on making investments in the oil and gas sector, is pleased to announce that the Belize Ministry of Natural Resources and the Environment has formally approved the assignment of an initial 12.5% working interest in the 420 sq km Blue Creek Project located in the Petén Basin in Northwest Belize ('the Project') to New World's wholly owned subsidiary, New World Oil and Gas (Belize) Ltd ('NW Belize'). This represents the assignment of the first tranche under the Farm-Out Agreement announced on 16 June 2011 and follows the acquisition of 45 line km of 2-D seismic data and the re-payment of certain historical costs by New World to Blue Creek Exploration Ltd ('BCE') as referred to in the announcement on 20 September 2011.

The Company is continuing to carry out its Phase 2 125 line km 2-D seismic survey on the Project area, upon the completion of which, NW Belize will be transferred a further 12.5% working interest in the Project, bringing the Company's total working interest in the Project at that stage to 25%.

New World CEO William Kelleher said, "The approval from the Government of Belize for the transfer of the first 12.5% working interest in the Blue Creek Project is another significant milestone for New World. As previously announced, following the results of the first of three planned phases of our seismic programme, our Competent Person, RPS, provided an update to the CPR, specifically highlighting four structures similar to those found in the nearby producing Spanish Lookout field in the productive and highly prospective Petén Basin. The primary objective of Phase 1 was to provide greater resolution to possible structures and correlate these with the productive interval at Spanish Lookout, and this objective was achieved. Upon completion of Phase 2, it is intended that RPS will generate a second update to the CPR and we expect this to include first estimates of in-place or recoverable volumes. We expect this update to be released before the end of 2011 and look forward to updating shareholders on our progress then."

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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. The Company targets late stage exploration or early production projects that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing, located in basins with large proven reserves. New World is currently operating in Central America and Europe where New World has acquired two highly prospective projects via Farm-Out Agreements, although the Board is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia.

New World's first investment was in the Blue Creek Project, located in the productive Petén Basin in northwest Belize, and consists of two concessions, Blue Creek and Blue Creek South, totalling 420sq km. The Company has signed a Farm-Out Agreement for up to a 100% working interest in the project upon full completion of the earn-in work programme. A multi-phased 2-D seismic acquisition and interpretation programme is being undertaken, with Phase 1 complete and Phase 2 currently underway, the completion of which will earn the Company a 25% interest in the project.