CPR Confirms Prospectivity of Danica Resources

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

25 January 2012

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

CPR Confirms Prospectivity of the Danica Resources Project, Denmark

New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector, has received a Competent Person's Report ('CPR') from RPS Energy ('RPS') highlighting the prospectivity of the Danica Resources Licence 1/08 ('the Licence'). This covers an area totalling 6,420 sq km, and includes both onshore and offshore acreage in Southern Denmark in the productive Western Baltic region of the South Permian Basin ('the Danica Resources Project'). The project is New World's third since listing on AIM in May 2011.

Further to receiving the results of the CPR, the Company anticipates negotiating and finalising the definitive transaction agreements, in the form of a Farm-Out Agreement, with the current operator of the Licence, Danica Resources ApS, as well as an amendment to the underlying Joint Operating Agreement naming New World's Danish subsidiaries as parties and operator.

Key findings of the CPR:

·; Licence 1/08 located in an under-explored area in Southern Denmark and on trend to the west of the well-established northern platform edge of the Southern Permian Basin ('SPB')

·; The Licence is on trend with an analogous geological setting, 20km to the west of several producing Zechstein oil and gas fields

·; Features visible on the available seismic data have potential to be reefal build-ups - further seismic coverage will ascertain whether the geometrics of the identified leads support the hypothesis of reefal build-ups and/or carbonate shoals

·; Providing drilling is successful and the reefs and or shoal facies can be proved, RPS state it is likely that they will make excellent reservoirs

·; Next step to acquire further 2-D seismic to identify a robust prospect(s) and reduce the current geological risk from 1 in 12 to approximately 1 in 8 for the Zechstein

·; Danica Resources ApS has identified 15 leads in the Triassic Bunter Sandstone and seven leads (four onshore, three offshore) and one prospect - the Als prospect in the Zechstein that could share similar properties to producing fields in Germany and Poland

·; The Als prospect, located in the far west of the Licence, has two target horizons, the Zechstein and the Rotliegendes

·; Results for the Als Prospect (reported on a gross 100% working interest basis):

o Zechstein

§ Prospective volumes: P90 40MMbo; P50 97MMbo; P10 192MMbo

§ Indicative Success Case NPV10 values: P90 US$419MM; P50 US$1.039 Billion; P10 US$2.007 Billion

§ Rated 1 in 8 probability of geologic success by RPS

o Rotliegendes

§ Prospective volumes: P90 575 Bcf; P50 1.401 Tcf: P10 3.380 Tcf

§ Indicative Success Case NPV10 values: P90 US$569MM; P50 US$1.400 Billion; P10 US$3.310 Billion

§ Rated 1 in 9 probability of geologic success by RPS

·; Both intervals on the Als prospect can most likely be targeted from an onshore location and may well make the prospect 'drill-ready'

·; The Lower Triassic Bunter Sandstone, a productive reservoir in various fields in Europe, and the Upper Triassic Gassum Sandstone intervals can be considered likely reservoirs

·; According to RPS, seal issues do not present a major risk to any of the potential reservoirs although each individual prospect, as they are worked up, will need to be evaluated on an individual basis

·; RPS' opinion is that this is an interesting opportunity to assess early to mid- stage exploration in a well thought through but, as yet, unproven extension to a number of potential plays. As such the terms and forward commitments are appropriate to high grade the existing leads into drillable prospects subject to positive results

Note: As referred to below, New World will on execution of definitive agreements have an option to obtain up to an 80% working interest ('WI'), with the initial 12.5% WI to be earned following completion of a 150 km 2-D seismic programme due to be completed by 30 September 2012.

RPS will be providing updates to this report as New World completes its future acquisition and interpretation of additional 2-D seismic and combines this data with pre-existing data in an effort to further enhance the subsurface interpretation and further reduce and quantify risk. New World hopes to elevate the prospectivity of the Danica Resources Block to a drillable status upon completion of a 150km 2-D seismic programme.

New World CEO William Kelleher said, "We are highly encouraged by the results of this CPR, which confirms the essential findings of the Petroleum Engineer's report issued on 12 January 2012. The results provide significant evidence pointing to the presence of a working hydrocarbon system, underpinning our belief that the Danica Resources Project is located in a productive and highly prospective region. Based on these results, we will immediately proceed to negotiate and finalise the definitive transaction agreements, in the form of a Farm-Out Agreement, as well as an amendment to the underlying Joint Operating Agreement naming New World's Danish subsidiaries as parties and operator.

"The permitting process for 2-D seismic acquisition will begin in April 2012 and we expect to complete data acquisition for the first phase of the seismic programme by September 2012. We anticipate providing regular updates on our operations and results of the seismic interpretation as they become available.

"In the meantime, we continue to progress our other highly prospective projects including our Blue Creek Project in Belize where we have already identified two prospects with a 1 in 5 Probability of Geologic Success. At our Danica Jutland Project we remain on course to commence a seismic programme in Q2 2012. I look forward to updating shareholders on our progress."

The conclusions section of the CPR is reproduced in its entirety below:

New World has the option to earn up to 80% WI and become Operator in the 1/08 licence, onshore/offshore southern Denmark (subject to government and partner approval).

The licence is located in an under-explored area and on trend to the west of the well-established northern platform edge of the Southern Permian Basin. The current licence Operator, Danica Resources, has developed a geological model which draws on their extensive research and experience of the SPB to explore this potential extension to the established play.

In our opinion, this is an interesting opportunity to access early to mid stage exploration in a well thought through but, as yet, unproven extension to a number of potential plays. As such the terms and forward commitments are reasonable, manageable and appropriately scaled to high grade the existing leads into drillable prospects should the results prove positive.

The plan to acquire more seismic is an essential next step to identify a robust prospect (or prospects) but elements of the remaining geological risk will only be mitigated by drilling one or more wells. Key risks are the presence of reservoir quality rocks in the Zechstein and robust structural closure in the Rotliegendes and Triassic. All three plays have an element of trap, source and migration risk.

The planned acquisition of seismic and the identification of robust structures could reduce the current geological risk to approximately 1 in 8 (or better) for the Zechstein and Rotliegendes as has been proved for the Als Prospect.

The Als Prospect could benefit from further seismic data to prove the closure at both Zechstein and Rotliegendes intervals but, given the relative cost of seismic data versus that of drilling a well, it may well be the case that the value of data regarding the reservoir quality and potential hydrocarbon content may well make the Als Prospect 'drill-ready', particularly as both intervals can most likely be targeted from an onshore location.

The scoping economics run on the Als Prospect suggest that even a moderately sized discovery could be highly economic under the current terms and conditions.

Further Information:

New World signed a non-binding LOI with Danica Resources ApS granting the Company a 90-day exclusivity period in which to undertake due diligence on the Danica Resources Project in Denmark on 23 December 2011.

Danica Resources ApS is a Danish company formed for the purpose of obtaining and exploring the southern fringe of the Northern Permian Basin covered by licence 1/08 that covers an area of 1.586 million acres (~6,420km2). Danica Resources has been studying the area for some time and has developed a geological model and a number of leads based on available seismic data, an extensive surface soil geochemical survey, some well data and a number of academic papers.

Danica Resources has an 80% working interest in the licences with a single partner, Danish North Sea Fund, who is entitled to the remaining 20% working interest. Subject to New World entering into definitive agreements, the Company will have the right to acquire the entire 80% working interest held by Danica Resources ApS, subject to the approval of the Danish government and Danish North Sea Fund in the following stages:

·; Permitting, acquisition, processing and interpretation of the order of 150km of 2-D seismic to be completed by the end of the third quarter of 2012 in return for which New World would receive 12.5% working interest.

·; Permitting, acquisition, processing and interpretation of 2-D and/or 3-D seismic by 30 March 2013 deemed necessary to properly delineate drillable prospects, whereupon a further 12.5% working interest would be transferred to New World. Survey design(s) are to be agreed by 30 September 2013. If no further seismic is deemed necessary the 12.5% would be transferred immediately.

·; One well to be drilled (provided a drillable prospect has been identified) in return for which New World would receive the remaining 55% working interest.

·; On the condition that New World has assumed Danica Resources's 80% working interest, Danica Resources shall remain entitled to a 5% overriding royalty from any production of hydrocarbons. In addition, a further staged cash and share payment of $500,000 has been agreed between New World and Danica Resources.

The licence was granted to Danica Resources in March 2008 with a 6-year exploration period with provisions for extension.

The minimum work programme required by the Danish government is as follows:

·; Years 1 and 2 - Collate available data, conduct geochemical soil-survey and create geological model using available seismic and literature references. This phase has been successfully completed

·; Years 3 and 4 - Acquire 2-D to better delineate certain leads (both in the Zechstein and Rotliegendes intervals, followed by a 2-D or 3-D survey over selected leads. At the end of Year 4 a drill or drop decision must be made

·; Years 5 and 6 - A well must be drilled by the end of year six

In compiling their report, RPS Energy has used the definitions and guidelines as set out in the Petroleum Resources Management System ('PRMS') by the SPE/WPC/AAPG/SPEE in 2007 as the internationally recognised Standard required by the AIM Guidance Note.

The information contained in this announcement has been reviewed and approved by Andrew Kirchin on behalf of RPS. Mr. Kirchin has 24 years of relevant experience in the oil industry and is currently VP, Consulting (US), with RPS in Houston.

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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.