Final Results

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

30 June 2014

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

Final Results

New World Oil and Gas Plc, an oil and gas operating company, currently focused on Belize and Denmark, announces its final audited results for the year ended 31 December 2013. The audited accounts are being sent to shareholders on or around 1 July 2014 and are available on the Company's website: www.nwoilgas.com.

Chairman's Statement

Overall, 2013 was a challenging year for New World. Our drilling campaign at the Blue Creek Project in Belize failed to confirm commercial quantities of movable hydrocarbon. However, from a technical perspective, we have de-risked the project by locating three of the four elements required to make a commercial discovery, with the trap as the only remaining risk now blocking our way. With this in mind, we remain confident that our four remaining drillable prospects have the potential to contain oil. Following the completion of our earn-in steps to our work programme, New World has been assigned a 100% working interest in Blue Creek, and we are continuing to seek a partner or outside investment to defray risk and to share the costs to continue our exploration work.

In Denmark, we have proposed more technical work in the form of additional seismic reprocessing and geochem to better define our existing prospects and have been granted extensions currently through to 31 January 2015 as recently announced. This additional time will allow us to pursue on-going discussions with farm-in partners and again we look forward to further unlocking the value in these two projects.

The most significant development of 2013 has been the partnership entered into with Niel Petroleum S.A. ('Niel') for a US$25 million investment by Niel which will be used to acquire a near-term/producing asset as the Company looks to build a sustainable, multi-stage oil and gas company. Originally scheduled for completion in September 2013, the transaction has yet to be completed due to Niel not having made the funding available. The original proposals also contemplated a related conditional US$25 million debt facility. Niel has, however, paid New World a sum of US$250,000 to offset the delays in completion and has placed US$4,800,000 in escrow pending completion of the transaction. Given the matter disclosed below this will however require a new vote of independent shareholders, as recently announced.

In partnership with Niel, we have been exploring a number of potential markets, including Africa, the U.S. and the Middle East. Post period-end we have recently concluded an agreement with a Kuwaiti company, which is intended to provide access to a number of opportunities in this oil rich nation. A site visit has been concluded in Kuwait, and meetings were held with high-ranking officials in the ministries of Industry and Commerce, local business leaders, and industry professionals.

Post Period-end, in May 2014 we signed a share purchase agreement providing the mechanism for New World to become a 49% shareholder and hold a 60% economic interest in Al-Maraam with a view to fully developing Al Maram's opportunities in the oil and gas sector in Kuwait. The due diligence is still in progress, and on completion we look forward to commencing operations in Kuwait and unlocking the significant hydrocarbon potential the country has to offer in conjunction with our new partner. This is dependent upon the conclusion of the Niel subscription referred to above.

While the primary objective of the Company remains to become a multi-project oil and gas exploration and production company, we have shifted our emphasis to seeking sustainable revenues from cash generating opportunities. Along these lines, we are analyzing a number of projects in North Africa, the Middle East, the U.S. and Latin America and will keep the market informed in due course.

Financial Review

The Company has no current revenues and we are reporting a loss of US$11,945,000 for the 12 months ended 31 December 2013. We continue to keep a very tight control over our overhead and business development expenses. We have also reached an agreement with Niel for the funding of on-going overhead expenses and business development costs which may now be taken from the escrow account.

During Q1 of 2013, the Company raised US$10 million by the issue of 315,000,000 new ordinary shares, at a price of 2 pence per share. In addition, a number of shares were issued during the first six months of the year, to satisfy on-going contractual obligations. Total shares in issue now stand at 702,723,713. The Company has no ordinary shares held in Treasury.

Corporate Review

At the completion of the Niel subscription, it is expected that the composition of the Company's Board of Directors will be in line with what has previously been announced by the Company.

Mr. Grégoire Bellois, a professional geologist will be joining the New World team, as Vice-President, Exploration. Grégoire brings many years' experience in Africa and the Middle East and other areas of the world, and we look forward to working with him. He will provide a strong in-house technical support for our geoscience team.

With a view to reducing overhead costs, the Company has closed its Houston office, and it is expected that, going forward, we will be sharing office space with Niel Petroleum in both Geneva and Dubai which will contribute to a better synergy between the two companies.

Outlook

If we can complete the agreement with Al Maraam as contemplated, New World will have access to a major oil producing region which has significant reach into the global market. It is our intention to get involved in the drilling aspects of the business, in partnership with a qualified drilling contractor at a time when Kuwait has declared its intention to increase oil production from 2.8 million barrels per day, to 3.5 million barrels per day by the end of 2015.

Also of strong interest is that Al Maraam has represented to us that it has the right to export Kuwaiti crude and refined products. Our recent meetings in-country have confirmed this opportunity and Kuwait is anxious to open new markets for the increased production targets and is looking to the private sector to help in achieving these goals. We believe this will provide New World, in cooperation with established oil traders, with an opportunity to enter this potentially lucrative market.

We are deeply grateful to our shareholders for their continued support and look forward to providing updates on our progress at this transformational time.

Bill Kelleher

Chairman

30 June 2014

Operations Report

Blue Creek Project: Belize

The 100%-owned Blue Creek Project ('Blue Creek') is located in the producing Petén Basin in Northwest Belize. The 315sq km licence block is made up of two oil concessions, Blue Creek and West Gallon Jug, granted under a Production Sharing Agreement ('PSA') with the government of Belize.

The licence blocks are located in a highly prospective area 175km east of the Perenco operated >300MMbbl Xan field in Guatemala, approximately 300km south east of giant oil fields in Mexico. Closer to home, Blue Creek is 28km north west of Belize Natural Energy's producing Spanish Lookout and 18km west of its Never Delay fields which were discovered in 2005 and are currently producing approximately > 2,200 bopd. Analysis of crude oil produced in the region, (Spanish Lookout, Eagle-1, Canal Bank-1), and from oil seeps (Calla Creek), found in northwest Belize revealed that the oil originates from several different source rock sequences that lie in the deeper sub-basin to the west and northwest of the Blue Creek licence area in northern Guatemala and southern Mexico. Present day migration of at least one crude oil, (which is not biodegraded), is indicated by the shallow Calla Creek seep, located south and up-dip of the New World licence area. All of this is greatly encouraging and we remain of the view that an active working hydrocarbon system exists along the eastern margin of the Petén basin.

At the onset of 2013, we were drilling the Blue Creek #2A ST well (sidetrack) at a depth of 9,185 feet on the B Crest prospect. We successfully cored the Y3C (10,734' - 10,780') and Hill Bank (11,269' - 11,359') formations. The logs and core samples from the Blue Creek #2A ST well were independently analysed, as well as mud logs and all other available data. Although it was determined that an active hydrocarbon system exists, and live oil shows were measured in the Y3 and Hillbank formations, the discovery was not deemed commercial likely due to the targeted trap being breeched as a result of tectonic activity and therefore extensive residual oil was present along with high saturations of formation water. After consultation with all stakeholders, we plugged and abandoned BC #2A ST well and began preparations to release the drilling rig.

At the beginning of February 2013 we re-located ThermaSource International LLC rig #104 to the Rio Bravo #1 drill pad at our West Gallon Jug prospect, a four way structural closure approximately 35 km SSW from the B Crest Prospect.

We commenced drilling Rio Bravo #1 on 1 March 2013 and by the end of April 2013 the well had been drilled to a measured depth of 9,010 feet. Following analysis, and in consultation with New World's partners, Blue Creek Exploration Ltd., and the Government of Belize, it was determined that insufficient commercial quantities of moveable hydrocarbons were present to economically justify running casing and well testing operations. Our prognosis was that the primary issue in the sub-surface was that the timing of oil migration occurred prior to trap formation. Following this, we began rig-down and prepared the rig for movement to the Port of Belize City.

The remainder of 2013 (May through December) was utilized to liquidate surplus materials and equipment, make evaluations of our recent drilling campaign, and plan for a re-evaluation of our seismic and geochemical data. Also, in an effort to re-start exploration activities at Blue Creek, we have been actively searching for a farm-in partner. During this period we also resolved general sales tax issues with the Government of Belize and submitted a relinquishment plan that was approved and accepted by the GPD. Additionally, we applied for and were granted a third renewal of the Blue Creek PSA until 12 October 2015.

Denmark

Danica Resources Project: Licence 1/08

The Danica Resources Project is made up of one large licence, 1/08, totalling 1.67 million acres in the highly prospective northern margin of the Southern Permian Basin, in the Baltic region of southeast Denmark. North West Europe contains some of the world's largest gas reserves. The Permian Zechstein platform margin extends across the 1/08 licence area from North East Germany where 13 oil and gas fields are located. The Zechstein carbonate and Rotliegend sandstone gas plays are the most productive in onshore North West Europe. Additionally, Triassic sandstones, comparable to those found in the Danica Resources licence area, form highly productive reservoirs in the adjacent North Sea. The Groningen field, located in northern Netherlands in the Southern Permian Basin was discovered in 1959 and opened up the North Sea play with its 100 TCF gas discovery. To provide scale to these figures the entire UK consumes 4 TCF of natural gas per year.

As a result of work commitment completions during the period, we now have a 25% working interest in Licence 1/08. In January 2013 we announced the results of the first phase of 2-D seismic (166.44km - 11 lines) which was completed in August 2012. The resulting Competent Person's Report confirmed the original volumetric estimates and associated indicative economics for the drill ready Als prospect with P50 volumetrics remaining at 97 MMbo and 1.4 TCF of gas valued at US$2.4 billion.

Following encouraging data, a Phase 2B of 2-D seismic data acquisition was completed on the Falster and Lolland prospects, with data processing completed in April 2013. In August 2013 we released a Letter of Opinion from RPS Energy with regards to the interpretation of the 2-D data on these prospects and the integration and further evaluation resulted in the mapping of the drill-ready North Rodby Zechstein/Rotliegend prospect. North Rodby has two separate targets in the Zechstein and Rotliegendes, as with the Als prospect, and combined the two prospects have indicative volumetrics totalling 444.4 MMbbls oil (unrisked sum of individual P50, discovery case), and success case economic outcomes of NPV10 US$3.67 billion net to New World. With this in mind, a proposal was submitted to the North Sea Fund ('NSF') for the acquisition of a detailed geochemical survey over North Rodby and Falster leads and in Q4 2013 250 soil geochemical survey samples were collected and sent for processing and interpretation.

During the period an eight month extension to the licence was submitted and approved by the Danish Energy Agency ('DEA'), and post-period end, this was extended further to 31 January 2015. These extensions to our work programme will be beneficial to our on-going discussions with potential farm-in partners as we look to share the risk and cost of further exploration and potentially drilling.

Danica Jutland Project: Licences 1/09 - 2/09

The Danica Jutland Project, totalling 1.015 million acres, consists of two onshore oil and gas licences, 1/09 and 2/09, located in an underexplored area in Jutland, South Western Denmark, on the southern edge of the Northern Permian Basin. The licences are surrounded by Zechstein oil and gas production, and new discoveries including the Johan Sverdrup discovery located off the coast of Stavanger in the Norwegian North Sea that is expected to produce 120,000 to 200,000 bopd. According to RPS, the southern flank of the Northern Permian Basin can be regarded as a mirror image of the northern flank of the Southern Permian Basin where productive reservoirs have been proved in the early Zechstein cycles, notably in Poland and Germany.

New World, as operator, has the right to earn up to 80% working interest in the licences on the completion of a phased work programme, consisting of a 2-D and/or 3-D seismic acquisition programme and the drilling of one well on each licence. The Danish North Sea Fund holds the remaining 20% on a fully-paying basis.

To date New World has earned into a 25% working interest in the Danica Jutland Project following the acquisition of 55 line km of 2-D seismic data to further delineate two Triassic prospects identified on Licence 2/09 and in addition, 75 sq km of 3-D seismic over the Jensen Prospect on Licence 1/09, which has a prospective resource estimate of 48 million barrels of oil (adjusted to an 80% working interest).

The Jensen 3-D seismic survey was completed during Q1 and the data was processed and sent for interpretation. In order to allow the results of the 3-D seismic survey and some soil geochemistry work over the Jensen prospects to be incorporated into a forward work programme on these licences we requested a 6 month extension to our work programme which was granted by the DEA. During Q2, the interpretation of the 3-D data was completed resulting in the release of an updated CPR. Our understanding of the previously identified Jensen Prospect was been greatly enhanced with the data showing that instead of being just one large prospect, Jensen appears to be made up of multiple smaller structures, each with at least three separate horizons in the Zechstein and Pre-Zechstein. In aggregate, we now have indicative volumetrics and success case economic outcomes for Licences 1/09 and 2/09 totalling 591 BCFG (unrisked sum of individual P50, discovery case) and a NPV10 of US$ 655.7 million net to New World.

As with our other projects, post-period end we secured an additional licence extension to 31 January 2015 to allow time to conduct further work and complete the evaluation of the prospects defined by the 3-D survey, whilst also providing us with more time to continue on-going discussions with potential farm-in partners.

The technical content of this announcement has been reviewed and approved by William Kelleher who has been a member of the Society of Petroleum Engineers for 30 years.

FINANCIAL STATEMENTS

Group Statement of Comprehensive Income for the year ended 31 December 2013

Group Statement of Financial Position as at 31 December 2013

Company Statement of Financial Position as at 31 December 2013

Group State of Cash Flows for the year ended 31 December 2013

Company Statement of Cash Flows for the year ended 31 December 2013

Group Statement of Changes in Equity for the year ended 31 December 2013

Company Statement of Changes in Equity for the year ended 31 December 2013

Notes to the financial statements for the year ended 31 December 2013

1 Summary of significant accounting policies

General information and authorisation of financial statements

New World Oil & Gas Plc is a public limited company incorporated in Jersey. The address of its registered office is Ogier House. The Company's ordinary shares are traded on the AIM Market operating by the London Stock Exchange. The Group financial statements of New World Oil and Gas plc for the year ended 31 December 2013 were authorised for issue by the Board on 30 June 2014 and the statements of financial position signed on the Board's behalf by William C. Kelleher and Georges Sztyk.

Statement of compliance with IFRS

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies (Jersey) Law 1991. The principal accounting policies adopted by the Group and Company are set out below.

Financial risk management

The Group's principal activity of oil and gas exploration is by nature unpredictable with inherent risk exposure. In terms of general risk management the Board of Directors determine, as required, the degree to which it is appropriate to use financial instruments to mitigate risk. Currently the Company's principal financial instruments comprise cash and equity capital.

The Company does not enter into complex derivatives to manage risk, however it entered into an equity swap arrangement during the year resulting in an estimated loss of $378,000.

Foreign currency risk

Foreign exchange risk arises because the Group has operations located in various parts of the world whose functional currency is not US Dollars. The Group's net assets are exposed to currency risk giving rise to gains or losses on retranslation into US Dollars.

Liquidity risk

The Company's policy throughout the year has been to ensure that it has adequate liquidity by careful management of it's working capital.

Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The most critical estimations involve the impairment or otherwise of carrying values related to Exploration and Project Development expenses, which are performed for both the interim and annual financial statements.

Adoption of standards and interpretations

In the current year, the following new and revised Standards and Interpretations have been adopted for the amounts reported in these financial statements.

IFRS 13 Fair Value Measurement

The Group has applied IFRS 13 for the first time in the current year. IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under IFRS 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. Also, IFRS 13 includes extensive disclosure requirements.

IFRS 13 requires prospective application from 1 January 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard.

In accordance with these transitional provisions, the Group has not made any new disclosures required by IFRS 13 for the 2012 comparative period. Other than the additional disclosures, the application of IFRS 13 has not had any impact on the amounts recognised in the consolidated financial statements.

Amendments to IAS1 Presentation of Financial Statements

(as part of the Annual Improvements to IFRSs 2009; 2011 Cycle issued in May 2012)

The Annual Improvements to IFRSs 2009; 2011 have made a number of amendments to IFRSs. There are no amendments that are relevant to the Group and hence no impact for the 2013 financial statements.

Amendments to IFRS 7 Disclosures

The Group has applied the amendments to IFRS 7 Disclosures-Offsetting Financial Assets and Financial Liabilities for the first time in the current year. The amendments to IFRS 7 require entities to disclose information about rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar arrangement.

As the Group does not have any offsetting arrangements in place, the application of the amendments has had no impact on the disclosures or on the amounts recognised in the consolidated financial statements.

Standards, amendments and interpretations in issue but not effective

As at the date of authorisation of these financial statements, there were Standards and Interpretations that were in issue but are not yet effective and have not been applied in these financial statements. The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group or Company, except for additional disclosures when the relevant Standards come into effect.

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):

IFRS 9 Financial Instruments

IFRS 10 Consolidated Financial Statements

IFRS 12 Joint Arrangements

IAS2 7 (revised) Investment Entities

IAS2 8 (revised) Investments in Associates and Joint Ventures

IAS3 2 (revised) Offsetting Financial Assets and Financial Liabilities

IAS3 6 (revised) Recoverable Amount Disclosures for Non Financial Assets

IAS 39 (revised) Novation of Derivatives and Continuation of Hedge Accounting

IFRIC Interpretation 21 Levies

The Directors do not expect that the adoption of the Standards and Interpretations listed above will have a material impact on the financial statements of the Group in future periods.

Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis and on a going concern basis.

The financial report is presented in United States Dollars ($), which is the Group's functional and reporting currency, and all values are rounded to the nearest thousand dollars ($'000) unless otherwise stated.

Basis of consolidation

Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

Business combinations and goodwill

On acquisition, the assets and liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill.

Revenue recognition

The Group has not yet commenced generating revenue.

Segment Reporting

Operating segments are reported in a manner consistent with internal reporting provided to the chief operating decision-maker who is responsible for allocated resources and assessing performance of the geographical segments. The chief operating decision-maker has been identified as Bill Kelleher as Executive Chairman of the Board of Directors.

Foreign Currencies

Transactions in currencies other than US Dollars are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on retranslation are included in the income statement for the period. On consolidation, the results of overseas operations are translated into US Dollars at rates approximating to those ruling when the transactions took place. All assets and liabilities of the overseas operations are translated at the rate ruling at the balance sheet date.

Taxation

No charge to Jersey corporation tax arises on the results for the year due to the applicable zero tax rate.

The subsidiary companies have not generated any income therefore there are no tax consequences arising from Danish or Belize corporate income tax matters.

Tangible Fixed Assets

Tangible fixed assets comprise furniture and fixtures and plant and equipment and are depreciated on a straight line basis at annual rates that will reduce book values to estimated residual values over their estimated useful lines as follows:

Furniture - 25% per annum

Plant and Equipment - 20% per annum

Intangible Fixed Assets

Exploration, evaluation and development expenditure incurred, together with appropriate overhead expenses such as project management and related travel, is accumulated in respect of each identifiable area of interest.

These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves of oil and/or gas.

Accumulated costs in relation to an abandoned area are written off in full in the year in which the decision to abandon is made.

Impairment of intangible assets

At each balance sheet date the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If there is such indication then an estimate of the asset's recoverable amount is performed and compared to the carrying amount.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a re-valued amount, in which case the impairment loss is treated as a revaluation decrease.

Financial instruments

Financial assets and financial liabilities are recognised on the statement of financial position when the Group has become a party to the contractual provisions of the instrument.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, cash at bank and short term deposits with banks and similar financial institutions.

Inventory

Inventories, representing drilling and related consumables, are stated at the lower of cost and net realisable value, cost being determined by the first-in first-out method.

Trade and other receivables

Trade and other receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

Trade and other payables

Trade and other payables are non interest bearing and are stated at their nominal value.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Share-based payments

The Group operates a Long Term Incentive Plan to allow certain Directors (being the Directors at the time of initial AIM admission) to be granted awards in respect of Ordinary Shares in the Company. The Group also operates a Discretionary Annual Bonus Plan which may be paid in Ordinary Shares. As at 31 December 2013 no amounts have been provided or accrued in relation to the above schemes.

The fair value of Options granted to the Non-Executive Directors to subscribe for Ordinary Shares is recognised as an expense equal to the fair value of the services provided.

Additionally, the fair value of warrants to subscribe for Ordinary Shares as part of the fees under Placing arrangements and as part of the fees under the Re-Admission to AIM have been recognised as an expense or allocated to share issue costs as applicable.

The fair value of warrants and options granted is determined using the Black-Scholes valuation model.

Going Concern

The Group closely monitors and manages its liquidity risk, regularly preparing cash forecasts. Further to the subscription offer, the Directors consider that the Group has adequate liquid resources to continue in operational existence for at least the 12 month period from the date of approval of these financial statements.

2 Turnover and segmental analysis

Segment information is presented in respect of the Group's management and internal reporting structure. The Group had no revenue during the year.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Operating and Geographical segments

The Group comprises the following operating segments:

Corporate - Parent company administrative costs, general business development and AIM related costs.

Exploration & development - costs in relation to the Group's direct oil and gas exploration operations.