FOA and Drilling Contract Signed for Blue Creek

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

2 August 2012

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

Farm-Out Agreement and Drilling Contract Signed for Blue Creek Project, Belize

New World Oil and Gas Plc, an oil and gas operating company focussed on Belize and Denmark, is pleased to announce it has signed a Farm-Out Agreement ('FOA') with ThermaSource International LLC ('ThermaSource') for its Blue Creek Project located in the producing Petén Basin in Northwest Belize ('Blue Creek' or 'the Project'). This will result in substantial savings in drilling costs while minimizing dilution, and allow the Company to retain as much of the upside potential as possible. The Company has also signed a contract with ThermaSource to commence drilling in October 2012 at the 'drill ready' BCrest prospect at Blue Creek that has un-risked P50 prospective resources of 92MMbo.

Key elements of the FOA and Drilling Contract:

·; FOA signed with ThermaSource, resulting in a 25% reduction in the daily drilling rate in return for a 5% participating interest in each well drilled on the three 'drill ready' prospects identified on the Blue Creek Project in Belize

·; New World has the option of buying back their 5% participation in each well at market price within 18 months of the declaration of commerciality of any well at a value established by an agreed third party reserve auditor

·; Drilling contract signed with ThermaSource to drill one well, with the option of a second and third well

·; Mobilization of the drilling rig will start immediately with drilling operations set to begin in October 2012

·; A base camp at Blue Creek is now fully functional, and work will shortly begin on the preparation of a drilling site, access roads, and local services

·; Negotiations with other oil and gas companies operating in Belize are on-going, with the objective of further reducing costs by sharing the costs of mobilization and de-mobilization

New World CEO William Kelleher said, "The Farm-Out Agreement and drilling contract with ThermaSource are significant milestones in the development of New World as a leading, diversified oil and gas exploration company, and we are delighted to announce that we are on target to commence drilling at Blue Creek in October 2012. Not only is this a hugely important step for the Company, it also allows us to cut drilling costs by up to another 25% while only farming down a 5% working interest in each well of our highly prospective project, rather than the entire Production Sharing Agreement. Combined with the Blue Creek Farm-Out Agreement Amendment announced in June 2012, we have now reduced drilling costs by up to 50% from original forecast figures.

"In addition, B-Crest will be the first Blue Creek prospect to be drilled, with impressive un-risked P50 prospective resources of 92MMbo and a POSg of 1 in 5 as confirmed by our Competent Person. We look forward to updating shareholders on our progress and upcoming drilling results at this highly exciting time for the Company."

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

Notes

New World Oil and Gas Plc is an oil and gas operating company with three highly prospective projects in Belize and Denmark. New World is operator of all three projects where a systematic programme of seismic acquisition has resulted in multiple prospects being identified and derisked, a number of which have been classified by the Competent Person as being drill ready. Blue Creek in Belize is the Company's most advanced project where, later this year, drilling is due to commence at B Crest, a prospect with un-risked P50 prospective resources of 92MMbo and a POSg of 1 in 5 as confirmed by a Competent Person. New World also operates two projects in onshore Denmark located in producing basins covering a combined area of over 2.6million acres, making it the largest holder of acreage in Denmark.

Management is constantly evaluating additional projects that would complement the Company's growing portfolio, particularly late stage exploration or early production projects located in basins with large proven reserves that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing. As a result, the Board is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia as it looks to build a leading, diversified oil and gas company.