Increase in working interest at Blue Creek

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

1 February 2012

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

Amendment to Farm-Out Agreement to Increase Working Interest in Blue Creek Project, Belize

New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector, announces that Blue Creek Exploration Limited ('BCE') and the Company have agreed to amend the terms of the Farm-Out Agreement entered into between them on 15 June 2011 (the 'BCE FOA'), through the signing of an amendment agreement entered into between New World and BCE on 26 January 2012 (the 'Amendment'). Subject to standard regulatory approval, the Amendment will lead to New World being assigned a higher working interest in the Blue Creek Project, Belize, following completion of the seismic programme. 

The BCE FOA relates to the 420 sq km Blue Creek Project in the Petén Basin in Northwest Belize with current estimated gross P50 volumetrics of 294MMbbl and a combined Expected Monetary Value (EMV10) of $1.51bn. New World is the operator of the Project and currently has a 12.5% working interest with the option to raise this to 100% upon the completion of a staged work in programme. The Company has completed phase one and two of a planned three phase 2-D seismic acquisition programme, with a total of 139.15 line kilometres acquired to date at a cost of US$2,125,000.

Key elements of the Amendment

As a result of today's amendment agreement, upon the acquisition and submission for processing of an additional 61 km lines of 2-D seismic by Q2 2012 at an estimated cost of US$858,000 BCE shall transfer a further 10% working interest in the Blue Creek PSA to New World. As such, once the seismic acquisition programme has been completed, under the Amendment, the Company will have acquired a 35% working interest in the Blue Creek PSA as opposed to the 25% working interest envisaged under the previous BCE FOA.

Amended terms of the Farm-in Programme are as follows:

·; Upon the acquisition of 45 line km of 2-D seismic data over the Project BCE assigns 12.5% of its rights under the PSA to the Company's wholly-owned subsidiary New World Oil and Gas (Belize) Ltd ('NW Belize') (assigned)

·; Upon the acquisition of an additional 125 line km of 2-D seismic data over the Project, BCE must transfer and assign a further 12.5% of its rights under the PSA to NW Belize (completed, yet to be assigned)

·; Upon the acquisition of an additional 61 line km of 2-D seismic data over the Project, BCE must transfer and assign a further 10% of its rights under the PSA to NW Belize

·; Upon the drilling and completion of the first well through the Jurassic, BCE must transfer and assign a further 32.5% of its rights under the PSA to NW Belize

·; Upon the drilling and completion of the second well through the Jurassic, BCE must transfer and assign the remaining 32.5% of its rights under the PSA to NW Belize

New World CEO William Kelleher said, "We are delighted with the amendment to the FOA, as it delivers New World an additional 10% working interest in the Blue Creek PSA in return for additional seismic work that will be applied towards further high-grading our prospects. As a result, before we elect whether to proceed to the drilling phase, we will have earned a 35% interest in the highly prospective Blue Creek Project.

"We are also highly encouraged by the decision of our seismic contractor to accept New World shares in payment for the major portion of the extra 61 line kilometres of 2-D seismic, a vote of confidence in Blue Creek's prospectivity. The Company expects this new seismic work to be completed by the end of Q1 2012 and following processing and interpretation, we expect to update the Blue Creek Competent Person's Report."

The information contained in this announcement has been reviewed and approved by William Kelleher, who is a competent person as defined under the AIM rules for oil and mining companies, on behalf of New World. Mr. Kelleher has 32 years of relevant experience in the oil industry and has been a member of the Society of Petroleum Engineers for 28 years.

* *ENDS* *

Glossary:

"bn" means Billion

"EMV10" means Expected Monetary Value using an annual discount on cashflow of 10% per annum

"km" means kilometres

"MMbbls" means millions of barrels (oil)

"P50" means a 50% probability of quantities recovered equalling or exceeding the estimate

"PSA" means Production Sharing Agreement

"sq km" means square kilometre

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. 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.