Interim Results

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

25 September 2012

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

Unaudited Interim Results

New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, announces its unaudited interim results for the six months ended 30 June 2012.

Highlights

·; Significant progress made at flagship Blue Creek Project in Belize with the completion of Phases 3 and 4 of a seismic acquisition programme and a 60% improvement of geologic risk with prospects now at a drill ready status

·; Three drill ready prospects now identified at Blue Creek with a combined P50 volumetrics of 329MMbo and NPV10 of US$8.1 billion, based on a 100% working interest, calculated by the Company and confirmed by Competent Person RPS Energy

·; Amendment of Blue Creek Farm-Out Agreement resulting in a 28% reduction of drilling costs and re-targeting of the already producing Yalbac Formation

·; Readmission on AIM as an Operating Company in order to commence drilling

·; A 5% Farm-down of working interest in Blue Creek to drilling contractors, ThermaSource International LLC, reducing drilling costs by a further 25%

·; Drilling to commence at Blue Creek B Crest Prospect on or before 1 October 2012, with results expected in mid November 2012; drilling of West Gallon Jug Crest to follow in late 2012

·; Danica Resources Project acquired in the Baltic region of South West Denmark with P50 volumetrics of the drillable Als Prospect totalling 1.4 TCF of recoverable gas and 97 MMbbls of recoverable oil and a NPV10 of US$2.4 billion, based on a 100% working interest, uncovered by RPS Energy

·; Phase 2a of a seismic acquisition programme completed at the Danica Jutland Project in Denmark with a continued seismic response to gas presence and a reduction in risk to a 1 in 5 Possibility of Geological Success

·; Drilling in Denmark to commence in 2013

Chairman's Statement

I am delighted to report on the exceptional progress made during the period towards the achievement of our overall goal of creating significant value for our shareholders. The period has seen us successfully de-risk our three highly prospective projects located in proven hydrocarbon basins in Belize (Blue Creek) and Denmark (Danica Jutland and Danica Resources), each of which represents tremendous potential upside for the Company. As a result, we are now poised to commence a three-well drilling programme at our Blue Creek Project in Belize, where we have identified P50 gross prospective resources of 329 million barrels of oil ('MMbo') with an indicative multi-discovery success case Net Present Value ('NPV10') of US$8.13 billion on a 100% working interest basis. Our achievements during the first half of the year will ensure that the next six months will be a highly exciting time for the Company as we continue to work hard to build a leading multi-asset oil and gas exploration and production company.

Belize

Blue Creek Project

We are delighted with the progress made at our flagship Blue Creek Project ('Blue Creek') in the producing Petén Basin in northwest Belize, where we have successfully de-risked our drill-ready prospects by greater than 60% from a 1 in 12 to a 1 in 5 probability of geologic success ('POSg'). As a result, we are set to spud our first well in the coming weeks. On the completion of Phase 3 of a seismic acquisition programme on the project, RPS Energy ('RPS'), our Competent Person, released an update to the Competent Person's Report ('CPR') as set out in the Admission Document dated 29 June 2012. This not only confirmed the prospectivity of our two identified drill ready prospects, A and B Crest, but also identified a third drill ready prospect, West Gallon Jug Crest, with P50 volumetrics of 113MMbo and an NPV10 of US$2.6 billion. This increases the total P50 volumetrics for these three prospects in Belize to 329MMbo with an indicative upside success case NPV10 to >US$8.13 billion on a 100% working interest basis.

We have also successfully improved the terms of the Farm-Out Agreement ('FOA') with our partner in Belize, Blue Creek Exploration. On completion, this will allow New World to earn up to a 100% working interest in the project. The first of these amendments, announced in February 2012, was an agreed 10% increase of our working interest on the completion of the 2-D seismic acquisition programme. Having announced the formal assignment of our 25% working interest at Blue Creek in May 2012 on the completion of the second phase of seismic, the amendment allows us to be assigned a 35% interest on the completion of the fourth and final stage of the programme. We expect this formal assignment to be made by the Belize Ministry of Natural Resources and the Environment shortly as we have now completed our four phase seismic programme.

We are focused on closely managing our costs. To this end, we have negotiated a reduction in the total drilling depth requirement under the Farm-Out Agreement ('FOA') in Belize. We will now drill three shallower wells to a depth of 7,000ft, targeting the more prospective Yalbac Formation, as opposed to the two original wells proposed to be drilled through the base Jurassic at 11,300ft. Importantly, the nearby Spanish Lookout Mike Usher #1 well is currently producing 4,200 barrels of oil per day from the Yalbac Formation, and has shown structural similarity in terms of trap geometry to our B Crest and West Gallon Jug prospects. As a result of this change to our FOA, not only are we able to commence drilling sooner than anticipated, but the costs of our upcoming drilling programme will be reduced materially. Drilling results from the first well are expected by mid November 2012.

Post period end and following our re-admission on AIM as an operating Company, we announced a major milestone for New World. ThermaSource International LLC ('ThermaSource') was appointed as our drilling contractor in Belize. A 5% farm-down per well for the first two of our drill ready prospects, independent of our Production Sharing Agreement was signed with ThermaSource. This farm-down not only enables us to commence drilling, but also provides us with a further 25% reduction in our drilling costs. The ThermaSource drill rig #104 arrived in the country on 31 August 2012 and is currently being mobilised and rigged up in the Blue Creek area in order to commence the drilling of B Crest on or about 1 October 2012.

Denmark

Danica Resources Project

2012 got off to a good start, with the signing of a Letter of Intent for our third project, Danica Resources, located in the Baltic region of South West Denmark on 12 January. The acquisition of this project, which was finalised in April 2012, resulted in New World becoming the largest licence holder in Denmark. Combined with our Danica Jutland Project, our licenced areas now cover 2.67 million acres.

At the end of January 2012, RPS Energy issued a CPR confirming our highly experienced team's views on the prospectivity of the Danica Resources Project. This CPR highlighted the P50 volumetrics of the drillable Als Prospect totalling 1.4 trillion cubic feet ('TCF') of recoverable gas and 97 MMbbls of recoverable oil with a NPV10 of US$2.4 billion based on a 100% working interest. Notably, these impressive figures account for only one of the 22 leads/prospects on Licence 1/08 identified following the re-processing and interpretation of 388km of pre-existing seismic. In late Q2 2012 the Company commenced Phase 1 of a 161 line km 2-D seismic acquisition programme which was completed in August. Processing and interpretation is ongoing at this time, and we expect our second CPR update to be released by the beginning of November. The results of this interpretation will be a major factor in our decision to drill our Als prospect, expected in either late 2013 or early 2014.

Danica Jutland Project

In June 2012, on the completion of the first phase of seismic at our Danica Jutland Project on the southern flank of the Northern Permian Basin in southwest Denmark, we announced the volumetrics of three of ten identified prospects/leads within our two licences. The Jelling, Harboe and Jensen prospects have combined P50 in volumetrics of .598 TCF of gas and 60 MMbo and a P50 representing an upside success case NPV10 of US$1.305 billion based on a 100% working interest. The CPR released at the end of this phase indicated a POSg of 1 in 8 to 1 in 12.

Phase 2a of the 2-D seismic programme has just been completed over the two Triassic gas prospects, Jelling and Harboe, where Amplitude versus Offset ('AVO') work has shown a continued seismic response to the presence of gas. An update to the Admission Document CPR for these prospects has just been released, and results reported by RPS on Jelling and Harboe show a slight reduction of P50 gas being 166.4 Bcf and 351.2 Bcf respectively, net to New World's potential 80% working interest, totalling 517 Bcf due to the extensively improved quality of the seismic data. The indicative upside success case NPV10 of these P50 volumetrics calculated by the Company are US$176 million and US$377.6 million respectively, net to New World's working interest, totalling US$553.6 million. The 'superior' data has also uncovered one of the most positive aspects of this updated CPR report, an improvement in the POSg to a 1 in 5 for the two Triassic prospects from approximately 1 in 8 from the Admission CPR and representing significant progress in de-risking these prospects without materially effecting both the volumetrics and NPV. The Zechstein oil prospect, Jensen, which currently has P50 volumetrics of 48MMbo (80% working interest), is currently being explored further in a 70 sq km 3-D seismic programme which is expected to be complete by the end of Q1 2013 with results reported in Q2 2013.

Financial Review

As an exploration and development company with no current revenues, we are reporting a loss for the six months ended 30 June 2012 of US$1.397 million, in line with our budget.

During Q1 2012, the company raised US$13.4 million by the issue of 106,250,000 new ordinary shares, at a price of 8 pence per share. A number of new significant investors were added to our list, including Fidelity Trust of Boston. Total shares in issue now stand at 251,575,676. The Company has no ordinary shares held in Treasury.

Corporate Review

I am honoured to be working with such a strong team and our Board was further strengthened over the period by the appointment of the Senior Vice President of TNK-BP, Chris Einchcomb, as a Non-Executive Director. Chris comes with over 25 years of oil and gas exploration and new business development experience. We were delighted to welcome Chris to our team in May 2012 and believe his wealth of experience will be invaluable to our future successes.

Outlook

Since our AIM admission in May 2011, we have adhered to a simple and effective business model. This consists of acquiring late stage exploration projects in proven basins, close to world oil prices, where the Company is named as operator. Our approach of systematically reducing risk and commissioning detailed CPRs upon completion of each phase of seismic acquisition has provided strong results to date. By employing this process we have provided our shareholders with exposure to near term drilling in Belize and Denmark, coupled with considerable exploration upside. We also continue to maintain our 'pipeline of projects' as we actively assess new projects worldwide. We have also taken a view to hedge exploration risk against net income by looking at near term upstream production or exploitation assets to add to our portfolio.

The remainder of 2012 is going to be a tremendously exciting time for New World, as we commence the drilling of our first well as operator in Belize. By mid November 2012 we will know whether or not we have made an oil discovery, and I look forward to updating shareholders on every step of our drilling process. In Denmark we expect to drill up to two Triassic wells in Jutland within the next 12 months, and potentially commence drilling of the Als prospect in the Baltic Region. Although these goals seem ambitious, our rapid progress to date and the presence of one of the strongest oil and gas teams around increases my confidence in our success.

Our success to date would not be possible without our loyal shareholders, our highly competent team on the ground in Belize and Denmark, our board of directors and our team of advisers. I would like to take this opportunity to thank you all for your dedication to the New World story and I look forward to providing further regular updates as we continue our progress towards making an oil and gas discovery.

Bill Kelleher, Chairman

24 September 2012

**ENDS**

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 2.6 million 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.

Consolidated Statement of Comprehensive Income

For the 6 months ended 30 June 2012

Consolidated Statement of Financial Position

As at 30 June 2012

Consolidated Statement of Cash Flows

For the 6 months ended 30 June 2012

Consolidated Statement of Changes in Equity

For the 6 months ended 30 June 2012

Transactions with owners in their capacity as owners

Transactions with owners in their capacity as owners

Transactions with owners in their capacity as owners

Notes to the Interim Report

1. PRINCIPAL ACCOUNTING POLICIES

Presentation of Interim results

This interim report was approved by the Directors on 24 September 2012. The results for the 6 months ended 30 June 2012 have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2011 annual report and to be adopted in the 2012 annual report. The financial information contained in this interim report does not constitute statutory accounts as defined by the Companies (Jersey) Law 1991.

The interim accounts have been prepared under the historical cost convention in accordance with International Financial Reporting Standards as adopted by the European Union.

The Directors acknowledge their responsibility for the interim report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 30 June 2012 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the listing requirements for companies trading securities on the AIM market. This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2011.

The Directors are of the opinion that ongoing evaluations of the Company's interests indicate that preparation of the accounts on a going concern basis is appropriate.

2. LOSS PER SHARE

Nodiluted loss per share is presented as the effect of the exercise of outstanding warrants is to decrease the loss per share.

The comparative loss per share calculations have been adjusted to take account of the share reorganization between 26 April and 4 May 2011 which converted 100 "old" ordinary shares to 28 ordinary shares of no par value.

3. INTANGIBLE ASSETS - Exploration Expenditure

4. SHARE CAPITAL

During January and February 2012, the Company issued 5,524,000 new ordinary shares at a price of 10p per share pursuant to the exercise of warrants raising gross proceeds of $870,000.

On 9 March 2012, the Company announced the Placing of 106,250,000 new ordinary shares at a price of 8p per share to raise gross proceeds of $13.4 million. On 16 March 2012 the 106,250,00 new ordinary shares were issued together with 6,375,000 warrants to subscribe for shares at 8p per share expiring on 16 March 2015 as part of the fees under the Placing arrangements.

During the period the Company issued 5,264,378 new ordinary shares at an average price of 8.6p per share in settlement of professional fees and services rendered.

The total number of shares in issue following these issues amounted to 249,328,247.

5. OUTSTANDING WARRANTS

As at 30 June 2012 the number of outstanding warrants were:-

- 18,600,000 warrants exercisable at 5p with an expiry date of 11 May 2016;

- 69,019,000 warrants exercisable at 10p with an expiry date of 11 May 2014;

- 250,000 warrants exercisable at 10p with an expiry date of 28 June 2014;

- 3,000,000 warrants exercisable at 6p with an expiry date of 6 July 2016;

- 6,375,000 warrants exercisable at 8p with an expiry date of 16 March 2015.

6. REVENUE 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.