Signed Farm-Out Agreements -Danica Jutland Project

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

11 October 2011

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

Signing of Definitive Transaction Documents for the Danica Jutland Licences, Denmark

New World Oil and Gas Plc, a company focused on making investments in the oil and gas sector, is pleased to announce that it has signed two Farm-Out Agreements ('FOA') to acquire working interest in Licences 1/09 and 2/09 ('the Licences', or 'the Project'), totalling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark ('the Danica Jutland Project' or 'the Project'). New World will be named Operator of the Project by means of addendums to the existing Joint Operating Agreements ('JOAs'). The Company has already commissioned a Competent Persons Report ('CPR') on the concessions, the results of which were positive, and were previously announced by the Company on 16 August 2011.

The first phase of a planned seismic acquisition programme on the Licences is due to commence in the second quarter of 2012, at an aggregate cost of US$1.25 million which will deliver an initial 12.5% working interest. The Company has the option, as set out below, to increase its working interest to 25% by the investment in further seismic data, and to 80% by funding the completion of one exploration well on each Licence.

The FOAs were agreed between the Company's wholly-owned subsidiary New World Jutland ApS ('NW Jutland')and Danica Jutland ApS ('DJ'), the joint-holder of the Licences (dated 17 May, 2009). DJ currently has an 80% working interest in the Licences with a single partner, Danish North Sea Fund, which holds a fully-paying working interest in the remaining 20% of the Licences. The FOA is subject to regulatory approval, expected within the next two weeks.

Key provisions of the above agreements:

·; Upon the completion of a prospective CPR and the signing of these FOAs obtaining regulatory approval and the signing of addendums to the JOAs ('Transaction Documents'), Danica Jutland ApS shall be paid, for both Licences, US$150,000 in cash plus US$150,000 worth of New World shares at a share price determined by taking a trailing 30-day average of the New World share price ending on the effective date (as defined in the FOAs) as published on the website of the London Stock Exchange, at the US$/GBP exchange rate published in the Financial Times on such day.

·; Thereafter, upon the acquisition of 50 line km of 2-D seismic data over each Licence (1/09 and 2/09) by 1 May 2012 at an estimated cost of US$1.25 million and re-payment of US$300,000 of DJ's historical costs ($150,000 in cash, and $150,000 in the Company's ordinary shares, payable following a placing to raise funds for the work programme under the Licences at a share price determined by taking a trailing 30-day average of the New World share price ending on the effective date (as defined in the FOAs) as published on the website of the London Stock Exchange, at the US$/GBP exchange rate published in the Financial Times on such day), DJ must transfer and assign 12.5% of its working interests under each of the Licences to NW Jutland.

·; Upon the acquisition of an additional line of 2-D or 3-D seismic data over the Project, size and design to be mutually agreed by 31 March 2013, DJ must transfer and assign a further 12.5% of its working interest under each of the Licences to NW Jutland.

·; Upon the drilling and completion of the first well through the Triassic by 31 December 2014, DJ must transfer and assign the balance of its working interests under Licence 2/09 to NW Jutland.

·; Upon the drilling and completion of the second well through the Zechstein by 31 March 2015, DJ must transfer and assign the balance of its working interests under Licence 1/09 to NW Jutland.

·; DJ will retain a 5% royalty interest following the assignment of its 80% working interest under the Licences.

·; DJ appoints New World Operations ApS (a wholly-owned subsidiary of New World Oil and Gas Plc) as Operator under the Licences.

New World CEO William Kelleher said, "This is another exciting step forward for our Company and adds a second prospective hydrocarbon project in the form of late stage low risk exploration to our existing Blue Creek concessions in Belize. Being named Operator under the Licences by our partners with the full support of the Danish government further demonstrates confidence in our team's competence and commitment.

"As with Blue Creek, we intend to progress Licences 1/09 and 2/09 through the development cycle and to this end we will shortly begin a two-phase 2-D seismic acquisition and interpretation programme which will bring us one step closer to reducing geologic risk in the licence area. This programme, set out under our Farm-Out Agreement is designed to allow the Company to focus on high-grading subsurface prospectivity and reducing risk, prior to committing to the next seismic acquisition phase and completing our further Farm-In obligations. The recent CPR completed by RPS risks the Zechstein intervals at 1 in 8 and the Triassic at 1 in 5. This is in line with our previously stated goals of high-grading the leads in the licence area under the PSA that are significant in size and potential, and which closely resemble existing producing fields to the south. Finally, we are also currently speaking with industry partners and considering the option of possibly farming down our interest in both projects in an effort to minimize future dilution and optimize our forward capital position."

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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.

New World's first acquisition was the Blue Creek Project, located in the productive Petén Basin in northwest Belize, and consists of two concessions, Blue Creek and Blue Creek South, totalling 420sq km. The Company has signed a Farm-Out Agreement for a 100% working interest in the project upon full completion of the earn-in work programme. A multi-phased 2-D seismic acquisition and interpretation programme is being undertaken, with Phase 1 complete and Phase 2 currently underway. Drilling is on target to commence in H2 2012.