4th Mar 2013 07:00
New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas
4 March 2013
New World Oil and Gas Plc ('New World' or 'the Company')
Commencement of Drilling of Rio Bravo #1 Well,
West Gallon Jug Crest Prospect, Belize
New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, is pleased to announce that the Rio Bravo #1 well targeting the West Gallon Jug Crest prospect commenced drilling on 1 March 2013, at its Blue Creek Project ('Blue Creek' or 'the Project') in Northwest Belize. The Company's Competent Person, RPS Energy, estimates West Gallon Jug Crest to hold a P50 un-risked prospective resource of 113 million barrels of oil ('MMbo') (Y1 and Y2 intervals) and a P50 un-risked Net Present Value ('NPV10') of US$2.6 billion on a 100% working interest basis.
The ThermaSource International LLC ('ThermaSource'), rig #104 will drill to a total depth ('TD') of 8,800ft, targeting the Upper Jurassic Margaret Creek Formation. Drilling results will be released once TD has been reached, which is expected to be by 1 May 2013.
Analysis of the technical data recorded at the Blue Creek #2 and #2A ST wells that were recently drilled at the B Crest prospect has confirmed an active hydrocarbon system exists on New World's Blue Creek and West Gallon Jug acreage. The West Gallon Jug Crest prospect is located approximately 35 km SSW from the B Crest Prospect and is a four way structural closure that is not fault dependent, as was the case at B Crest.
New World CEO William Kelleher said, "Our first two wells in NW Belize confirmed the presence of several main elements which make up a working hydrocarbon system: source, migration and seal. An essential element, trap, was likely breeched at B Crest as a result of a leaking fault, possibly caused by late tectonic activity. Unlike B Crest however, West Gallon Jug is a structural high, and is not fault dependent in order for a trap to exist and contain oil. Hydrocarbons can migrate up and be trapped, and crucially not leak off through leaking fault planes, which is likely what happened at B Crest. As a result, we are tremendously excited by the commencement of drilling at our West Gallon Jug prospect.
"On the completion of this third well, we will have earned into 100% working interest in our Blue Creek Project. RPS Energy has assigned an unrisked P50 resource of 113MMbo for West Gallon Jug which equates to a NPV10 of US$2.6billion on a 100% working interest basis. I look forward to working with ThermaSource again, our first class drilling contractors, as we set out to deliver our aim of making a commercial hydrocarbon discovery."
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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. At Blue Creek in Belize drilling operations are due to commence at the West Gallon Jug Crest prospect in Q1 2013. 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.
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