New World Oil and Gas secure extended Danica Resources Licence

PUBLISHED: 01 Oct 2013 @ 10:44 | Comments (0) |

New World Oil and Gas (LSE:NEW), an oil and gas operating company focused on Denmark and Belize, is pleased to announce that it has secured an eight-month extension in work programme commitment deadlines for Licence 1/08 at its Danica Resources Project in Southern Denmark.

This extension was discussed with Danica Resources ApS and the Danish North Sea Fund, the Company’s 20% full-paying partner, and approved by the Danish Energy Agency. In order to secure the extension, New World has committed to a geochemical survey to high grade its existing prospect inventory in an effort to determine the best possible candidate for a 3-D seismic survey prior to making a commitment to drill.

In addition to allowing New World more time to further evaluate the prospects defined by the 3-D survey, the extra eight months will enable New World to continue on-going discussions with potential farm-in partners.

New World has completed the Danish licence obligations with regards to seismic acquisition. A total of 205 km of 2-D seismic has been acquired on Licence 1/08 and, as a result, New World currently holds 25% working interest in this licence. Since acquiring the licence in 2012, the Company has commissioned and released a number of Competent Person’s Reports, identifying four drill-ready prospects in Denmark.

New World CEO William Kelleher said, “We are very pleased to receive this extension as it will help facilitate our continuing discussions with various farm-out partner candidates. With the probability of geologic success currently estimated at 1 in 8 by our competent person, it is our intention to defray the risk and share the cost at our Danish licences going forward. At the same time, a farm-out will also serve to highlight the value we have created to date through our extensive seismic acquisition programme.

“We will update the market on the results of the recent seismic activity and our discussions with potential farm-in partners in the coming weeks” sais Mr. Kelleher.

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