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Partial relinquishment of Licence Area
New World Oil and Gas Plc, an oil and gas operating company focused on Denmark and Belize, has announced that it has secured an extension in work programme commitment deadlines for Licence 1/08 at its Danica Resources Project in Southern Denmark to 31 January 2015.
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 and follows the extension announced on 1 October 2013.
Terms of the Licence Extension:
· Commit to a new surface geochemical survey over a minimum of two prospects to clarify the existing prospect inventory:
· Reprocess 24 2-D seismic lines (435.40km) previously acquired over the prospects and leads and integrate the interpretation with existing data;
· Commit to acquire 3-D seismic data over one or more prospect by 31 January 2015 in order to be able to commit to drill one exploration well by 31 March 2016, or relinquish the Licence; and
· If the Licence is not relinquished and New World wishes to continue with exploration by drilling one exploration well, the Danish Energy Agency will be prepared to approve an application for a further extension, such application to be submitted by 28 February 2016
In addition, New World have requested to relinquish a greater part of the offshore part of the Licence Area. Despite finding the offshore part prospective, the Company have decided that the potential of the area must first be proven onshore before investing in exploration offshore.
To date, New World has acquired a total of 205 km of 2-D seismic on Licence 1/08 and, as a result, the Company currently holds a 25% working interest in the Project.
New World CEO William Kelleher said, “This Licence extension and the agreed work commitments will be very beneficial to our on-going discussions with potential farm-in partners. Having already made progress in unlocking the value of Danica Resources through seismic acquisition and the identification of a number of prospects and leads, we look forward to further de-risking the Licence through our newly agreed work programme with our partners. We look forward to updating shareholders on our progress.”
