New World Oil & Gas has announced plans to change its status from an investment company into an oil and gas operating company in order to enable it to move forward with its projects in Belize and Denmark.
This will require shareholder approval at a general meeting and the readmission of the company to AIM, which should happen on 25 July.
New World is earning up to 100% interest in the Blue Creek project in Belize and up to 80% in Danica Jutland, onshore Denmark, and Danica Resources, offshore Denmark. So far, New World has earned 25% of Blue Creek and 12.5% of Danica Jutland. The projects have a total success case valuation of $11.8bn based on P50 resources, with most of that in Belize. However, New World still has to show that the oil and gas is there and recoverable.
The farm out agreement has been amended so New World has to invest $14.4m instead of $20m. Blue Creek is adjacent to the oil region in Mexico and north east Guatemala. New World is interpreting phase 4 seismic data and it should drill exploration wells in the second half of 2012 and 2013. There should be four wells drilled in 18 months.
A 2D seismic programme will commence on the Danica Resources project in the third quarter of this year.
New World has raised £14.6m since floating and it still has £9m in the bank. The placings were at 5p, 6p and 8p.
New World is still looking for additional exploration assets, which are in low risk countries and near to production. It is considering many more transactions but management is aware that cash and finance are finite. Management believes there are acquisition opportunities from companies that have run low on cash.
At 9.75p a share, New World is valued at £24.3m.
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