New World Oil & Gas has failed to secure the $25m subscription, announced in August 2013, and Kuwait joint venture and its share price has fallen by two-fifths.
The share price has fallen to 0.25p and New World requires extra funds. The original subscription was at 0.735p a share.
Niel Petroleum was going to subscribe for $25m shares but it has not come up with the money except for $4.8m of cash in escrow which is financing the running costs of the company. There is $1.75m left in the escrow account. Al Maram, which New World was to start a joint venture with, has not come up with the cash for Niel to invest. New World is talking to Niel about a smaller subscription.
New World put a €1m down payment on its investment in the joint venture using some of the Niel cash.
Shore Capital has resigned as the company’s broker.
New World has been looking at projects in California, Africa and the Middle East. The current interests are in Denmark and Belize, where New World is talking to farm-in partners.
However, the priority is cutting overheads and board costs and sorting out director loans currently due.
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