New World Oil and Belize


New World Oil & Gas announced Tuesday that it has raised approximately $14 million to fund drilling in Belize and a 3D seismic program in Denmark. The junior oil firm raised the money on London’s Alternative Investment Market, where its stock is traded.

New World, whose only assets are in Belize and Denmark, is focused on onshore projects in the two countries. The company said that the proceeds from a placing of 95.6 million new shares in the business would be used to fund the drilling of a third well at its Blue Creek Project in the Petén Basin in northwest Belize and the planned 3D seismic program at its Danica Jutland project in Denmark.

The Belize well is set to target Prospect A, which has been estimated to contain P50 resources of 124 million barrels of oil.

“I am delighted with the interest and support New World has received from both new and existing shareholders, resulting in the Placing being oversubscribed. We are clearly not alone in believing New World is well placed to become a leading oil and gas company with a portfolio of projects at various stages of development,” said New World Chief Executive William Kelleher in a statement.

“We are now fully funded to complete our ongoing, three-well drilling program in Belize and, in the process, acquire a 100-percent working interest in Blue Creek… At the same time, we will continue our program of seismic acquisition in Denmark with a view to commencing drilling in 2013.”

Commenting on the fund raising, oil analysts at London-based Shore Capital said in a research note that they believed New World has progressively de-risked its projects and “delivered key milestones” in line with the firm’s planned timetable.

Original by Rigzone Tuesday, October 09, 2012

 

New World Oil and Gas Belize Operations

NWOG Blue Creek Project, Belize

Overview

The Blue Creek Project, totalling 420 sq km, consists of two onshore oil concessions, Blue Creek and West Gallon Jug, located in an under-explored area of the proven producing Petén Basin in Northwest Belize.

Within 34 days of listing, New World Oil and Gas completed a Farm-Out Agreement (‘FOA’) to acquire up to a 100% participating interest in the Production Sharing Agreement (‘PSA’) with the Belizean government over the Blue Creek Project, subject to the completion of a staged work in programme. The programme consists of a four phase 2-D seismic acquisition programme and the completion of three exploration wells. Our partner, Blue Creek Exploration Ltd, will revert to a 5% overriding royalty interest upon our having earned the full 100% participating interest.

The concessions lie due east from the Xan and Chorop oil fields of northwest Guatemala and in very close proximity to the north of the recently discovered and producing Spanish Lookout and Never Delays oil fields belonging to Belize Natural Energy Ltd. Both have reported reserves in the range of 25MMbbls and are thought to be geologically similar to the prospects developed on the Blue Creek Project thus far. The multiphase seismic interpretation points to very similar subsurface trap geometry to that of the nearby Spanish Lookout and Never Delay Fields.  Oil seeps occurring in the Blue Creek Block are identical to oil produced at Spanish Lookout, providing evidence that oil generation and migration originated from the same source rock.

The western edge of the Blue Creek Project is adjacent to a 15,000ft thick basin in NE Guatemala and Mexico. Oil migration from mature source rock kitchens areas are shown by the black arrows on the map below, which is based on aeromagnetic data with the oil properties confirmed from outset producing wells indicated by the blue dots.

 

Charts

Prospect/LeadEMV10 US$CategoryUnrisked Prospective
Resources (Y1 + Y2) MMBO
Unrisked NPV10 MM$US
B Crest506mP9038.11,015
P5092.12,360
P10182.84,386
A665mP9047.71,293
P50125.93,184
P10243.85,659
West Gallon Jug Crest270mP9046.71,076
P50113.12,593
P10224.24,776

RPS Energy in its capacity as a Competent Person has rated three out of six already identified prospects/leads as drill ready. Two of these, ‘B Crest’ and ‘A’, have been assigned a Geological Probability of Success of 1 in 5 while the third prospect, ‘West Gallon Jug Crest’, is rated at 1 in 10 due to the difficulty in positively identifying the trap. The Company has calculated an expected monetary value (EMV) discounted at 10% per annum (EMV10) for each of these prospects/lead, using a Swanson’s rule approach (see table). These figures are estimates and are not strictly stand alone as it is assumed in the Company’s economic model that, in the event that ‘B Crest’ and ‘A’ are discoveries, certain costs will be shared. The EMVs quoted are based on knowledge at this time and should not be considered as estimates of market value. The Company’s volumetric and economic modeling suggests that ‘B Crest’ and ‘A’ are likely to be commercially viable in the event of a discovery.

The West Gallon Jug Crest lead has been evaluated by New World using a modeled closure of 785 acres as shown in Figure 6.  In the event of a successful discovery in this area, it would appear that the economics are still viable, albeit returning a unit value of US$21-23 per barrel before tax, slightly lower than for the Main Blue Creek area, as a result of the harsher terrain and extra distance to market.  Data was acquired over the West Gallon Jug Creek area for the first time during Phase 3 of the seismic programme.  This identified a promising roll-over on a north-south line (BCE-11-2).  However, as a result of the national border between Belize and Guatemala forming the western edge of the licence area, dip-lines could not be acquired of sufficient length to allow for proper stacking, fold and migration over the area of interest.  The dip-lines do not show any roll-over in the east-west direction.  Nonetheless, New Word is encouraged by the location of the north-south roll-over relative to an en echelon (overlapping or step-like structural features in rock such as faults and tension fractures, that are oblique to the overall structural trend) break in the dominant northeast-southwest fault direction expressed on the topographic, further supported by the regional dip which is down to the northwest.

Three other identified prospects, the ‘B Max’, ‘C South’ and ‘C North’ leads/prospects have not been re-evaluated since the December 2011 CPR however it is noted that in the event that the prospects prove to be robust, they will represent significant upside.

Well at Blue Creek 2

 

For further information please visit www.nwoilgas.com or contact:

Enquiries:

William KelleherNew World Oil and Gas PlcTel: +1 713 447 2171
Georges SztykNew World Oil and Gas PlcTel: +1 646 407 9946
Peter SztykNew World Oil and Gas PlcTel: +1 917 215 7122
Felicity Geidt BeaumontBeaumont Cornish LimitedTel: +44 (0) 20 7628 3396
Roland CornishBeaumont Cornish LimitedTel: +44 (0) 20 7628 3396
Jerry KeenShore CapitalTel: +44 (0) 20 7408 4090
Pascal KeaneShore CapitalTel: +44 (0) 20 7408 4090
Hugo de SalisSt Brides Media & Finance LtdTel: +44 (0) 20 7236 1177
Lottie BrocklehurstSt Brides Media & Finance LtdTel: +44 (0) 20 7236 1177
Frank BuhagiarSt Brides Media & Finance LtdTel: +44 (0) 20 7236 1177

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