In addition to Its Initiatives In Belize
New World Oil and Gas has signed a farm-out agreement with ThermaSource Worldwide for brand spanking new World’s Blue Creek challenge positioned within the producing Peten Basin in north-west Belize. The deal will end in substantial financial savings in drilling prices while minimising dilution, in line with the company, and can allow New World “to retain as much of the upside potential as possible”.
New World has also signed a contract with ThermaSource to start drilling in October 2012 on the drill-prepared B Crest prospect at Blue Creek. B Crest has unrisked P50 prospective resources of ninety two million barrels of oil. Mobilisation of the drill rig will begin instantly. The drilling contract covers this first nicely and choices over a second and third properly.
The deal with ThermaSource reduces the daily drilling rate by a quarter in return for granting a 5 per cent collaborating interest in each nicely drilled on the three ‘drill-ready’ prospects identified at the Blue Creek undertaking.
New World has the option to buy again ThermaSource’s 5 per cent participation in each effectively at market worth within 18 months of any well being declared commercial, at a price established by an agreed third occasion reserves auditor.
Operationally, a base camp at Blue Creek is now totally useful and work will start shortly on preparing a drilling site, access roads and native providers. In the meantime, negotiations remain ongoing with different oil and gas firms working in Belize, with the goal of additional reducing costs by sharing the costs of rig mobilisation and demobilization.
New World chief govt William Kelleher mentioned, “The farm-out settlement and drilling contract with ThermaSource are vital milestones in the development of recent World as a number one, diversified oil and gas exploration company, and we are delighted to announce that we are on target to commence drilling at Blue Creek in October 2012.
“Not only is this a hugely essential step for the company, it additionally allows us to cut drilling costs by up to a different 25 per cent whereas only farming down a 5 per cent working curiosity in each well of our highly potential undertaking, slightly than all the production sharing agreement. Mixed with the Blue Creek farm-out settlement amendment announced in June 2012, we’ve got now lowered drilling prices by as much as 50 per cent from original forecast figures.
“In addition, B Crest shall be the primary Blue Creek prospect to be drilled, with spectacular crude oil distillation process done in a refinery unrisked P50 potential sources crude oil distillation process done in a refinery of ninety two million barrels and a POSg [probability of success] of 1 in 5 as confirmed by our Competent Particular person.”
Broker Shore Capital commented: “With reiteration of the drilling timetable and expectations of considerably reduced nicely costs, we now see scope for an additional upgrade to our latest risked NAV [internet asset value] estimate of 30p/share.” This compares with New World’s present share worth of 9.6p.
In addition to its initiatives in Belize, New World additionally operates two onshore initiatives in Denmark situated in producing basins covering a combined space of over 2.6 million acres. This makes New World the most important holder of acreage in Denmark.
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