New World Oil and Gas says that following a meeting with the Minister of Energy in Belize, the Company has negotiated a 12 month extension to its Production Sharing Agreement for the Group's Blue Creek Project in Belize. The PSA which was previously due to expire on 31 October 2015 will now terminate on 31 October 2016.
While the expiry date of the PSA is extended, the approval restricts the Group's future activity to areas high-graded by New World Oil and Gas (Belize Operations) Ltd. (the PSA holder and a subsidiary of the Company) in its extension application and areas identified as viable drilling targets by the seismic programme conducted in 2012-2013 - namely the A and C Prospects.
New World Non-Executive Chairman Christopher Einchcomb said,'We are delighted to have secured a 12 month extension to the Group's Blue Creek PSA as it gives us the opportunity to continue our current negotiations with potential partners on continuing operations. We continue to analyse different drilling techniques with a view to maximizing our potential chances of success whilst at the same time reducing the net cost to the Group should we decide to conduct future drilling operations. I look forward to updating shareholders on our progress.'