New World Oil and Gas Plc, a company focused on making investments in the oil and gas sector, is pleased to provide an update on the progress to date and planned work programme for 2012 at its 4,107 sq km Danica Jutland Project consisting of two licences, 1/09 and 2/09, located in the productive and highly prospective Jutland on-shore area in South Western Denmark ('the Licences').

Overview

Partner, North Sea Fund (branch of the Danish Energy Agency), formally approved New World's naming on the Joint Operating Agreements for Licences 1/09 and 2/09 of the Danica Jutland Project - formal Danish Energy Agency approval is expected in the next two weeks

Upon full completion of the earn-in work programme, New World has the option to obtain up to an 80% working interest in the Licences

Phase 1 of the 2-D seismic acquisition programme, the preliminary budget for 2012, and estimates for 2013-2015 have all been formally approved by the Licence holders

New World to begin tendering process for the 2-D seismic acquisition programme before end of Q4 2011 - expected commencement of seismic programme Q2 2012, subsequently initiating the earn-in programme

On completion of Phase 1 seismic, updated Competent Person's Report expected Q2 2012

New World CEO William Kelleher said, 'The approval from our partner, North Sea Fund, for our operatorship of Licences 1/09 and 2/09 is another encouraging step forward as we progress towards commencing a 2-D seismic acquisition programme at the Danica Jutland Project. We are very excited about the Licences due to the high level of prospectivity attributed to them by our Competent Person, RPS Energy ('RPS'), in the first Competent Person's Report ('CPR'). The encouraging results provided significant evidence pointing to the presence of a working hydrocarbon system on the southern flank of the Northern Permian Basin, where our significantly sized licences are located.

'As with the updated CPR for our Blue Creek Project in Belize, we hope to be able announce reduced geological risk in Denmark to levels that support drilling. These levels currently stand at 1 in 8 for the Zechstein and 1 in 5 for the Triassic. This approach is supported by RPS in their CPR whereby they state that the acquisition of further seismic 'is the next step to identify a robust prospect'.

'We look forward to updating our shareholders on our progress in both Belize and Denmark as we pursue our stated goals of achieving early production through the use of extensive state-of-the-art technology, thereby minimising geological risk up to the point of drilling.'

Tags: New World O&G