New World Oil and Gas has received written acceptance by the Danish Energy Agency ('DEA') of it being named Operator of Licence 1/09 and 2/09 ('the Licences', or 'the Project'), totalling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark ('the Danica Jutland Project' or 'the Project'). Additionally, the DEA has approved the transfer of the 80% interest in the Licences held by Danica Jutland ApS' to New World, on completion of the earn-in work programme.

As previously announced on 24 November 2011, the North Sea Fund ('NSF'), owner of the remaining 20% of the Licences, has also approved the transfer of Operatorship to the Company, and the NSF, Danica Jutland ApS and the Company have duly signed amendments to the existing Joint Operating Agreements to reflect these changes.

Work at the Danica Jutland Licences has already begun, with the Company having hired a local Jutland contractor to begin the permitting process for the seismic programme that is planned to commence in Q2 2012. New World will also begin the tendering process for the seismic programme immediately. As NSF is a fully contributing 20% partner in the Licences, it will be contributing its 20% share for all expenditures.

Following the first phase of the seismic programme, the Company's Competent Person, RPS Energy, will be providing an updated Competent Person's Report ('CPR'), where the Board of Directors expect to see further high grading of prospective drillable prospects. This CPR is expected at the end of the second quarter 2012.

New World CEO William Kelleher said: 'The Company is delighted to be named Operator on the two highly prospective Danica Jutland licences, and we will immediately begin the permitting process for the seismic programme which is scheduled for Q2 2012. We believe the Jutland licences to be world-class assets and we fully expect a positive CPR at the conclusion of the multi phased seismic programme.

'Going forward, we continue to pursue our stated goal of achieving early production at all our projects through a multi-phase seismic approach and the extensive use of state-of-the-art technology, thereby minimising geological risk up to the point of drilling. With this is mind, I look forward to updating our shareholders on our progress at both our Danica Jutland and Blue Creek Projects on an on-going basis.'

Tags: New World O&G