New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, announces that the Blue Creek #2A ST well located in the productive Petén Basin in Northwest Belize was drilled to a measured depth of 11,650 feet on 27 January 2013. After careful analysis, and in consultation with New World's partners, Blue Creek Exploration Ltd., and the Government of Belize, it was determined that insufficient commercial quantities of moveable hydrocarbons were present to merit running casing and well testing operations. As a result, the Company has decided to plug and abandon the well.
The logs and core samples from the Blue Creek #2A ST well have been independently analysed, as well as mud logs and all other available data. It has been determined an active hydrocarbon system exists, and live oil shows were measured in the Y3 and Hillbank formations. The Company believes the targeted trap was likely breeched as a result of tectonic activity and extensive residual oil was present along with high saturations of formation water.
The significant amount of technical data produced by the Blue Creek #2 and #2A ST wells demonstrate that the New World acreage has received a petroleum charge and contains productive reservoirs. This data will also play an important role during the drilling of the Company's next well, the Rio Bravo Well #1, in West Gallon Jug, known as West Gallon Jug Crest, for which the Company is fully funded.
At this time, the West Gallon Jug Crest location is drill ready, with a drilling pad, access road, base camp, water well and other infrastructure all in place. It is anticipated that the drilling of the Rio Bravo #1 well will commence in Q1 2013. The well is planned to be drilled to a depth of 8,400 feet. As reported in the Re-Admission Document dated 3 July 2012, the West Gallon Jug Crest prospect shows P50 un-risked prospective resources of 113 million barrels of oil ('MMbo'), with a P50 Net Present Value ('NPV10') of US$2.6 billion.
| Drill Ready Prospects || P50 un-risked prospective resources || P50 NPV10 || Expected Timetable |
| West Gallon Jug Crest || 113 MMbo || US$2.6 billion || H2 2012 |
| A || 124 MMbo || US$3.2 billion || H1 2013 |
| Total || 237 MMbo || US$5.8 billion || |
Note: figures are stated on a gross 100% WI ('working interest') basis
Following the drilling of the Blue Creek #2 vertical and #2A sidetrack wells, New World's working interest in the Blue Creek Project, where the Company has identified multiple leads and prospects, will increase to 75%, subject to approval by the Government of Belize.
New World CEO William Kelleher said, "Analysis of the data gathered from the Blue Creek #2A and Blue Creek 2A ST wells points to the migration of huge quantities of oil through this area. Combined with the presence of a reservoir ideal for oil production, and a large, extensive anhydrite seal, we remain highly confident that the elements required for a working hydrocarbon system are in place in North West Belize. As highlighted by B Crest, trap remains the key outstanding element required for success in this area and, with multiple prospects already identified, we believe it is only a matter of time before we locate a trap of significant size and in the process make a commercial hydrocarbon discovery. With this in mind, we look forward to commencing drilling operations in the West Gallon Jug Crest prospect later this quarter for which we are fully funded and where the geologic trap mechanism remains independent of B Crest.
"Our operations team have done a tremendous job on the vertical and deviated wells and many obstacles were overcome and much valuable information was acquired that will now be applied to our next well. Our two other drill ready prospects in Blue Creek, and the multiple prospects identified in our three licence blocks in Denmark will mark the next significant milestones for the Company and I look forward to providing updates on these exciting prospects in due course. I remain confident that we are on course to build a significant oil and gas exploration and production company and in the process create value for all shareholders."
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