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New World Oil and Gas Plc, an oil and gas operating company focused on Denmark and Belize, has secured a six-month extension in work programme commitment deadlines for Licences 1/09 and 2/09 at its Danica Jutland Project in Western Denmark.
This extension was reportedly discussed with Danica Jutland ApS and the Danish North Sea Fund, the Company’s 20% full-paying partner, and approved by the Danish Energy Agency.
In order to secure the extension to 17 June 2014, New World has committed to a passive gas survey to expand its existing prospect inventory in an effort to determine the best possible candidate for a slim-hole well, prior to making a decision whether or not to drill a conventional well.
In addition to allowing New World additional time to conduct further work and complete the evaluation of the prospects defined by the survey, the extra six months will provide New World with more time to continue on-going discussions with potential farm-in partners.
New World has already completed the Danish licence obligations with regards to seismic acquisition. A total of 155 km of 2-D and 75 sq km of 3-D seismic data has been acquired on the Licences and, as a result, New World currently holds a 25% working interest in each licence. In addition, the Company has conducted a geochemical survey on the Licences and has also performed AVO (Amplitude vs. Offset) analyses. Since acquiring the Licences in 2012, the Company has commissioned and released a number of Competent Person’s Reports, resulting in indicative volumetrics and success case economic outcomes for the Licences totalling 591 BCFG (unrisked sum of individual P50, discovery case) and a NPV10 of US$655.7 million net to New World.
New World CEO William Kelleher said, “We are very pleased to receive this extension as it will help facilitate our continuing discussions with various candidate farm-in partners and, at the same time, allow us to build on our on-going seismic acquisition and de-risking programme. We will update the market on the results of the recent seismic activity and our discussions with potential farm-in partners in the coming weeks as we look to defray the risk and share the cost in Denmark going forward.”
