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UPDATE: New World Oil & Gas anticipates "tremendously exciting" remainder of year

--- Adds share price and broker comment----

New World Oil & Gas (LON:NEW) is anticipating a "tremendously exciting" remainder of 2012, as it unveiled interim results today.

The firm made "exceptional progress" in the period to June 30, it said, and is expecting to drill its first well as operator at the flagship Blue Creek project, Belize in the coming weeks.

"By mid November 2012 we will know whether or not we have made an oil discovery, and I look forward to updating shareholders on every step of our drilling process," said chairman Bill Kelleher.

"In Denmark we expect to drill up to two Triassic wells in Jutland within the next 12 months, and potentially commence drilling of the Als prospect in the Baltic Region. 

"Although these goals seem ambitious, our rapid progress to date and the presence of one of the strongest oil and gas teams around increases my confidence in our success."

Three drill ready prospects have now been identified at Blue Creek with a combined P50 volumetrics of 329 million barrels, which has an estimated value of US$8.1 billion, based on a 100 per cent working interest.

Meanwhile, yesterday, the firm said a new independent report on its Danica Jutland project in south-west Denmark has led to an increase in the geological chance of success.

This moves from a one-in-eight to one-in-five for the Jelling and Harboe prospects, according to the latest competent persons report compiled by RPS Energy, which is based on some 56 kilometres of 2-D seismic work.

It also points to a 134 million barrels of oil equivalent resource worth US$1.22 billion, based on the Jelling, Harboe and Jensen prospects and assuming an 80 per cent working interest in Danica Jutland.

Drilling in Denmark is due to begin next year.

The firm posted a loss for the period of US$1.397 million, in line with our budget, as it currently has no revenues.

Shares were up 1.03 per cent, at 12.25 pence.

House broker Shore Capital said today's update followed yesterday’s positive update to the competent person's report (CPR) for Danica Jutland and marks the beginning of a particularly exciting period of activity for the company.

"Although New World remains in the exploration phase, it has progressively de-risked its projects and delivered key milestones in line with the planned timetable. 

"We believe that drilling could inject further momentum into the share price, and continue to calculate risked net asset value of 40 pence a share."


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