The AIM quoted explorer is farming out a 5 per cent stake in each of three wells to ThermaSource. In return it has agreed a cut price contract for the drilling work – which sees daily drill costs reduced by a quarter.
New World says it is still in talks with oil and gas firms operating in Belize – with the aim of further reducing costs, for the mobilisation and de-mobilisation of the rig.
A drill rig is being mobilised immediately and the first well is being scheduled for October.
"The Farm-Out Agreement and drilling contract with ThermaSource are significant milestones in the development of New World as a leading, diversified oil and gas exploration company, and we are delighted to announce that we are on target to commence drilling at Blue Creek in October 2012,” said chief executive Bill Kelleher.
“Not only is this a hugely important step for the company, it also allows us to cut drilling costs by up to another 25 per cent while only farming down a 5 per cent working interest in each well of our highly prospective projects, rather than the entire production sharing agreement.”
Kelleher also emphasised that the in conjunction with contract amendments in June the drilling costs in Belize have now been halved from the originally forecast figures.
New World plans to drill the ‘B-Crest’ first. This target is independently estimated to contain 92 million barrels of oil and has a 1 in 5 possibility of success.
On the ground in Belize New World says the Blue Creek base camp is now fully functional. Work will soon begin to prepare the drill site and nearby infrastructure ready for the rigs arrival.