New World Oil & Gas (LON:NEW) said it is now fully funded for a three well drill programme in Belize as it announced an oversubscribed £8.6 mln share placing.
Chief executive Bill Kelleher says the funding is a vote of confidence in the company and its plans.
The company is issuing 95.5 mln new shares, representing around 27% of the enlarged company, priced at 9 pence each, a 14% discount to yesterday’s closing price.
"I am delighted with the interest and support New World has received from both new and existing shareholders, resulting in the placing being oversubscribed,” Kelleher said in a statement.
“We are clearly not alone in believing New World is well placed to become a leading oil and gas company with a portfolio of projects at various stages of development.
“I view the placing as a vote of confidence in the rapid progress we have made in not only acquiring three highly prospective projects in Belize and Denmark, but also in systematically identifying and derisking multiple prospects across our portfolio.”
New World kicked off an exciting period in its development with the recent spudding of the first of three wells at the Blue Creek project in Belize.
The new cash raised today will pay for the third well and as such it means that New World will have the money to complete the proposed programme. It also plans to carry out a 3D seismic survey over the Danica Jutland project in Denmark.
"We are now fully funded to complete our on-going, three well drilling programme in Belize and, in the process, acquire a 100% working interest in Blue Creek, which has current estimated gross P50 volumetrics of 329 mln barrels and a Net Present Value of US$8.1billion.
“At the same time, we will continue our programme of seismic acquisition in Denmark with a view to commencing drilling in 2013.”
“In Belize, drilling has commenced at our B Crest Prospect which our competent person has assigned a 1 in 5 chance of success and gross P50 un-risked prospective resources of 92.1 Mln barrels of oil (Y1 and Y2 intervals). We have calculated the P50 un-risked NPV of US$2.4 billion.
“We will of course update the market on our progress at this exciting time for the company, as and when it is appropriate to do so."