It said it continues to see “significant volumetric potential at Blue Creek”, its project there.
The comments follow an update from the exploration junior revealing it has increased its interest in Belize to 75% from 35%.
It is about to start drilling on its third well in the tiny Central American country, on the West Gallon Jug prospect.
The element missing was the trap for the oil. So, what showed up on the seismic was either a late trap development (created after the migration of the oil past), or late tectonic movement, which causes traps to breach.
“With live oil shows and extensive residual oil encountered at the B Crest well location, trap appears to be the key outstanding element, and West Gallon Jug is considered to be geologically independent of B Crest,” said Shore.
“We continue to see significant volumetric potential at Blue Creek, where drilling of the next well is on track to commence very soon and is fully funded by existing cash resources.”
The broker ascribes a net asset value 25 pence a share, including the company’s assets in Denmark.
At 10.50am, the stock was changing hands for 4.25 pence, unchanged on the day.
In an interview with Proactive Investors, which ran yesterday, New World chief executive Bill Kelleher said: “We continue to do what we have always done – expose our shareholders to tremendous upside,” he says wrapping up our chat.”
He was referring to the latent potential of its 40 prospects, eight of them drillable – five in Belize and three in Denmark.
Combined they add up to almost 400mln barrels of oil and more than two trillion cubic feet of gas with an indicative net present value of US$6.4bln.
“It is what the institutions are keen on and why they invest in us – the big upside,” Kelleher adds.