New World Oil and Gas has raised the money it needs to drill two wells during the next 12 months on its Danica Jutland project in Denmark if it decides not to proceed with west testing on its Rio Bravo No.1 well in Belize, the firm reported Thursday.
New World said that it has successfully placed 315 million shares in order to raise $9.5 million, the net proceeds of which it intends to use to test and appraise the Rio Bravo No.1 well subject to a successful well-logging program. To date all operations to do with the well are on schedule and under budget, the firm added, with a total depth of 8,800 feet – targeting the Upper Jurassic Margaret Creek Formation – expected to be reached by late April.
However, New World also said that if the Rio Bravo No.1 well is not tested and appraised the funds will be used for the drilling of two wells targeting the Harboe and Jelling prospects at the company's Danica Jutland project in Denmark, as well as for the seismic interpretation and competent person's report costs of the project.
The Harboe prospect has been assigned P50 un-risked prospective resources of 351.2 billion cubic feet of gas. The Jelling prospect has been assigned P50 un-risked prospective resources of 166.4 billion cubic feet.
New World added that drilling is also continuing at its West Gallon Jug prospect in Belize. This is targeting a P50 un-risked prospective resource of 113 million barrels of oil.
New World Chief Executive William Keller commented in a statement:
"Thanks to the support and interest of both existing and new shareholders, we are now in a position where we can test and appraise the Rio Bravo No. 1 well which the company is currently drilling in Belize (assuming a successful well logging programme) or, in the event the well is not tested, we are funded to drill two wells in the forthcoming 12 months on our highly exciting Danica Jutland project, targeting the Harboe and Jelling prospects, each of which could be transformative for the company.
"In all, three wells are expected to be drilled over the next 12 months targeting combined gross P50 volumetrics of 200 million barrels of oil equivalent with a success case valuation for all three of $3.62 billion net to the company's interest. These figures represent just three out of over 40 prospects/leads identified across our portfolio to date. We are delivering on our objective of exposing our shareholders to meaningful potential upside through the systematic identification and de-risking of multiple prospects to the point of drilling. We believe that it is just a matter of time before we make a commercial hydrocarbon discovery and, in the process, create significant value for all our shareholders."
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