OIL GAME, STOCK PRESS RELEASES HEAT UP IN BELIZE

OIL GAME, STOCK RELEASES GAINING MOMENTUM IN BELIZE

New World Oil and Gas making good progress, says Shore Capital
Wed 10:32 am by Giles Gwinnett

New World Oil and Gas (LON:NEW) continues to make good progress on the ground, says broker Shore Capital, which started coverage on the stock today.

Research analyst Craig Howie said the firm was preparing to spud its first well next year, which had the potential to create "lots of excitement".

He also estimated a risked net asset value (NAV) for the firm of 28 pence a share.

The company is currently trading at 9.88 pence per share.

New World is focused in Central America, particularly the Peten Basin, straddling the Belize and Guatemalan borders and yesterday it unveiled an updated competent persons report (CPR) which confirmed the world class potential of the Blue Creek project in Belize.

Blue Creek is now believed to contain an estimated 294 million barrels of recoverable resources (P50).

The new CPR indentified two drillable prospects which are estimated to have a 1 in 5 chance of geological success.

Following its admission to AIM in May this year, the firm agreed farm-in terms and completed two phases of seismic acquisition at Blue Creek and it is this beginning of an active work programme at Blue Creek which marks the firm's transformation from exploration start-up to proven operator, says Howie.

"To our minds, the latest CPR (which includes net present value/expected monetary value calculations) validates progress whilst instilling confidence ahead of drilling," he added.

The analyst noted that New World was preparing a third seismic survey before spudding an exploration well in the second half of 2012 and anticipated that drilling would provide an exciting catalyst for investors.

He added that planned seismic survey operations at the firm's Danica Jutland project in Denmark would also provide additional news flow in the coming months.