Friday, February 1, 2013

NEW WORLD OIL AND GAS PLUGS FIRST WELL DRILLED, WILL START DRILLING NEXT ONE THIS MONTH.-- IN NW BELIZE.

New World Oil and Gas (NEW) has plugged and abandoned a well in the Petén Basin in north-west Belize after finding insufficient hydrocarbons to merit running casing and well-testing operations.
Shares in the firm lost 44% on Monday morning to make it the heaviest faller on AIM. Interactive Investor users were trading the stock heavily, with twice as many choosing to sell as buy.
The Blue Creek #2A ST well was drilled to a measured depth of 11,650 feet on 27 January and logs and core samples were independently analysed, as well as mud logs and all other available data. It was determined that an active hydrocarbon system existed, and live oil shows were measured in the Y3 and Hillbank formations.
But after analysis and in consultation with New World's partners, Blue Creek Exploration and the government of Belize, it was determined that insufficient commercial quantities of moveable hydrocarbons were present.
The company believes the targeted trap was likely breached as a result of tectonic activity, and extensive residual oil was present along with high saturations of formation water.
New World said the significant amount of technical data produced by the Blue Creek #2 and #2A ST wells demonstrates that the company's acreage has received a petroleum charge and contains productive reservoirs. This data will also play a role during the drilling of the explorer's next well, Rio Bravo Well #1, in West Gallon Jug, for which New World is fully funded.
The location is drill ready, with a drilling pad, access road, base camp, water well and other infrastructure all in place. It is anticipated that the drilling of the well will commence in the first quarter of 2013.
Chief executive William Kelleher said, "We remain highly confident that the elements required for a working hydrocarbon system are in place in north-west Belize.
"I remain confident that we are on course to build a significant oil and gas exploration and production company and in the process create value for all shareholders."

Analyst view

Analysts at Fox Davies commented: "Today's announcement from New World is disappointing, but unfortunately is a reflection of the risks associated with exploration, more so in frontier regions.
"Investors, however, should take some comfort that the drilling proved a working hydrocarbon system, and that the lack of success in this instance is more closely associated with localised issues, opposed to wider basinal issues, which would have killed any further prospectivity.
"Given that [New World] has sufficient funds drill the next well, we remain upbeat about the company's near-term outlook."

Interactive Investor view

Investors were shocked at Friday's news, with updates as recent as 22 January striking a positive note. Drilling is always a gamble, but a lot was riding on a positive outcome from this well.
The less risk averse will see Friday's massive discount as an opportunity to buy into the stock, or at least not to sell. The company has proved through the drilling that it has a working hydrocarbon system.
This is on top of other projects in Denmark, and some positive news from any of these could send shares back the other way. But of course another dry well could spark another drop and if funds start running low the share price could be further eroded.
There was positive seismic data from the Danica Jutland Project in Denmark in September, and New World announced in January that the prospect is drill ready, but investors may have to wait for spudding, with no dates set for commencement.
It is at least positive that the further drilling at Blue Creek is fully funded and it seems that the company is keen to get on with it as soon as possible in the hope of generating some positive news flow.
The Interactive Investor discussion boards were heavy with disappointment, with 'Wrighty' commenting: "I think Wiliam Kelleher has damaged his credibility on this drill. Yes he has to talk the talk and be positive but I am surprised given this was their first drill and that they were operator.
"Will anyone ever believe an RNS of his again? Right to the last they were 'targeting a potentially significant trap' in these 'sections of interest'."
But 'Celtic Heart' was more moderate in reaction: "In my view you have two choices, join the lemmings jumping over the cliff or realise that we still have a working hydrocarbon system and wait it out.
"We did not find the oil on this occasion but the data gathered makes it a lot more likely we will on the next drill. What is the point of taking a huge hit? This is what oil exploration is all about."

2 comments:

William Conde belizehemp.com said...

It takes millions of years to create crud oil from the ground, but it only takes 3 months to produce a far superior non toxic oil from the land.
Not only is it non toxic to all concerned, but it decentralizes control of the worlds largest raw material resources (OIL & FIBER). Farmers can grow oil and fiber to augment or totally replace current practices of obtaining oil from wells and fiber from forest.
CANNABIS is natures most productive,most valuable and most useful plant of all on planet earth.
THE LAW IS A LIE and to enforce the law is no less than TREASON. What else can you call it when a law with "NO COMPELLING GOVERNMENTAL INTEREST" is strictly enforced and a war, against a plant and the people who understand and use that plant,is openly declared by the powers that be.
The cultivation of Cannabis in Belize will not only bring greater wealth to the farmers and the economy of the villages and to all who live in Belize, but will enhance the environment and lessen the toxic load on the land because it is a crop that does not need any poisons applied to it, it is an organic crop. What more can you ask, it grows without poisonous chemicals, has a greater biomass with one of the highest valued crops on earth. Almost everything made from crud oil and trees can be made from cannabis. Not only can they be made but they are better all around products. Over half of the trees cut every year are made into paper. Cannabis makes better paper and uses less chemicals in the process. Hemp seed oil makes fuel and biodegradable plastic that won't be clogging the planets' land and waters for hundreds of years to come.
Even though there are laws in almost every country on earth against cannabis it is still the number one or two cash crop in most countries world wide, and that is just for those who smoke it. If the truth be known the growing of industrial hemp for fiber and oil makes the marijuana trade look like child's play.
Only unenlightened condemning hearts absent of Gods' love could possibly wish to see the continued incarceration of their brothers and sisters for their use and understanding of God's great gift.
Geniuses 1:29 "And God said I have given you every herb.
Ezekiel 34:29 And I will rise up for them a plant of renown.
If you see it as unclean, then for you it is unclean, but as for me, it is a holy plant and a blessing to mankind.
STOP THE WAR--GIVE PEACE A CHANCE
William Conde BelizeHemp.com

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