New World Oil and Gas Signs Two Agreements to Work at Licences in Denmark
New World Oil and Gas, an oil and gas investment firm, has signed two farm-out agreements (FOAs) to acquire working interest in licences 1/09 and 2/09, located in the Jutland area in south west Denmark.
The FOAs were agreed between the company’s wholly-owned subsidiary New World Jutland and Danica Jutland, the joint-holder of the licences, which currently has an 80% working interest in the licences with a single partner, Danish North Sea Fund.
New World will be named operator of the licences, which total 4,107 sq km, the company has already commissioned a competent persons report on them, the results of which were positive.
The first phase of the acquisition programme is due to commence in the second quarter of 2012, at a total cost of US$1.25m, which will deliver an initial 12.5% working interest.
The company has the option, as set out below, to increase its working interest to 25% by investing in further seismic data, and to 80% by funding the completion of one exploration well on each licence.
Chief executive officer William Kelleher said: “We intend to progress Licences 1/09 and 2/09 through the development cycle and to this end we will shortly begin a two-phase 2-D seismic acquisition and interpretation programme which will bring us one step closer to reducing geologic risk in the licence area.
“We are also currently speaking with industry partners and considering the option of possibly farming down our interest in both projects in an effort to minimize future dilution and optimize our forward capital position.”
Source: sharecast, October 11, 2011