**”Take a good look at New World Oil & Gas.” (So says the Blog post-bag over the last 4 months) I’ve been literally inundated with emails for quite some time to post on the company. One particular correspondent Jason D*****, has been banging on about the company to the Blog for what seems like an age.
Jason’s musings on the company have been spot on over the last 3 months and his predictions on the sp more or less the same.**
New World Oil & Gas have been one of the stellar performers on the AIM since listing this year. Over the last 3/4 months the share price has virtually doubled, that’s good news for those who invested in May but it could be the tip of a large profits iceberg if yesterdays CPR is to be believed. The company are on a big PR charge at the moment with past, present & future Investor forums being used by New World to state their case for a slice of the Private Investor pie. At the moment New World are under the radar so now’s as good a time as any to high-light the mouth-watering potential of the company.
Yesterdays competent persons report, conducted by RPS Energy, has “confirmed the world-class potential of the Blue Creek project in Belize”. (So says the company). The project is located within the productive Petén Basin, and could contain an estimated 294 million barrels of recoverable resources (P50).
The total resource value could be in the region of $1.5 billion dollars. What’s interesting here is that the COS (chance of success) has risen from a 1 in 8 to a 1 in 5 and could shorten even further as the company and their associates begin to analyse and seek more data. The current CPR has identified two drillable prospects.
Bill Kelleher (CEO) infused “It is clear from this CPR that the hydrocarbon potential in Blue Creek is world-class,” Now that’s a big statement to make for a CEO of a top listed Footsie 100 company never mind a CEO of a recently listed AIM company! Kelleher then goes on to explain that New World will share information about the Belize asset with potential farm-in partners, via a virtual data room. “This is in response to multiple requests from interested parties”
It’s obvious that Kelleher must be speaking to interested parties re’ farm-ins. You don’t make statements like those above unless you are on solid ground. The AIM oil sector works THUS; any company, especially a tiddler, will always arouse interest from the bigger sharks who, if Kelleher is to be believed, are circling New World Oil & Gas.
The CPR findings identified two drillable prospects. Prospect A is estimated to contain between 83-400 million barrels of oil (P90-P10) and it could be worth an estimated US$1.09 billion . While Prospect B is estimated to contain 38-183 million barrels and could be worth US$440 million. New World plans to start a phase three seismic programme in January 2012 which should be completed in the first quarter of next year. This work will complete the seismic coverage on the remainder of the firms Belize blocks. Which are bordered by the nearby producing Spanish Lookout field also located in the Petén Basin. At present New World hold 12.5% which will rise to 25% upon completion of the seismic.
Now they’re not a one trick pony. The company are also becoming heavily involved in a planned work programme for 2012 at its 4,107 sq km Danica Jutland Project consisting of two licences, 1/09 and 2/09, located in the productive and highly prospective Jutland on-shore area in South Western Denmark. Their initial stake will be 12.5% and could rise to 80% depending on how the work programme pans out.
Of course it’s very early days for New World but I can see a head of steam here beginning to build up over the next 6 months as the company progress their assets in Belize & Jutland. I have spoken to the company and was impressed by their confidence, which at the time I put down to the initial buzz of listing on AIM. So how high can they go over the next 6 months or so? I can see them rising substantially if as expected the news flow is good. They could very easily hit 25/50p on potential alone. 12.5% or 25% of 1.5 billion dollars is a hefty chunk of change to be jangling in-front of oil thirsty potential farm-in partners/Private Investors & don’t forget Jutland which could firm up over the next 6 months as work to improve the COS kicks in.
New World are certainly well worth researching. Investors should get themselves down to a presentation forum. Put them on a watchlist as soon as possible. Our sources indicate that they could become one of the most followed AIM oil stocks over the next 6 months as Institutions begin to sit up and take notice.