New World Oil and Gas (LON: NEW), the prospective oil and gas group that joined the Alternative Investment Market in early May, has secured a 45 day exclusivity period to conduct due diligence on two concessions in Belize. The company’s intermediary First Meadows Ltd, has signed a non-binding letter of intent in connection with Blue Creek and Gallon Jug, both of which are named under one 560 sq km production sharing agreement (PSA) located onshore Belize in the Petén Basin.

New World has hired RPS Energy to carry out a competent person’s report in the form of a letter of opinion in order to determine the prospectivity of the PSA. If it is satisfied with the results of that report it will farm-in to the concessions and take on the operatorship. The company said its agreement contemplates a staged investment in 2D seismic, initially of US$500,000 but up to a total of US$2 million at its discretion. That will be followed by the right to acquire further interests on the basis of an agreed drilling programme if it then decides to take the opportunity further.

William Kelleher, the chief executive of New World, said: “We are delighted that this opportunity has materialised for us so quickly. As per the company’s stated investment policy, we are initially focussed on opportunities in Central America, with particular emphasis on the highly prospective Petén Basin, Belize, where the Board believes that significant opportunities exist. This project falls within our investment criteria and is particularly exciting as it is located in very close proximity to recent commercial discoveries.”

New World was admitted to AIM on May 11 and raised £3 million before expenses in a placing priced at 5p per share. William Kelleher was a founder and MD of AIM peer Victoria Oil & Gas (LON:VOG) and runs the company with another Victoria founder, Georges Sztyk. New World is particularly interested in acquiring interests in oil and gas companies that it thinks are underperforming, undeveloped and/or undervalued.

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