New World Oil and Gas raises new cash to fund project acquisitions

Wednesday, Jun 29 2011 by
1
New World Oil and Gas raises new cash to fund project acquisitions

Oil and gas investing company New World Oil and Gas (LON: NEW) has raised £3.0 million in a share placing priced at 6p per share. The move comes just seven weeks after New World floated on the Alternative Investment Market, when it raised £3.8 million at 5p per share. Since then it has completed a farm-out agreement to acquire up to a 100% participating interest a production sharing agreement over the Blue Creek Project in the Petén Basin in Belize. A programme of 2D seismic acquisition will shortly get under way on that licence as part of the farm-out deal. With the company’s cash reserves earmarked to progress the Blue Creek project, New World has completed the new fundraising so it can invest in additional projects and build a portfolio of assets.

New World is headed by William Kelleher who was a founder and MD of oil and gas group Victoria Oil & Gas (LON:VOG). He runs the company with another Victoria founder, Georges Sztyk. Their strategy is to acquire interests in oil and gas companies that they think are underperforming, undeveloped and/or undervalued. The New World Oil and Gas share price fell by a quarter of a penny to 6.12p during trading this morning.

Commenting today, Mr Kelleher said: “We believe that we have made important progress since listing, having already completed the Blue Creek Project transaction in the productive Petén Basin in NW Belize. With a clear strategy in place and a pipeline of potentially exciting investments, we are delighted to have gained the support from new and existing investors for this £3 million placing, which will allow us to implement our strategy and expand our portfolio. With further funds secured, 2011 is set to be an exciting year as we continue to review additional investment opportunities within the early stage, relatively low risk oil and gas exploration arena that offer our shareholders value uplift potential through the development process.”

The 2D seismic programme at Blue Creek is designed to allow New World to focus on high grading subsurface prospectivity, before deciding on continuing to the next seismic acquisition phase and completing its further farm-out obligations. The company expects to complete the earn-in work programme obligations agreed in the farm-out, including drilling operations, by the first quarter of 2014.

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