New World gets extension

Danica Resources: Another extension

AIM-listed New World Oil & Gas has been given an extension on its Danish licence, giving the company until the end of January 2015 to carry out work.

The explorer has secured an extension for its work programme commitment deadlines for licence 1/08 at its Danica Resources project in southern Denmark.

This is the third extension granted by the Danish Energy Agency, for the company and its partners.

Partners will carry out a new surface geochemical survey over two prospects and reprocess previously shot seismic lines.

New World has also committed to acquire 3D seismic data over one or more prospects by 31 January 2015, in order to be able to drill one exploration well by 31 March 2016.

If the company does not carry out this work the company will be able to relinquish the licence.

New World has another option to extend the licence further.

The company has chosen to give up a part of the offshore portion of the licence area determining that the potential of the onshore area is a better investment at this time.

To date, New World has shot 205 kilometres of 2D seismic over the licence.

New World chief executive William Kelleher said this extension was important for the potential farm-in deals for the licence.

“Having already made progress in unlocking the value of Danica Resources through seismic acquisition and the identification of a number of prospects and leads, we look forward to further de-risking the licence through our newly agreed work programme with our partners,” he said.

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