New World Oil and Gas Plc, an oil and gas exploration and development company focused on Belize and Denmark, announced that the Rio Bravo #1 well targeting the West Gallon Jug Crest prospect commenced drilling March 1 at its Blue Creek Project in Northwest Belize. The Company's Competent Person, RPS Energy, estimates West Gallon Jug Crest to hold a P50 un-risked prospective resource of 113 million barrels of oil (MMbo) (Y1 and Y2 intervals) and a P50 un-risked Net Present Value (NPV10) of $2.6 billion on a 100 percent working interest basis.
The ThermaSource International LLC (ThermaSource), rig #104 will drill to a total depth (TD) of 8,800 feet, targeting the Upper Jurassic Margaret Creek Formation. Drilling results will be released once TD has been reached, which is expected to be by May 1, 2013.
Analysis of the technical data recorded at the Blue Creek #2 and #2A ST wells that were recently drilled at the B Crest prospect has confirmed an active hydrocarbon system exists on New World's Blue Creek and West Gallon Jug acreage. The West Gallon Jug Crest prospect is located approximately 22 miles (35 kilometers) SSW from the B Crest Prospect and is a four way structural closure that is not fault dependent, as was the case at B Crest.
New World CEO William Kelleher said, "Our first two wells in NW Belize confirmed the presence of several main elements which make up a working hydrocarbon system: source, migration and seal. An essential element, trap, was likely breeched at B Crest as a result of a leaking fault, possibly caused by late tectonic activity. Unlike B Crest however, West Gallon Jug is a structural high, and is not fault dependent in order for a trap to exist and contain oil. Hydrocarbons can migrate up and be trapped, and crucially not leak off through leaking fault planes, which is likely what happened at B Crest. As a result, we are tremendously excited by the commencement of drilling at our West Gallon Jug prospect.
"On the completion of this third well, we will have earned into 100 percent working interest in our Blue Creek Project. RPS Energy has assigned an unrisked P50 resource of 113 MMbo for West Gallon Jug which equates to a NPV10 of $2.6 billion on a 100 percent working interest basis. I look forward to working with ThermaSource again, our first class drilling contractors, as we set out to deliver our aim of making a commercial hydrocarbon discovery."