🕐17.04.12 - 13:54 Uhr

SHORE CAPITAL HIGHLIGHTS THE NEW WORLD OIL & GAS FOA COMPLETION FOR DANICA R
ESOURCES PROJECT, DENMARK



Good afternoon, Please see below a note from Shore Capital regarding New World Oil & Gas (AIM:NEW) following this mornings announcement detailing the formal completion of its farm-in deal with Danica Resources ApS for Licence 1/08 in Denmark, which New World has right to acquire up to an 80% working interest in.

The sizable licence, which covers 6,420 sq km of the South Permian Basin, includes the already identified Als Prospect with P50 resources of 97 million barrels of oil and 1.401 TCF of gas with a Net Present Value (NPV10) of US$2.44 billion, and provides a highly exciting project to New Worlds growing portfolio of assets across Denmark and Belize. The full announcement is pasted below. Kind regards, Lottie
NEW WORLD OIL & GAS+ (NEW, 9.1p, No Recommendation) - Completion of Danica Resources farm-in.

E&P company New World Oil & Gas has announced the formal completion of its farm-in deal with Danica Resources, covering License 1/08 in Southern Denmark.

As previously announced, New World signed a letter of intent here on 23rd December 2011 and, following successful completion, will now acquire an initial 12.5% working interest, rising to 80% once the company has made staged investments in seismic data acquisition and drilling.

We are very pleased to see completion of this farm-in deal, which provides an important third leg to New Worlds portfolio and provides exposure to some highly prospective acreage.

The relevant license covers 6,420 square kilometers, on- and offshore in the South Permian Basin and includes the A1s prospect, which has already been independently assessed to contain P50 resources of 97mmbbl oil and 1.4 tcf gas.

The first phase of a planned 150km 2-D seismic data acquisition programme is now due to commence in the current quarter at an estimated cost of US$1.4m (net to New World).

New World confirmed last month that progress continues to be made at all its projects in line with previously stated timelines.

In Belize, the company has been systematically adding value to Blue Creek, which is New Worlds most advanced project and where P50 prospective resources of almost 300mmbbl are calculated across two drill-ready prospects.

New World is now preparing to spud its first well in 2012, which we think has the potential to create lots of excitement.

We believe that Danica Resources in Denmark provides a very complementary addition to the portfolio, and look forward to the commencement of seismic data acquisition in the near future.

According to our forecasts, New World has the necessary funding to take it into the initial drilling phase at Blue Creek, where we expect the farm-out process to mature in the near future. +Shore Capital Stockbrokers Limited acts as Broker to New World Oil and Gas Plc. Craig Howie - 0151 600 3703 [cid:image001.jpg@01CD1C95.F6E46340] New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas 17 April 2012 New World Oil and Gas Plc (New World or the Company) Completes Definitive Transaction Documents for Investment in Second Oil and Gas Concession in Denmark New World Oil and Gas Plc, a company focused on making investments in the oil and gas sector, is pleased to announce that further to signing a Letter of Intent on 23 December 2011, it has completed a Farm-Out Agreement (FOA) with Danica Resources ApS, to acquire an initial 12.5% but up to an 80% working interest in the highly prospective 6,420 sq km Licence 1/08 (the Licence) which includes both onshore and offshore acreage in Southern Denmark in the productive Western Baltic region of the South Permian Basin.

Under the terms of the FOA, New World will assume operatorship of the Licence. On 25 January 2012, the Company announced the highly positive results of a Competent Persons Report (CPR) carried out by RPS Energy on the concession, that indicated, inter alia, that the already identified Als Prospect has P50 resources of 97 million barrels of oil and 1.401 TCF of gas with a Net Present Value (NPV10) of US$2.44 billion, underpinning the prospectivity of the Licence. New World will be named Operator of the Project by means of an addendum to the existing Joint Operating Agreement (JOA) between the current operator, Danica Resources ApS (80% working interest) and its single partner, Danish North Sea Fund, that holds the remaining 20% working interest.

The first phase of a planned 150km 2-D seismic acquisition programme on the Licence is due to commence in Q2 2012 at an estimated cost of US$1.4 million net to the Companys interest and will deliver an initial 12.5% working interest to New World.

New World has the option to increase this to 80% at its discretion based upon the following provisions. Key provisions of the above agreements:
* Permitting, acquisition, processing and interpretation of 150km of 2-D seismic to be completed by the end of the third quarter of 2012.

This will deliver the initial 12.5% working interest in the Licence to the Company, and at this point the licence holders must decide whether to drill a well based upon existing seismic data or acquire additional seismic data. * Permitting, acquisition, processing and interpretation of 2-D and/or 3-D seismic by 30 March 2013 to properly delineate drillable prospects, in return for which New World will receive a further 12.5% working interest.

Survey design(s) are to be agreed by 30 September 2013.

If no further seismic is deemed necessary the 12.5% would be transferred to New World immediately. * Provided a drillable prospect has been identified, one well to be drilled by the end of the third quarter 2014, in return for which New World would receive the remaining 55% working interest. * If and when New World has assumed Danica Resources ApSs 80% working interest, Danica Resources ApS shall remain entitled to a 5% overriding royalty from any production of hydrocarbons.

In addition, a further staged cash and share payment of $500,000 has been agreed between New World and Danica Resources ApS. * Provided a drillable seismic-based prospect has been identified, New World has the option to drill an additional well to the base of the Zechstein and/or Rotliegend, as mutually agreed, by no later than 30 September 2015. New World CEO William Kelleher said, "We are delighted to announce the completion of the transaction documents for the Danica Resources Project which adds a third project to our growing portfolio of highly prospective assets that includes our most advanced Blue Creek Project in Belize, with its combined P50 resource estimate of 294MMbbl and Estimated Monetary Value of US$1.53 billion.

This exciting addition increases our exposure to the productive South Permian Basin in Denmark to 10,507 sq km and includes the Als Prospect which, on its own, has a P50 resource of 97 MMbbls of oil and 1.401 TCF of gas. "The Als Prospect provides an enticing indication of the huge potential of the Danica Resources Project and, as a result, we are eager to explore the area further in the expectation of identifying additional sizeable prospects.

With this in mind, we look forward to commencing our seismic acquisition programme shortly and will update the market on our progress in due course." Further Information: New World signed a non-binding LOI with Danica Resources ApS granting the Company a 90-day exclusivity period in which to undertake due diligence on the Danica Resources Project in Denmark on 23 December 2011. Danica Resources ApS is a Danish company formed for the purpose of obtaining and exploring the southern fringe of the Northern Permian Basin covered by licence 1/08 that covers an area of 1.586 million acres (~6,420km2).

Danica Resources ApS has been studying the area for some time and has developed a geological model and a number of leads based on available seismic data, an extensive surface soil geochemical survey, some well data and a number of academic papers. Danica Resources ApS has an 80% working interest in the Licence with a single partner, Danish North Sea Fund, who holds the remaining 20% working interest.

Subject to New World fulfilling its obligations under the FOA, the Company will have the right to acquire the entire 80% working interest held by Danica Resources ApS, subject to the approval of the Danish government and Danish North Sea Fund. The Licence was granted to Danica Resources ApS and the Danish North Sea Fund in March 2008 with a 6-year exploration period, with provisions for extension.

A 6-month extension was granted in March 2012. The minimum work programme required by the Danish government is as follows: * Years 1 and 2 - Collate available data, conduct geochemical soil-survey and create geological model using available seismic and literature references.

This phase has been successfully completed * Years 3 and 4 - Acquire 2-D to better delineate certain leads (both in the Zechstein and Rotliegendes intervals, followed by a 2-D or 3-D survey over selected leads.

At the end of Year 4, the licence holders must decide whether to drill a well based upon existing seismic data or acquire additional seismic data. * Years 5 and 6 - A well must be drilled by the end of year six * * ENDS * * GLOSSARY OF TECHNICAL TERMS AAPG American Association of Petroleum Geologists AIM Guidelines Guidance covering the preparation of documentation for Disclosure purposes for Mining, Oil and Gas Companies dated June 2009 (the "AIM Guidance Note") AVO Amplitude variation with offset B Billion BTU British Thermal Unit Bbls Barrels Bo Barrel of oil closure The vertical distance from the apex of a structure to the lowest structural contour that contains the structure.

Measurements of both the areal closure and the distance from the apex to the lowest closing contour are typically incorporated in calculations of the estimated hydrocarbon content of a trap. DHI Direct hydrocarbon indicator EAGE European Association of Geoscientists and Engineers GPoS Geological Probability of Success intervals Geologic time intervals Km Kilometre M metres M Thousand MM Million MMbo Million barrels of oil migration The movement of oil from the area in which it was formed to a reservoir rock where it can accumulate Mstb Thousand stock tank barrels MMstb Million stock tank barrels MMscf/d Millions of standard cubit feet per day MMstb Million stock tank barrels NPV10 Net Present Value using an annual discount on cashflow of 10% per annum P10 At least a 10% probability that the quantities recovered will equal or exceed the estimate.

This is a measure of uncertainty not geological or commercial risk P50 At least a 50% probability that the quantities recovered will equal or exceed the estimate.

This is a measure of uncertainty not geological or commercial risk P90 At least a 90% probability that the quantities recovered will equal or exceed the estimate.

This is a measure of uncertainty not geological or commercial risk Play The combination of reservoir, seal and source that is required to promote the likelihood of a working petroleum system within any given region or fairway. prospect A potential trap which geologists believe may contain hydrocarbons prospective volumes Quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations.

In the event of discovery they are likely to be technically viable and economic to recover Reefal build-ups Lithified carbonate build-ups associated with repeated episodes of coral reef formation on a platform edge often in response to minor sea-level change cycles reservoirs A subsurface body of rock having sufficient porosity and permeability to store and transmit fluids Rotliegendes The Rotliegend is a sequence of rock strata of early Permian age found in the subsurface of large areas in western and central Europe and mainly consists of sandstone layers.

It is usually covered by the Zechstein. carbonate shoal facies Localised build up of carbonate "sand" grains, usually in shallow marine settings, which exhibit similar characteristics to conventional silica grain depositional features in response to sea-level cycles and wave action. Source When organic-rich rock such as oil shale or coal is subjected to high pressure and temperature over an extended period of time, hydrocarbons form. sq km Square kilometres Stb Stock tank barrels Scf Standard cubic feet SPB Southern Permian Basin SPE Society of Petroleum Engineers SPEE Society of Petroleum Evaluation Engineers TCF Trillion cubic feet TD Total Depth Trap An accumulation of petroleum which, by a combination of physical conditions, is prevented from escaping laterally or vertically. Triassic Of or belonging to the geologic time, system of rocks, or sedimentary deposits of the first period of the Mesozoic Era - between the Permian and Jurassic periods, about 245 million to 208 million years ago. TVD True vertical depth TVDSS True vertical depth (sub-sea) WPC World Petroleum Council WTI West Texas Intermediate Zechstein Unit of sedimentary rock layers of Middle to Late Permian (Guadalupian to Lopingian) age located in the European Permian Basin.
For further information please visit www.nwoilgas.com or contact: Enquiries: William Kelleher New World Oil and Gas Plc Tel: +1 713 447 2171 Georges Sztyk New World Oil and Gas Plc Tel: +1 514 961 2247 Peter Sztyk Felicity Geidt New World Oil and Gas Plc Beaumont Cornish Limited Tel: +1 917 215 7122 Tel: +44 (0) 20 7628 3396 Roland Cornish Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Jerry Keen Shore Capital Tel: +44 (0) 20 7408 4090 Pascal Keane Shore Capital Tel: +44 (0) 20 7408 4090
Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Notes: New World Oil and Gas Plc is focussed on making investments in the oil and gas sector, either by acquisition or by participation through Farm-Out.

The Company targets late stage exploration or early production projects that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing, located in basins with large proven reserves.

New World is currently operating in Central America and Europe where New World has acquired two highly prospective projects via Farm-Out Agreements, although the Board is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia.
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