Good morning, Please see below a note from Shore Capital regarding New World Oil & Gas Plc (AIM: NEW) following the Companys fantastic news that following improvements to the FOA it has reduced the cost of drilling by a third to $US13.5m and increased the potential for early production at its Blue Creek project in Belize having elected to reduce the target depth for three shallower wells to a formation already producing in nearby fields as opposed to two deeper ones.

Two identified prospects at Blue Creek are estimated to have gross P50 volumetrics of 294 MMbbl with a combined EMV of US$1.51 billion.

All three of the Companys projects now have highly encouraging volumetrics and with Blue Creek close to drilling stage, this is an exciting time for the Company. The full announcement is pasted below. Best regards, Lottie
NEW WORLD OIL & GAS+ (NEW, 10.6p, No Recommendation) - Amendment of agreement in Belize.

E&P company New World Oil & Gas has announced the agreement of new and improved farm-in terms at its Blue Creek project in Belize, where the company is earning into an interest of up to 100% through staged investments in seismic and drilling.

Under the amended agreement with its partner, the expected total cost of drilling obligations has fallen by a third to US$13.5m due to a reduction in target depth, with three wells now due to be drilled through the base of the highly prospective "Y2" structure.

With materially reduced drilling costs and the potential for early production now envisaged under the amended agreement, we are pleased to see todays update, which comes very soon after news of an update to the competent persons report (CPR) covering New Worlds Danica Jutland project.

We are revisiting our Risked NAV estimate of 25p/share following these positive developments. Shore Capital Stockbrokers Limited acts as Broker to New World Oil and Gas Plc. Craig Howie - 0151 600 3703 [cid:image001.jpg@01CD4A18.56AD9760] New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas 14 June 2012 New World Oil and Gas Plc (New World or the Company) Improved Terms for the Blue Creek Farm-Out Agreement New World Oil and Gas Plc, a company focussed on making investments in the oil and gas sector and its partner, Blue Creek Exploration Limited (BCE), have agreed to amend the terms of the Farm-Out Agreement entered into between them on 15 June 2011 (the BCE FOA) pursuant to an amendment agreement entered into between New World and BCE on 30 May 2012 (the Amendment).

Subject to standard regulatory approval, the Amendment will lead to a substantial reduction in the cost of a drilling programme should the Company elect to proceed with drilling, as well as provide New World with the opportunity to commence production at Blue Creek earlier than previously anticipated. The BCE FOA covers a 420 sq km area and is referred to as the Blue Creek Project (the Project) in the Pet�n Basin in Northwest Belize in which the Company, as operator, currently has a 25% working interest.

On the completion of the revised staged work programme (detailed in Table 1), New World has the option to increase its working interest in the Project to 100%.

Two identified prospects at Blue Creek, "A" and "B Crest", are estimated to have gross P50 volumetrics of 294MMbbl from just two of four potential horizons in the subsurface and a combined Expected Monetary Value of US$1.51 billion. Key elements of the Amendment: � Total cost of drilling obligations to earn into a 100% working interest in the Project reduced by a third to US$13.5 million compared to the original estimate of US$20 million due to reduction in target depth to 5,500 ft (base Y2) from 11,300 ft (upper Margaret Creek) � Three wells to be drilled through the base of the Yallback Formation(Y2) as opposed to two previously targeting the Hillbank and Margaret Creek Formations � Y2 is the most prospective formation when compared to nearby producing fields and includes all estimated gross P50 volumetrics of 294MMbbl with a combined Expected Monetary Value (EMV10) of $1.51bn as reported by RPS � Total success case combined discovery NPV10 US $9.1 billion � First of the three wells will earn an additional 21.6% working interest in the Project, with the remaining two each earning 21.7% - bringing New Worlds working interest up to 100% � If commercial quantities of oil are discovered in one or more of the three wells, they will be put on test and into early production for the purposes of generating early cash flow � All oil production will be sold at world oil price, (WTI), as the Gulf Coast of the US is only a 2-1/2 day steam away from off take in Belize � A fourth well to 200 ft below the Margaret Creek formation will be drilled from cash flow derived form one or more of the three obligation wells � RPS reports the probability of geologic success to be 1 in 5 New World CEO William Kelleher said, "This amendment to the FOA is a reflection of the rapid progress we have made in identifying and derisking six prospects at Blue Creek.

Under the new and more favourable terms, if we elect to undertake a drilling programme, we can now drill to the Yallback, a formation already producing in nearby fields that is located at approximately half the depth of our original target.

As a result, our drilling costs will be materially reduced and, should a commercial oil discovery be made, lead to oil production commencing at Blue Creek much sooner than anticipated minimizing the time required to enter into cash flow.

I look forward to providing the market with further updates in due course." Table 1 - BCE Farm-Out Work in Programme Deliverable Farmor (Blue Creek Exploration) Farmee (New World Oil and Gas Plc) 45 line km 2-D seismic (Phase 1 - complete) 87.5% 12.5% 125 line km 2-D seismic (Phase 2 - complete) 75% 25% 61 line km 2-D seismic (Phase 3)
65% 35% Completion of 1st Exploration Well
43.4% 56.6% Completion of 2nd Exploration Well
21.7% 78.3% Completion of 3rd Exploration Well
0% 100%
* *ENDS* * 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.