Good morning, Please see below a note from Shore Capital regarding New World Oil and Gas following the Companys news this morning that a Farm-Out Agreement and drilling contract has been signed with ThermaSource International for its Blue Creek Project in Belize.

With daily drilling costs reduced by 25% and the spudding of BCrest (un-risked P50 prospective resources of 92MMbo), the first of its three drill ready prospects at Blue Creek, on target for October 2012, this is fantastic news for the Company. The full release is pasted below. Best regards, Lottie
NEW WORLD OIL & GAS+ (NEW, 10p, No Recommendation) - Farm-out agreement and drilling contract.

E&P company New World has announced that it has signed a farm-out agreement and drilling contract for its Blue Creek project in Belize.

Under the terms of the deal with ThermaSource International, the daily drilling rate will be reduced by 25% in return for a 5% participating interest in each well.

New World retains a buy-back option, and also confirms that its first well in Belize (on the "B Crest" prospect) is scheduled for spudding in October 2012.

With reiteration of the drilling timetable and expectations of substantially reduced well costs, we now see scope for a further upgrade to our latest Risked NAV estimate of 30p/share. Shore Capital Stockbrokers Limited acts as Broker to New World Oil and Gas Plc. Craig Howie - 0151 600 3703 [cid:image001.png@01CD7088.E4C68110] New World Oil and Gas Plc / Index: AIM / Epic: NEW / Sector: Oil & Gas 2 August 2012 New World Oil and Gas Plc (New World or the Company) Farm-Out Agreement and Drilling Contract Signed for Blue Creek Project, Belize New World Oil and Gas Plc, an oil and gas operating company focussed on Belize and Denmark, is pleased to announce it has signed a Farm-Out Agreement (FOA) with ThermaSource International LLC (ThermaSource) for its Blue Creek Project located in the producing Pet�n Basin in Northwest Belize (Blue Creek or the Project).

This will result in substantial savings in drilling costs while minimizing dilution, and allow the Company to retain as much of the upside potential as possible.

The Company has also signed a contract with ThermaSource to commence drilling in October 2012 at the drill ready BCrest prospect at Blue Creek that has un-risked P50 prospective resources of 92MMbo. Key elements of the FOA and Drilling Contract:
* FOA signed with ThermaSource, resulting in a 25% reduction in the daily drilling rate in return for a 5% participating interest in each well drilled on the three drill ready prospects identified on the Blue Creek Project in Belize * New World has the option of buying back their 5% participation in each well at market price within 18 months of the declaration of commerciality of any well at a value established by an agreed third party reserve auditor * Drilling contract signed with ThermaSource to drill one well, with the option of a second and third well * Mobilization of the drilling rig will start immediately with drilling operations set to begin in October 2012 * A base camp at Blue Creek is now fully functional, and work will shortly begin on the preparation of a drilling site, access roads, and local services * Negotiations with other oil and gas companies operating in Belize are on-going, with the objective of further reducing costs by sharing the costs of mobilization and de-mobilization New World CEO William Kelleher said, "The Farm-Out Agreement and drilling contract with ThermaSource are significant milestones in the development of New World as a leading, diversified oil and gas exploration company, and we are delighted to announce that we are on target to commence drilling at Blue Creek in October 2012.

Not only is this a hugely important step for the Company, it also allows us to cut drilling costs by up to another 25% while only farming down a 5% working interest in each well of our highly prospective project, rather than the entire Production Sharing Agreement.

Combined with the Blue Creek Farm-Out Agreement Amendment announced in June 2012, we have now reduced drilling costs by up to 50% from original forecast figures. "In addition, B-Crest will be the first Blue Creek prospect to be drilled, with impressive un-risked P50 prospective resources of 92MMbo and a POSg of 1 in 5 as confirmed by our Competent Person.

We look forward to updating shareholders on our progress and upcoming drilling results at this highly exciting time for the Company." * *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 an oil and gas operating company with three highly prospective projects in Belize and Denmark.

New World is operator of all three projects where a systematic programme of seismic acquisition has resulted in multiple prospects being identified and derisked, a number of which have been classified by the Competent Person as being drill ready.

Blue Creek in Belize is the Companys most advanced project where, later this year, drilling is due to commence at B Crest, a prospect with un-risked P50 prospective resources of 92MMbo and a POSg of 1 in 5 as confirmed by a Competent Person.

New World also operates two projects in onshore Denmark located in producing basins covering a combined area of over 2.6million acres, making it the largest holder of acreage in Denmark. Management is constantly evaluating additional projects that would complement the Companys growing portfolio, particularly late stage exploration or early production projects located in basins with large proven reserves that, in the opinion of the Directors, are undervalued, underdeveloped or under-performing.

As a result, the Board is actively identifying exploitation opportunities in areas including Africa, South America and South East Asia as it looks to build a leading, diversified oil and gas company.