New World Oil and Gas PLC : Final Results

New World Oil and Gas Plc, an oil and gas operating company focused on Belize and Denmark, announces its final audited results for the year ended 31 December 2012.The audited accounts are being sent to shareholders and are available on the Company's website: www.nwoilgas.com.

Highlights

·     Three multi-stage projects secured consisting of five highly prospective licence blocks in Belize and Denmark sharing some similar characteristics with producing fields in the region and/or nearby discoveries

·     Systematic de-risking process applied to all projects has identified combined gross P50 volumetrics of 258 MMbbls of oil and 2 TCF of natural gas reported by RPS Energy

·     Operator status attained to commence drilling at drill-ready prospects

·     Drilling programme in Belize has confirmed a working hydrocarbon system on New World's acreage - only remaining element required to make a commercial discovery is 'trap'

·     39 prospects/ leads identified in Denmark from 2-D seismic acquisition programmes

o  On-going interpretation of 2-D and 3-D seismic data

·     Farm-Out partners being sourced for all three projects to reduce New World capital costs and further de-risk

·     Fully funded to meet all financial commitments over the course of 2013 Maintaining pipeline of potential projects and continuing to evaluate new low-risk opportunities which could lead to early oil production

·     Shares are trading near cash value

Chairman's Statement

From the outset, the Board of Directors has sought to provide investors with exposure to the high rewards on offer in the oil and gas industry, while managing as many of the associated risks as possible.  This approach is rigidly applied to all our activities and at all stages of exploration, beginning with the Company's investment criteria. Priority is given to projects located in basins with a proven working hydrocarbon system, in stable jurisdictions, close to markets that enjoy world oil prices, and where we would be named as operator.  In 2012, we met these objectives.

2012 has been a transformational year for your Company.  The year has seen New World progress from an oil and gas investment company with highly prospective projects in Belize and Denmark, to an oil and gas operator with three exciting projects that we have de-risked to the point of drilling.  With our confirmed status as an operator, we drilled our first two prospects in Belize without incident, confirming the presence of many of the main elements that make up a working hydrocarbon system on our Blue Creek License.  In Denmark, 2-D and 3-D seismic data has outlined potential large structures on our three licenses, with highly exciting volumetrics as reported by RPS Energy Services.

The results of the Belize drilling campaign have been disappointing for the Company, its employees, contractors, advisors and shareholders.  This is the nature of wildcat exploration.  It is a high risk, high reward business.  We are by no means discouraged, however, and we remain committed to finding and producing oil and gas.

In line with this, New World's three projects, Blue Creek in Belize and Danica Jutland and Danica Resources in onshore Denmark, are located in highly prospective areas sharing similar characteristics with producing fields in the region and/or nearby discoveries.  Once identified, managing risk also governs the terms by which we acquire an interest in licences.  As a result, New World's acquisitions of all three projects have been structured as staged earn-ins, a 'pay as you go' programme that sees New World increase its working interest in the licences in line with pre-agreed exploration milestones.  This provides New World with the flexibility to limit capital expenditure on licences, should subsequent investigative work warrant it.

A systematic de-risking process is then applied to all of our projects involving the phased acquisition of 2-D and/or 3-D seismic.  Competent Person's Reports are commissioned at the end of each phase, providing investors as well as management with an independent assessment.  The objective is to firstly identify prospects, then delineate these further to increase the probability of geologic success until they are matured to drill-ready status through the application of advanced techniques.

By using our systematic de-risking business model, we have successfully improved the Probability of Geologic Success ('POSg') at a number of our identified prospects and leads on our acreage in Belize and Denmark.  Since our AIM Admission in May 2011, we have completed approximately 365 line kilometres of 2-D and 75 km2 of 3-D seismic in Denmark, and 231 line kilometres of 2-D seismic in Belize, resulting in 10 updated Competent Person's Reports commissioned from RPS Energy Services, identifying three drill ready prospects in Belize, two of which we have drilled, and four drill ready prospects in Denmark.  Our current total P50 resources, across all three projects, stand at approximately 258 MMbbls of oil and 2 TCF of natural gas.  This equates to an un-risked Net Present Value ('NPV10') of US$ 8.9 billion. 2012 therefore saw us expose our shareholders to tremendous value upside in terms of the number of prospects defined with company-making volumetrics attached.

De-risking through the acquisition and interpretation of seismic can only go so far.  Only drilling can determine if all the elements required to make a commercial hydrocarbon discovery are in place.  2012 saw New World drill its first well and sidetrack as operator in Belize and, post year-end, we drilled a second well at Blue Creek.  Hydrocarbons were found at all three wells with live oil on the mud logs, petrophysical log interpretations, as well as observed on the surface while circulating over the shakers during drilling from the Lower Cretaceous intervals of the Hill Bank and Y3 formations.  The Company was very encouraged by these events as it confirmed source, migration and seal though not in sufficient quantities to declare them commercial discoveries.  Late trap development or a breached trap, likely as a result of recent subsurface earth movement or geologically late tectonic activity caused faults not to seal, or in some cases such as in West Gallon Jug, the timing of the trap development occurred after oil had migrated past.  Encouragingly, the data acquired from all three wells were consistent with our geologic expectations built during the seismic acquisition and interpretation process.  The efforts moving forward will focus on locating sufficient traps, on one drill ready prospect that has an estimated 1 in 5 POSg, and four drill ready prospects / leads with at least a 1 in 8 POSg.

Our drilling programme in Belize has provided us with valuable data and information and has furthered our knowledge of the prospectivity of our acreage.  We are currently in discussions with potential farm-in partners on our Blue Creek Project, where we now hold a 100% working interest.  Once we have secured a partner, we will resume our drilling programme on the remaining drill ready prospects, all of which are geologically independent of one another.  At the same time, a farm-down would serve to provide the Company with a cash infusion, by way of recovery of a percentage of historical costs.  We are eager to resume our exploration activities in Belize, with the ultimate goal of finding commercial oil.

In 2013, we are aiming to continue our exploration programme in Denmark, where we have already identified 39 prospects / leads, a number of which have the potential to be company makers in their own right.  The Als prospect, located onshore in the Baltic region of Denmark, is part of our Danica Resources Project.  RPS has calculated and reported estimated P50 un-risked prospective recoverable resources of 1.4 TCF of gas in the Rotliegendes interval and 97MMbo in the Zechstein interval.  The combined NPV10 of Als totals US$2.4 billion.  Results of a recent 2-D seismic programme on four significantly sized leads totalling 13,485 acres are expected shortly.  These results will determine the location of a follow-up 3-D seismic survey to better assess potential prospectivity.  Data from a recently completed 3-D seismic programme on the Jensen prospect, located at our Danica Jutland Project, is currently being interpreted and evaluated by RPS for an updated CPR, due to be released shortly.

With significant exploration work completed on all our licences in Denmark, we are currently working with our 20% paying partners, the Danish North Sea Fund ('NSF'), to locate potential farm-in partners to set the stage for further exploration.  During the month of May 2013, following discussion with our partners, Danica Jutland ApS and NSF, the Company applied for and was granted a 6-month extension of the work programme deadline for the Jutland licences 1/09 and 2/09 by the Danish Energy Agency.  This extension was necessary to allow sufficient time for the farm-out process to mature without the constraint of the existing 17 May 2013 deadline.  In addition, due to more stringent regulatory and environmental procedures, the permitting process required prior to drilling is now estimated at nine months.

Financial Overview

In January 2013 the Company made the decision to plug and abandon the Blue Creek well #2 targeting the B Crest prospect in Belize.  All committed and incurred costs related to the Blue Creek #2 drilling campaign, as at 31 December 2012, totalling US$14.4 million, have been written off in the 2012 financial year.  All costs related to the acquisition, processing and interpretation of seismic and other technical data have been capitalized, pending possible future farm-out agreements.

In the early months of 2013, the Blue Creek #2A well was completed and Rio Bravo #1 well was drilled, and have subsequently also been plugged and abandoned due to the lack of commercial quantities of hydrocarbons. The announcement of the decision to plug and abandon also stated that the well had come in on time and under budget. While this statement was accurate as it related to the actual drilling of Rio Bravo #1, issues relating to technical difficulties during the later stages of the drilling campaigns, demobilization, taxation issues and significant pipe repair costs resulted in higher costs of approximately US$2.7 million for the 3 wells. All costs associated with the drilling of the wells in Belize in 2013, estimated at US$6 million will be written off in the current year.

In Denmark, due to adverse weather conditions during the 3-D seismic acquisition, a US$0.4 million cost overrun was encountered.  Given the quality and prospectivity of the results, all development costs related to these licences are being carried forward.

In March 2012 the Company placed 106,250,000 new ordinary shares at a price of 8 pence per share raising £8.5 million (approximately US$13.4 million); and in October 2012 an additional 95,555,556 new ordinary shares were placed at a price of 9 pence per share raising £8.6 million (US$13.9 million).  In 2012 New World raised total gross proceeds of £17.1 million (US$27.4 million).  The purpose of these fundraisings was to secure enough capital to complete the committed work programme in Belize, as well as the 3-D seismic programme at Danica Jutland and additional 2-D seismic at both Danica Jutland and Danica Resources projects.  During the year further funds of US$1.9 million were received from the exercise of warrants and contractual obligations totalling US$1.3 million were settled by the issue of shares.

In March 2013, the Company placed 315,000,000 new ordinary shares at a price of 2 pence per share, raising £6.3 million (US$10.0 million).  During the first quarter of 2013, the Company undertook an in-depth review of all overhead and administrative expenses, resulting in a significant reduction in the corporate cost base.  Combined with the post period end fundraising, the Company's resulting cash position ensures sufficient liquidity is in place to meet all financial commitments over the next 12 months.  All discretionary spending will be prioritized to secure farm-in partners or additional injections of liquidity.  We have also maintained our pipeline of new projects and continue to evaluate new opportunities that are low risk and could lead to early oil production through either late stage exploration, or participation in exploitation, and/or producing operations.

Outlook

New World provides a unique opportunity for investors to gain exposure to tremendous upside potential in both Belize and Denmark, developed and managed by an extremely efficient and effective management team with extensive experience.  Our two years on AIM to date have been highly active during which we have accomplished a significant amount ahead of schedule.  With a team of skilled professionals behind us, with track records of multiple commercial hydrocarbon discoveries worldwide, we believe it is only a matter of time before we are able to create tremendous upside for shareholders.  Although we have not made a commercial discovery yet, we are diligently working hard on all fronts to make this happen and remain passionate and optimistic about our future.  Although many small cap resource stocks have been suffering with recent turbulent markets, we believe that our share price, currently trading at or near cash, is certainly not a reflection of the progress made to date, let alone the upside potential our assets can bring. 

With combined P50 resources, as reported by RPS, of 258 MMbbls of oil and 2 TCF of gas for our three projects, we remain upbeat and excited to continue our operations into 2013 and beyond with the same degree of focus and commitment that remain at the core of our Company, with our ultimate goal of unlocking tremendous value for our shareholders.

Together with my fellow directors, employees, stakeholders, contractors, and host country government personnel, I would like to extend my sincerest appreciation for your continued support and we look forward to keeping you informed on a regular basis.

William C. Kelleher

Chairman

28 June 2013

Operations Report Belize - Blue Creek Project

The 100%-owned Blue Creek Project ('Blue Creek') is located in the producing Petén Basin in Northwest Belize.  The 315sq km licence block is made up of two oil concessions, Blue Creek and West Gallon Jug, granted under a Production Sharing Agreement ('PSA') with the government of Belize. 

The licence blocks are located in a highly prospective area 175km east of the Perenco operated >300MMbbl Xan field in Guatemala, approximately 300km south east of giant oil fields in Mexico.  Closer to home, Blue Creek is 28km north west of Belize Natural Energy's producing Spanish Lookout and 18km west of its Never Delay fields which were discovered in 2005 and are currently producing approximately > 3,000 bopd.  Analysis of crude oil produced in the region, (Spanish Lookout, Eagle-1, Canal Bank-1), and from oil seeps (Calla Creek), found in northwest Belize revealed that the oil originates from several different source rock sequences that lie in the deeper sub-basin to the west and northwest of the Blue Creek licence area in northern Guatemala and southern Mexico.  Present day migration of at least one crude oil, (which is not biodegraded), is indicated by the shallow Calla Creek seep, located south and up-dip of the New World licence area.  All of this greatly encouraging and we are confident that an active working hydrocarbon system exists along the eastern margin of the Petén basin.

The Company acquired the Blue Creek Project via a Farm-Out Agreement ('FOA') with its partner, Blue Creek Exploration Limited, with an agreed work programme that gave New World the option to earn a 100% working interest.  This involved the conclusion of an extensive seismic acquisition programme and the completion of three exploration wells, demonstrating that New World has been highly active since its admission to AIM.

As soon as the Blue Creek Project was secured, the Company embarked on a work programme designed to identify multiple prospects and de-risk them to the point of drilling.  This involved a four phase 2-D seismic acquisition programme consisting of 231 line kilometres and three Competent Person's Reports completed by RPS Energy Services ('RPS') which have significantly de-risked the project by greater than 60% to a Probability of Geologic Success ('POSg') of 1 in 5. 

The seismic data has shown conclusively that northwest Belize dips distinctly to the west-northwest into Guatemala and Mexico in the Petén basin source rock and kitchen area.  Seismic data has also revealed that not only has extensional tectonics created a series of west tilted fault block traps in North Western Belize (analogous to the Spanish Lookout field), but that strike-slip compressional events have created roll-over structures which are quality trapping features where oil can accumulate.

In light of the impressive data obtained from the newly acquired seismic, a number of unsolicited approaches were received from within the oil and gas industry to participate in Blue Creek.  In response to this, a virtual data room was opened for potential farm-in partners to analyse the data, a process that is managed jointly by the Company and RPS. 

2012 saw the commencement of a drilling programme in Belize.  Having reduced drilling costs in Belize by 28% due to an amendment to the Farm-Out Agreement with New World's partner Blue Creek Exploration Ltd, the first well, Blue Creek#2, commenced drilling at the end of September 2012 on the B Crest Prospect that had been assigned a P50 resource estimate of 329MMbo by RPS.  Because of the reduction in drilling costs, and having not seen clear evidence of oil accumulating in the Y1 and Y2 formations, the decision was taken to drill deeper to the Y3 and Hill Bank Formations.  Live oil shows were also encountered in these deeper formations and a well was drilled to a depth of 10,490ft for a total cost of US$4 million.  Due to a high level of water saturation in these lower formations, Blue Creek #2 was deemed to be non-commercial, but as a result of the encouraging shows, a decision was taken to drill a side-track well, the Blue Creek#2A ST, to place the bottom hole location of the well up dip to our original planned bottom hole location in an effort to locate a trap.  This side-track well also counted as the second exploration well within the FOA, earning New World an additional 35% working interest in the project.  The side-track well confirmed that the Blue Creek Project is indeed in an active working hydrocarbon system, but it was also determined that due to high water saturations in both the Y3 and Hill Bank intervals, the trap that existed at this location at some point in geologic history was breached, likely as a function of recent fault movement allowing oil which had accumulated there to leak off rendering a completion and subsequent well uneconomic.  Oil was found on the mud logs, open hole logs and was seen on shakers at the surface, but unfortunately was not on a commercial scale. 

Analysis of the well data for both the B Crest side track and the Blue Creek#2 wells indicated the lack of an effective trap as the primary reason for only non-commercial quantities of hydrocarbons being encountered at the B Crest prospect.  During drilling, it was noted that the Hill Bank formation was loaded with residual oil, suggesting that oil had already migrated through the area source rock and kitchen area, however, again some form of tectonic activity caused the fault plates to leak and allow oil which had accumulated there to continue migrating past our location to the east moving up-dip.

In March 2013, drilling commenced at a third well, Rio Bravo#1, on the West Gallon Jug Crest Prospect, approximately 35 km SSW from the B Crest.  RPS assigned West Gallon Jug P50 resources of 113MMbbo.  The well was drilled to a total depth of 9,010 ft and again, as with the B Crest wells, live oil shows were encountered in the Y3 and Hill Bank formations.  Extensive residual oil was also present along with high saturations of formation water.  It is probable, however, that the timing of oil migration occurred prior to trap formation. 

The Blue Creek#2, Blue Creek#2A and Rio Bravo#1 wells were drilled to test two structures.  Encouragingly, all three wells encountered hydrocarbons in both structures over the entire objective interval.  The wells, therefore, demonstrate the presence of an active hydrocarbon system on New World's licence area.  Furthermore, nearly all porous dolomite intervals were found to be oil-bearing and in some zones, free live oil was observed.  However, no commercial accumulations were identified, again due to high water saturations.  It is noteworthy that these two drilled prospects as well as the prospect in the adjacent licence area are all located in separate fault blocks, and, from an oil accumulation and geologic standpoint are independent of each other.  As a result, the Directors believe each structure is unique in its geologic evolution, factoring in all the elements of a working hydrocarbon system and hydrocarbon charge characteristics.

The seismic and drilling programme to date has significantly de-risked the Blue Creek Project as mentioned above.  The abundance of traces and shows of oil and gas in the recently drilled wells shows that up-dip migration from the source rocks is taking place through the Blue Creek licence area.  Clearly, hydrocarbon migration pathways formed by porous dolostone sequences, fracture systems and through leaky fault planes are present in the licence area and the adjacent licence where a recent discovery has been made by a neighbouring oil company.

A large remaining unanswered question for the Blue Creek Project is the identification and location of subsurface traps.  As Belize Natural Energy has found multiple traps in both its Spanish Lookout and Never Delay fields, the Directors are confident that a trap will be found on New World's blocks.  The Company concludes that there is clearly oil potential in the remaining undrilled structures and is currently working very hard reviewing the seismic data and integrating the new drilling results to re-evaluate and confirm continued exciting prospectivity potential.

Post period end, having completed the three exploration wells as a part of the work programme, New World has now earned a 100% working interest in the Blue Creek Project and, as a result, farm-out options are being considered with a view to funding continued exploration and further infusing the Company with additional funds. 

Denmark - Danica Jutland Project, Northern Permian Basin

The Danica Jutland Project, totalling 1.015 million acres, consists of two onshore oil and gas licences, 1/09 and 2/09, located in an underexplored area in Jutland, South Western Denmark, on the southern edge of the Northern Permian Basin.  The licences are surrounded by Zechstein oil and gas production, and new discoveries including the Johan Sverdrup discovery located off the coast of Stavanger in the Norwegian North Sea that is expected to produce 120,000 to 200,000 bopd.  According to RPS, the southern flank of the Northern Permian Basin can be regarded as a mirror image of the northern flank of the Southern Permian Basin where productive reservoirs have been proved in the early Zechstein cycles, notably in Poland and Germany. 

In October 2011, the Company secured its second project, having signed two Farm-Out Agreements for Licences 1/09 and 2/09.  New World, as operator, secured the right to earn up to 80% working interest in the licences on the completion of a phased work programme, consisting of a 2-D and/or 3-D seismic acquisition programme and the drilling of one well on each licence.  The Danish North Sea Fund holds the remaining 20% on a fully-paying basis. 

On acquisition of the licences, New World was granted access to historic 2-D seismic data and acquired just over 166 line kilometres of new seismic.  This data was used by RPS to compile an initial Competent Person's Report that was released in August 2012.  The report highlighted the prospectivity of the licences and the significant evidence pointing towards the presence of a working hydrocarbon system on the southern flank of the Northern Permian Basin, where the Company's significantly sized licences are located.  Encouragingly, the seismic data carried out in nearby areas show structurally conforming amplitude (bright spot) and/or AVO (amplitude versus offset) anomalies that are often direct indicators of gas - amplitude anomalies are found in Triassic Bunter Sandstone gas fields in the South Permian Basin, suggesting that the Licences have the potential to contain multiple productive oil, natural gas and gas condensate reservoirs.  The old 2-D data also identified two Triassic and eight Zechstein leads that, following a recommendation from RPS, New World is in the process of de-risking further by acquiring additional seismic. 

In June 2012, following the completion of Phase 1 of the 2-D seismic acquisition programme, consisting of 134 line kilometres, an updated CPR was completed by RPS.  This update included impressive volumetrics for Jelling and Harboe (Triassic gas) and Jensen (Zechstein oil) with un-risked P50 recoverable volumes totalling 525 BCF of gas in Triassic intervals and 60 MMbbls oil in the Jensen prospect in the Zechstein target with a combined P50 NPV10 of US$2.4 billion.  The CPR also upgraded the POSg from a 1 in 12 to a 1 in 8 for Jelling and Harboe, and from a 1 in 16 to a 1 in 12 for Jensen.  In addition, Phase 1 confirmed the ten leads and prospects identified in the first CPR from the existing 2-D dataset.  The completion of this first phase resulted in New World being assigned a 12.5% working interest in the Danica Jutland Project by the Danish Government in August 2012, as per the work-in programme.

Phase 2a of the seismic acquisition programme consisted of 56 line kilometres (5 lines) of 2-D seismic on the Jelling and Harboe gas prospects that confirmed the earlier AVO responses.  In an updated CPR released in September 2012, the excellent quality of the data enabled RPS to upgrade the POSg in the Triassic to 1 in 5.  As a result of the improved data, a small increase was made to the P50 volumetrics of Harboe, as well as a reduction on Jelling, creating an overall decrease of 80.9BCF.  However, the data also improved the delineation of the structure at Jelling and showed a more robust structural configuration at Harboe.  As per this latest CPR, the volumetrics and indicative P50 Success Case Economics for Jelling, Harboe and Jensen prospects combined total 134 million BOE and US$1.22 billion (80% WI).  The Directors are highly encouraged by these figures, as they only apply to three of the identified prospects on the licences.  Having completed two phases of the seismic programme, New World has earned a 25% working interest in the project.

Post period end in April 2013, it was announced that a 75sq kilometre 3-D seismic programme was completed on the Zechstein Jensen prospect.  The results are currently being assessed by RPS, and an updated CPR will be released on the completion of the interpretation.  As with the Belizean licences, discussions are taking place with potential farm-in partners for New World's operations in Denmark and an update will be made with regards to this in due course.

Denmark - Danica Resources, Baltic Region, Southern Permian Basin

The Danica Resources Project is New World's third and most recently acquired project.  It is made up of one large licence, 1/08, totalling 1.67 million acres in the highly prospective northern margin of the Southern Permian Basin, in the Baltic region of southeast Denmark.  Combined with the Danica Jutland Project, New World holds 2.685 million acres in Denmark, making it the largest holder of onshore acreage in the country.

North West Europe contains some of the world's largest gas reserves.  The Permian Zechstein platform margin extends across the 1/08 licence area from North East Germany where 13 oil and gas fields are located.  The Zechstein carbonate and Rotliegend sandstone gas plays are the most productive in onshore North West Europe.  Additionally, Triassic sandstones, comparable to those found in the Danica Resources licence area, form highly productive reservoirs in the adjacent North Sea.  The Groningen field, located in northern Netherlands in the Southern Permian Basin was discovered in 1959 and opened up the North Sea play with its 100 TCF gas discovery.  To provide scale to these figures the entire UK consumes 4 TCF of natural gas per year.

In January 2012 New World signed a Letter of Intent with Danica Resources ApS, granting the Company a 90-day exclusivity period in which to undertake due diligence and complete a CPR on Licence 1/08.  Having been given access to 388km of old 2-D seismic data, the Company appointed Mark Roach, an Independent Petroleum Engineer, to evaluate the potential of the Licence.  In his report, Roach paid particular focus on the Als Prospect, located to the far west of the Licence area, as having two targets that were assigned highly encouraging prospective resources.  In the Zechstein target at Als on the P50 scale it was reported at having 97MMbbls of oil which equates to a NPV10 of US$1.039 billion, with a POSg of 1 in 8.  The Rotliegendes target was reported as having over 1.4 TCF of gas P50 which equates to a NPV10 of US$1.4 billion, with a POSg of 1 in 9.  Als was assessed as a drillable prospect from an onshore location on the coast of Als island in the Baltic region, with two main targets at a depth of 3,200m with additional potential in the shallower Triassic.  With this in mind, and with impressive figures for just one prospect, RPS was assigned to evaluate the same seismic data in order to satisfy due diligence requirements, prior to the signing of a FOA.

RPS released their official CPR for the Danica Resources licence shortly thereafter.  All of the volumetrics, risk assignments and values were supported by RPS.  Additionally, the report confirmed the 15 leads reported by Danica Resources ApS in the Triassic Bunter Sandstone, as well as the seven Zechstein leads (four onshore and three offshore) and one drillable prospect (Als).  Interestingly, RPS also commented in its report that seal issues, one of the main components of a working hydrocarbon system, do not present a major risk to any of the potential reservoirs.

Having completed due diligence within less than a month of signing the LOI, the FOA for Danica Resources was signed in April 2012.  New World, as operator, has the right to earn up to an 80% working interest in Licence 1/08, on the completion of a staged work programme, consisting of a 2-D and/or 3-D seismic programme and the drilling of two wells.

Following a highly encouraging initial CPR, the first phase of the seismic acquisition programme was immediately commissioned.  Phase 1 consisted of 166.44 line kilometres, 11 lines, of 2-D seismic, the results of which were published post period end in January 2013.  Not only did RPS further confirm the Als Prospect volumetrics and values, but four Zechstein leads of better quality than previous vintages were identified using the new data.  To date, a total of 28 leads and one prospect have been identified on Licence 1/08, with highly impressive values for the Als prospect alone.  As a result of this first phase of seismic being completed, New World was assigned a 25% working interest in March 2013.

Recently, a 38.5km2 2-D seismic programme was completed on the Zn-2, Zn-3 and Zn-4 leads (totalling 13,485 acres) that were targeted by the Phase 1 seismic lines.  The purpose of this programme was to high grade these large leads to prospects.  Interpretation is currently underway with a view to deciding which of the leads would be the target of a 3-D seismic survey.

Group Statement of Comprehensive Income for the year ended 31 December 2012

	2012		2011
	$000's		$000's
Revenue	-		-
Dry-Well costs written off	(14,431)		-
Project Management & Development	(1,405)		(892)
Administrative expenses	(1,899)		(810)
Legal and professional costs	(957)		(909)
Loss from operations	(18,692)		(2,611)
Finance costs	-		(3)
Loss  before taxation	(18,692)		(2,614)
Income tax	-		-
Loss for the year	(18,692)		(2,614)
Other comprehensive income	-		-
Total comprehensive loss for the year attributable to equity holders of the parent	(18,692)		(2,614)
Loss per share (cents)
Basic	(7.51)		(3.27)
Diluted	(7.51)		(3.27)

Group Statement of Financial Position as at 31 December 2012

	2012		2011
	$000's		$000's
Assets Non-current assets
Tangible assets	179		-
Intangible assets	10,687		3,896
Total non-current assets	10,866		3,896
Current assets
Inventories	464		-
Trade and other receivables	2,003		153
Cash and cash equivalents	7,654		3,743
Total current assets	10,121		3,896
Total assets	20,987		7,792
Liabilities Current liabilities
Trade and other payables	(4,326)		(572)
Total liabilities	(4,326)		(572)
Net assets	16,661		7,220
Equity
Share capital	-		-
Share premium	37,714		10,351
Share-based payment reserve	770		-
Retained loss	(21,823)		(3,131)
	16,661		7,220

Company Statement of Financial Position as at 31 December 2012

	2012		2011
	$000's		$000's
Assets Non- current assets
Tangible assets	43		-
Investment in subsidiaries	26		26
Amounts due from subsidiaries	10,688		3,667
Total non-current assets	10,757		3,693
Current assets
Trade and other receivables	396		150
Cash and cash equivalents	6,641		3,670
Total current assets	7,037		3,820
Total assets	17,794		7,513
Liabilities Current liabilities
Trade and other payables	(1,150)		(293)
Total liabilities	(1,150)		(293)
Net assets	16,644		7,220
Equity
Share capital	-		-
Share premium	37,714		10,351
Share-based payment reserve	770		-
Retained loss	(21,840)		(3,131)
	16,644		7,220

Group Statement of Cash Flows for the year ended 31 December 2012

		2012		2011
		$000's		$000's
Cash outflow from operating activities
Operating loss		(18,692)		(2,611)
Depreciation		21		-
Share-settled transactions		110		113
(Increase) in receivables		(1,850)		(85)
Increase in payables		3,754		438
(Increase) in inventories		(464)		-
Net cash outflow from operating activities		(17,121)		(2,145)
Cash flows from investing activities
Payments to acquire tangible assets		(200)		-
Payments to acquire intangible assets		(6,791)		(3,317)
Net cash outflow from investing activities		(6,991)		(3,317)
Cash flows from financing activities
Proceeds on issuing of ordinary shares		30,461		9,734
Cost of issue of ordinary shares		(2,438)		(720)
Convertible loans		-		36
Net cash inflow from financing activities		28,023		9,050
Net  increase in cash and cash equivalents		3,911		3,588
Cash and cash equivalents at beginning of year		3,743		155
Cash and cash equivalents at end of year		7,654		3,743

Company Statement of Cash Flows for the year ended 31 December 2012

		2012		2011
		$000's		$000's
Cash outflow from operating activities
Operating loss		(18,709)		(2,611)
Provision against amounts due from subsidiary		14,279		-
Share-settled transactions		110		113
Depreciation		14		-
(Increase) in receivables		(246)		(82)
Increase in payables		857		159
Net cash outflow from operating activities		(3,695)		(2,421)
Cash flows from investing activities
Payments to acquire tangible assets		(57)		-
Payments to acquire investments in subsidiaries		-		(26)
Advances to subsidiaries		(21,300)		(3,088)
Net cash outflow from investing activities		(21,357)		(3,114)
Cash flows from financing activities
Proceeds on issuing of ordinary shares		30,461		9,734
Cost of issue of ordinary shares		(2,438)		(720)
Convertible loans		-		36
Net cash inflow from financing activities		28,023		9,050
Net increase in cash and cash equivalents		2,971		3,515
Cash and cash equivalents at beginning of year		3,670		155
Cash and cash equivalents at end of year		6,641		3,670

Group  Statement of Changes in Equity for the year ended 31 December 2012

	Share	Share	Share-based payments	Equity element of convertible	Retained
	capital	premium	reserve	loan	Losses	Total
	$000's	$000's	$000's	$000's	$000's	$000's
Balance at 1 January 2011	87	146	-	310	(517)	26

Total comprehensive loss for the year	-	-	-	-	(2,614)	(2,614)
Transactions with owners recognised directly in equity
Share issue	-	10,838	-	(310)	-	10,528
Cost of share issue		(720)	-	-	-	(720)
Share reorganization	(87)	87	-	-	-	-
Balance at 31 December 2011	-	10,351	-	-	(3,131)	7,220

Balance at 1 January 2012	-	10,351	-	-	(3,131)	7,220
Total comprehensive loss for the year	-	-	-	-	(18,692)	(18,692)

Transactions with owners recognised directly in equity
Share issue	-	30,461	-	-	-	30,461
Cost of share issue	-	(2,438)	-	-	-	(2,438)
Share-based payments	-	(660)	770	-	-	110
Balance at 31 December 2012	-	37,714	770	-	(21,823)	16,661

Company  Statement of Changes in Equity for the year ended 31 December 2012

	Share	Share	Share-based payments	Equity element of convertible	Retained
	capital	premium	reserve	loan	Losses	Total
	$000's	$000's	$000's	$000's	$000's	$000's
Balance at 1 January 2011	87	146	-	310	(517)	26

Total comprehensive loss for the year	-	-	-	-	(2,614)	(2,614)
Transactions with owners recognised directly in equity
Share issue	-	10,838	-	(310)	-	10,528
Cost of share issue		(720)	-	-	-	(720)
Share reorganization	(87)	87	-	-	-	-
Balance at 31 December 2011	-	10,351	-	-	(3,131)	7,220

Balance at 1 January 2012	-	10,351	-	-	(3,131)	7,220
Total comprehensive loss for the year	-	-	-	-	(18,709)	(18,709)

Transactions with owners recognised directly in equity
Share issue	-	30,461	-	-	-	30,461
Cost of share issue	-	(2,438)	-	-	-	(2,438)
Share-based payments	-	(660)	770	-	-	110
Balance at 31 December 2012	-	37,714	770	-	(21,840)	16,644

2.         Turnover and segmental analysis                                        

Segment information is presented in respect of the Group's management and internal reporting structure.  The Group had no revenue during the year.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Operating and Geographical segments

The Group comprises the following operating segments:

Corporate - Parent company administrative costs, general business development and AIM related costs.

Exploration & development - costs in relation to the group's direct oil and gas exploration operations.

	2012				Corporate	Exploration &	Total
	Business segments					development
					$000's	$000's	$000's
	Result
	Segment result				(4,261)	(14,431)	(18,692)
	Balance sheet
	Segment assets				7,080	13,907	20,987
	Segment liabilities				(1,150)	(3,176)	(4,326)
	Net assets				5,930	10,731	16,661
	Geographical segments			Denmark	Belize	Jersey	Total
				$000's	$000's	$000's	$000's
	Result
	Segment result			-	(14,279)	(4,413)	(18,692)
	Balance sheet
	Segment assets - Intangible			5,905	4,782	-	10,687
	- Other			956	2,264	7,080	10,300
	Segment liabilities			(132)	(3,044)	(1,150)	(4,326)
	Net assets			6,729	4,002	5,930	16,661

	2011				Corporate	Exploration &	Total
	Business segments					development
					$000's	$000's	$000's
	Result
	Segment result				(2,614)	-	(2,614)
	Loss for the year
	Balance sheet
	Segment assets				3,820	3,972	7,792
	Segment liabilities				(293)	(279)	(572)
	Net assets				3,527	3,693	7,220
	Geographical segments			Denmark	Belize	Jersey	Total
				$000's	$000's	$000's	$000's
	Result
	Segment result			-	-	(2,614)	(2,614)
	Loss for the year
	Balance sheet
	Segment assets - Intangible			502	3,394	-	3,896
	- Other			38	38	3,820	3,896
	Segment liabilities			-	(279)	(293)	(572)
	Net assets			540	3,153	3,527	7,220

8.      Loss per share	2012	2011
The calculation of loss per share is based on the loss after taxation divided by the weighted average number of shares in issue during the year:
Loss for the year ($000's)	(18,692)	(2,614)
Number of shares
Weighted average number of ordinary shares for the purposes of basic loss per share (millions)	249	80
Basic and diluted loss per share (expressed in cents)	(7.51)	(3.27)

As inclusion of the potential ordinary shares would result in a decrease in the earnings per share they are considered to be anti-dilutive, as such, a diluted earnings per share is not included.

The comparative loss per share has been recalculated to take account of the share reorganization which converted 100 "old" ordinary shares to 28 ordinary shares of no par value.

23.       Events after the end of the reporting period

On 1 February 2013 the Company announced that the Blue Creek # 2A ST well located in the productive Petén Basin in Northwest Belize was determined to have insufficient commercial quantities of moveable hydrocarbons and as a result it was decided to plug and abandon the well.  The total Dry-Well costs written off in the year to 31 December 2012 amounted to $14.4 million and a further estimated $ 1 million of costs associated with the completion of the drilling of the Blue Creek # 2A ST well will be written off in 2013.

On 28 March 2013 the Company announced a Placing to raise gross proceeds of $10 million (£6.3 million) through the issue of 315,000,000 new ordinary shares at a price of 2p per share.

On 26 April 2013 the Company announced that the Rio Bravo well located in the productive Petén Basin in Northwest Belize was determined to have insufficient commercial quantities of moveable hydrocarbons and as a result it was decided to plug and abandon the well.  The estimated costs associated with this Dry-Well to be written off in 2013 amounts to $ 5 million.

The financial information set out above comprises non-statutory accounts. The financial information for the year ended 31 December 2012 has been extracted from the accounts for the year ended 31 December 2012 on which the report of the auditors was unqualified.

**ENDS**

Enquiries:
William Kelleher	New World Oil and Gas Plc	Tel: [phone]
Georges Sztyk	New World Oil and Gas Plc	Tel: [phone]
Peter Sztyk Felicity Geidt	New World Oil and Gas Plc Beaumont Cornish Limited	Tel: [phone] Tel: [phone]
Roland Cornish	Beaumont Cornish Limited	Tel: [phone]
Jerry Keen	Shore Capital	Tel: [phone]
Pascal Keane	Shore Capital	Tel: [phone]
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: [phone]
Frank Buhagiar	St Brides Media & Finance Ltd	Tel: [phone]