New World Oil and Gas (LON:NEW) this morning unveiled an updated competent persons report which has confirmed the world class potential of the Blue Creek project in Belize.
The project, which is located within the productive Petén Basin, is now believed to contain an estimated 294 million barrels of recoverable resources (P50).
This resource would have an expected monetary value (EMV) of US$1.53 billion, the company said.
The new CPR indentified two drillable prospects which are estimated to have a 1 in 5 chance of geological success.
"It is clear from this CPR that the hydrocarbon potential in Blue Creek is world class,” said chief executive Bill Kelleher.
“Our multi-phase seismic programme has served us well, systematically raising the Probability of Geologic success to 1 in 5 while maximising our exposure to tremendous upside.
“Our focus remains unaltered and on schedule with the continuation of the third phase of our seismic programme to complete seismic coverage of the remainder of the blocks.”
Kelleher explains that New World will share information about the Belize asset with potential farm-in partners, via a virtual data room. This is in response to multiple requests from interested parties, he added.
He says the company will shortly begin reviewing possible farm-down opportunities in an effort to minimise dilution, further defray risk, and optimise its future funding strategy.
The CPR was completed by RPS Energy and it was based on the findings of the Phase 2 seismic programme. It identified two drillable prospects.
Prospect A is estimated to contain between 83-400 million barrels of oil (P90-P10) and it would be worth an estimated US$1.09 billion (EMV). While Prospect B Crest is estimated to contain 38-183 million barrels and it would be worth US$440 million (EMV).
Other potential prospects were also identified in the CPR.
Next New World plans to start the Phase Three seismic programme in January and it will be completed in the first quarter of next year. This work will complete the seismic coverage on the remainder of the firms Belize blocks.