UPDATE: New World Belize drilling "making steady progress"
New World Oil & Gas (LON:NEW) said the side-track of its keenly anticipated Belize well is making "steady progress".
On Monday the drill-bit had reached a depth of 10,195 feet and is bearing down on the targeted 11,880 feet as it prepares to test the Hillbank and Y3, two oil bearing formations.
The company deviated the original Blue Creek 2 well to locate what it believes is a "potentially significant trap".
New World said drilling had been deliberately controlled to maintain a gauge wellbore diameter that will maximise log quality.
City broker Shore Capital declared itself "very happy" with the headway being made.
"We continue to believe that this is an extremely exciting time for New World, and were delighted to see the initial results from Blue Creek 2," said analyst Craig Howie.
"New World intends to flow test this well following drilling of the deviated section although, in the meantime, we believe that the B Crest prospect has already been substantially derisked by earlier results, which indicate a much increased likelihood of discovering a significant oil accumulation."
In Denmark, where New World holds two onshore licences that comprise the Danica Jutland Project, the company continues to make progress.
It is over half-way through completing a 75km 3D seismic survey in the Jensen Prospect on Licence 1/09, while it is in the final stages of interpreting 2D seismic shot on Licence 1/08.
Kelleher said: "This is an exciting time for New World on a number of fronts.
"Not only will we soon find out if the first of a fully funded multi-well, drilling campaign in Belize has made a commercial hydrocarbon discovery, but we will also have the results of our latest seismic work on our Danish licences, as we look to continue to de-risk the multiple prospects we have already identified to drill-ready status."
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