Belize set for new oil rig

Drilling is set to commence shortly on a new oil rig located off the coast of Belize, it has been confirmed.

New World Oil and Gas announced that the B Crest project in the Petén Basin, north-west of the country, will complement ThermaSource drill rig, which recently launched in the country.

Crest B represents the first of three drill-ready prospects that New World Oil and Gas has identified since acquiring an interest in the Petén Basin acreage in 2011, noted chief executive Bill Kelleher.

"New World is entering a tremendously exciting period that will see, in just a matter of weeks, the commencement of drilling operations at Blue Creek in Belize, our most advanced project," he added.

"Having reduced the geologic risk of our Belizean prospects by 60 per cent through a multi stage seismic programme we will be in a position to judge whether we have made an oil discovery by mid to late November 2012," Mr Kelleher explained.

"This is a hugely significant milestone for the company and we are delighted to have reached it ahead of schedule and at a 53 per cent reduced cost following our amendment to our farm-out agreement and our farm-down to our drilling contractor."

The new rig is smaller than the other two, as it has an estimated 92 million barrels of prospective oil resources, compared with West Gallon Jug Crest's 113 million and A Crest's 124 million.

New World is expected to commence drilling on B Crest and the West Gallon Jug by the end of 2012, while drilling on the well on the A Crest project is expected to begin in the first half of 2013.

Mr Kelleher also issued a statement to investors, noting that the company is aiming to maintain its de-risking of the prospects identified in its two Danish licences, while he estimates drilling will also take place there next year.

According to the chief executive, the remainder of 2012 will see the company have a "highly active news cycle".