New World Oil and Gas said a latest assessment of its Danica Jutland Project in the Jutland onshore area in south western Denmark has surpassed expectations.
The updated competent person's report (CPR) was prepared by RPS Energy after the completion of phase one of a 2-D seismic acquisition programme on the 1/09 and 2/09 licences, spanning 4,107km2.
The report points to P50 reserves of 147 million barrels of oil equivalent with a net value of $1.3 billion to New World, taking into account three of ten identified prospect.
New World chief executive officer William Kelleher said the update marks another significant milestone for the company, and underpins the confidence it has in its first Danish project.
"We intend to acquire 55 line kilometres of additional 2-D seismic this summer and will conduct further AVO work in an effort to reduce the GPoS in the Triassic to a one in five, or better, and elevate the status of these two prospects to 'drillable' with a view to drilling sooner rather later," he added.
Probability of geologic success for Zechstein prospect has been upgraded to 1 in 12 from 1 in 16 from the previous CPR, and to 1 in 8 from 1 in 12 for the Triassic prospects.
New World has now applied for the assignment of the first 12.5% working interest in the project with the completion of phase one of the seismic survey.
Phase two seismic on the project will begin in August 2012 and slated to be completed by the end of the first quarter of 2013.
The company has an option to earn an 80% interest in the project for drilling two wells.