New World Oil and Gas begins drilling at Rio Bravo well in north-west Belize

New World Oil and Gas has announced it has commenced drilling on Rio Bravo #1 well at the Blue Creek project in north-west Belize.

The well is targeting the West Gallon Jug Crest prospect, which is expected to contain P50 un-risked prospective resource of 113 million barrels of oil with a net present value (NPV10) of $2.6bn, according to an estimate by RPS Energy.

The company will use ThermaSource International’s rig #104 to drill the well to a total depth (TD) of 8,800ft and to target the Upper Jurassic Margaret Creek formation.

The company is expected to release the drilling results by 1 May 2013, upon reaching the total depth, .

According to the drilling results of B Crest prospect, an active hydrocarbon system has been found to be present at the Blue Creek and West Gallon Jug acreage, particularly at the Blue Creek 2 and 2A ST wells.

The West Gallon Jug Crest prospect is situated about 35km south-south-west from the B Crest prospect, which is a four-way structural closure.

New World Oil and Gas CEO William Kelleher said the first two wells in north-west Belize have confirmed the presence of several main elements that make up a working hydrocarbon system, such as source, migration and seal.

"An essential element, trap, was likely breeched at B Crest as a result of a leaking fault, possibly caused by late tectonic activity," Kelleher added.

"Unlike B Crest however, West Gallon Jug is a structural high, and is not fault dependent in order for a trap to exist and contain oil.

"On the completion of this third well, we will have earned into 100% working interest in our Blue Creek project. RPS Energy has assigned an unrisked P50 resource of 113 million barrels of oil for West Gallon Jug which equates to a NPV10 of $2.6bn on a 100% working interest basis."

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Image: New World Oil and Gas has commenced drilling at the Rio Bravo 1 well in Blue Creek Project. Photo: Courtesy of Chrish9309.