New World Confirms Termination Date For Belize Production Agreement
New World Oil and Gas PLC Tuesday said the termination date of the Blue Creek production sharing agreement with the Belize government will be October 31.
The company had previously reported that the agreement, which is in respect of its Blue Creek project in Belize, would terminate on October 12 unless an additional well was spudded before that time or unless it was extended by agreement with the Belize government.
On Tuesday, New World said that the actual termination date will be October 31.
New World added that it will be discussing options on continuing its participation in the licence during the course of this week with the Belize government.
It also confirmed that it is continuing to negotiate and discuss with potential partners participation in the drilling of a well on a drillable prospect at Blue Creek before the deadline to spud a well.
"It should be noted that there is no certainty that the Blue Creek PSA will be retained. In the event that it does lapse, then New World will cease to have any trading businesses and so will be treated as an investing company under AIM Rule 15," the company said in a statement.
Shares in New World were trading down 0.9% at 0.0694 pence Tuesday morning.
New World Oil & Gas continues negotiations with Belize Government over project
New World Oil & Gas is in continued negotiations with the Belize Government over the termination of its Blue Creek Production Sharing Agreement.
The company had previously announced the deal would come to an end by October 12 of this year unless an additional well is spudded before that time.
However additional legal advice has shown the definition of a term for the contract is a period of eight years.
It means the contract deadline which began in 2007 will come to an end on October 31st of this year instead.
New World said it will be discussing its options on continuing its participation in the licence during the course of the next week with the Belize Government.
A spokesman said there was “no certainty” the Blue Creek PSA will be retained.