New World Oil & Gas (LON:NEW) has revealed that a second drill ready target has been outlined by industry experts RPS Energy on the Danica Resources project in Denmark.
This project, called North Rødby, is located 75 kilometres from the producing fields – featuring Zechstein reservoirs – in Germany.
North Rødby is estimated to contain 60mln barrels of recoverable prospective oil resources in the Zechstein target, and 320bln cubic feet of gas in a Rotliegendes target.
The geological possibility of success (GPoS) for the Zechstein target is estimated at 1-in10, while it is 1-in-12 for the Rotliegendes.
According to scoping, economics value the Zechstein prospect at US$753mln and the Rotliegendes at US$485mln.
The Als prospect, the other prospect on the Danica Resources project, had previously been estimated to host 1bn barrels of oil in a Zechstein target and 1.4bln cubic feet of gas in the Rotliegendes - with GPoS estimated at 1-in-8 and 1-in-9 respectively. These estimates remain unchanged.
"Danica Resources, our second project in Denmark, now has two drill-ready prospects, each with two separate targets in the Zechstein and Rotliegendes and each with company-making potential,” said chief executive Bill Kelleher.
"In aggregate, Als and North Rødby, have indicative volumetrics totalling 444.4 MMbbls oil (unrisked sum of individual P50, discovery case), and success case economic outcomes of NPV10 US$3.67 billion net to New World.
"We have already reported net indicative volumetrics and success case economic outcomes for the Danica Jutland project totalling 591 BCF and a NPV10 of US$655.7 million.”
He adds: “Multiple leads and prospects have been defined on both our Danish projects, and as a result, we have delivered on our objective to expose our shareholders to considerable upside.
“Management is now focused on realizing the value created to date, and our on-going farm-out negotiations with potential partners are a part of this process, as we look to advance these highly prospective licences in Denmark."