New World Oil & Gas (LON:NEW) has told investors that the Belize government has approved a two year extension to its production sharing agreement (PSA) for the Blue Creek project.
The PSA now runs up until October 12 2015.
Over the next twelve months the company intends to carry out a thorough review of its previously captured seismic and drilling results. Then, in the second year of the renewal, New World will have the choice to either drill one new exploration well or ‘drop’ the PSA.
New World says it continues to look for a farm-in partner to share the exploration drilling costs at Blue Creek.
"We are delighted to have received the approval from the Government of Belize for the third renewal period on the Blue Creek PSA,” chief executive Bill Kelleher said in a statement.
“With an active exploration work programme in place we are stepping up our efforts to seek farm-in or joint venture partners for our highly prospective licence areas.
“We will continue to keep the market informed of our activities."