Investment in New World Oil and Gas plc
Paternoster is pleased to announce that it has acquired 366,618,383 shares in New World Oil and Gas plc at a price of 0.07 pence per share, for an aggregate consideration of £256,688. This represents a shareholding in the company of 8.0%.
New World's principal assets comprise the Blue Creek Project in Belize and around US$4.5 million (£2.9 million) of cash as at 28 August 2015, as a result of the placing and open offer that concluded in July 2015. The current market capitalisation of the company is £2.8 million.
The Blue Creek Project is located onshore in Northwest Belize in the North of the relatively underexplored North Petén Basin. The Blue Creek Production Sharing Agreement ("PSA"), covers two non-contiguous license areas, known as the Main Blue Creek area and the West Gallon Jug area. NWOG Belize, a wholly owned subsidiary of the company, has a 100 per cent. participating interest in the Blue Creek PSA subject to BCE (the previous holder of a majority interest in the Blue Creek PSA) maintaining a 5 per cent. royalty override. The company is seeking a farm-in partner ahead of the PSA termination date of 12 October 2015.
The company reported a loss for the six months ended 30 June 2015 of US$1,403,000.
Nicholas Lee, Chairman said
"This investment provides Paternoster with a significant interest in a listed company with a substantial cash balance at an attractive valuation at a time when market conditions are such that it is proving difficult to raise new funds for oil and gas projects. We look forward to realizing significant value for shareholders from this investment."