Binding Framework Agreement signed for oil production in Kuwait and update on Subscription to raise US$25 million

Further to the approval of Shareholders at the Annual General Meeting on 12 September
2013, New World has continued to work with the Subscriber, Niel Petroleum SA (‘Niel’), to
complete the subscription on the agreed terms. In line with this, New World has been
informed that Dr. Muaaz KH M Alfahaid (‘Dr Alfahaid’), a Kuwaiti national representing Al
Maram Trading & Contracting LTD, will be acquiring a 20% ownership stake in Niel for a
consideration of US$20 million, and in turn Niel will be using this consideration to complete
the Subscription with New World.

With this in mind, the Company is pleased to announce that it expects the balance of the
Subscription funds to the value of US$20 million to be paid by Niel no later than 30 July
2014 and following which 2,184,897,959 Subscription Shares will be issued and allotted at a
price of 0.735p per share.

In conjunction with the above development, the Company is pleased to announce that it has
signed a binding Framework Agreement (‘FA’) with Dr Alfahaid and Niel which contains
certain agreed aspects of a proposed agreement between the parties whereby the Company
expects to participate in drilling and production in Kuwait and marketing of crude oil abroad.

In addition to the acquisition of a 20% ownership stake in Niel for US$20 million, the FA
provides for the acquisition by New World of a 49% equity interest (with 60% economic
benefit in the net revenues) of Al-Maraam Al-Ahliya Company for General Trading and
Contracting LLC (‘Al-Maram’), duly registered and established in Kuwait, one of the few
companies that has been granted the right to participate in tenders to drill for and produce oil
and gas in Kuwait, and to sell and market oil produced in Kuwait to the international market.
As part of the definitive transaction, and on completion, New World will nominate a General
Manager of Al-Maram. New World, Niel and Dr Alfahaid expect to execute all transaction
documents related to this venture shortly and to begin setting up operations in Kuwait
thereafter.

As noted above, the transaction is subject to completion including the execution of
definitive agreements, the receipt of the respective funds and compliance with
regulatory requirements.

Kuwait has announced a programme to increase current production from 2.8 million barrels
of oil (‘MMbo’) per day to 3.5 MMbo per day by the end of 2015. Al-Maram will participate
in all future bid rounds for the drilling and production of oil and gas in Kuwait.
New World CEO William Kelleher said: “The signing of this Framework Agreement with
Dr Alfahaid should set the stage for New World to become an active player in the Middle
East petroleum sector. The completion of the Niel Subscription will provide adequate
financial resources to promptly begin operations in Kuwait and participate in upcoming
projects. We feel that this development could be a ‘company-maker’ and achieve our stated
goal of becoming a successful exploration and production company.

“I would like to take this opportunity to express our gratitude and appreciation to Dr
Alfahaid, Nicolas Bourg, Laurent Foucher and the Niel Petroleum team who worked
diligently on turning an interesting idea into reality. I look forward to updating the market on
all new developments in the near future at this exciting time for New World.”

Further Information on the Framework Agreement

The Framework Agreement provides that upon the conclusion of a share purchase agreement,
a shareholders agreement and a put option agreement with Dr Alfahaid, New World shall pay
EUR1 million in consideration for an immediate transfer of 49% of the shares in Al Maram
(including a 60% interest in the net revenues). New World will pay an additional EUR4
million to Dr Alfahaid once the Subscription is complete and New World receives the US$25
million. If, however, New World does not receive the Subscription funds by the long stop
date of 30 July 2014, New World will have a "put" option that, if exercised, would compel Dr
Alfahaid to pay back the initial EUR1 million paid by New World.

** ENDS **

For further information please visit www.nwoilgas.com or contact:

Enquiries:
William Kelleher New World Oil and Gas Plc
Tel: +17134472171
Georges Sztyk New World Oil and Gas Plc
Tel: +1514 9612247
Peter Sztyk New World Oil and Gas Plc 
Tel: +19172157122  


Felicity Geidt Beaumont Cornish Limited
Tel: +44 (0) 20 7628 3396
Roland Cornish Beaumont Cornish Limited
Tel: +44 (0) 20 7628 3396 


Jerry Keen Shore Capital
Tel: +44 (0) 20 7408 4090

Hugo de Salis St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
Frank Buhagiar St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177


Notes to Editors
Dr Muaaz KH M Alfahaid - Biography
Dr. Alfahaid, is the son of Khaled Masoud, a previous minister and prominent member of the
Kuwaiti parliament. Dr Alfahaid earned a Bachelor’s degree in International Relations from
Strasbourg University in 1993; a Master degree in Translation (prompt/spontaneous
translation) in 1994, also from Strasbourg University; and a Doctorate in Social Politics from
the Sorbonne in 2001.

Dr. Alfahaid is an entrepreneur who has been engaged in forming business ventures
internationally for the past two decades. He established several businesses and held the
chairmanship and CEO positions in various companies, namely the European Arab Group
between the years 1998 and 2000, Egypt téléphérique between 2000 and 2003, Grand Lake in
2003, Uganda Telecom and Immobile Imoja, as well as Kuwait & Joba in Southern Sudan
recently.

Reflecting Dr. Alfahaid’s progressive agenda when it comes to addressing social issues, he is
also a founding member of Dialogue of Civilizations Center aimed at defending democracy
in Kuwait.

 

Please download the full document below.

Posted on: May 8th, 2014

Share: