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CALGARY, Sept. 3 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent
upstream exploration and production company, announces successful tests of all
three reservoir intervals in the Kingfisher-2 well in Block 3A, Uganda.
- Three reservoirs produced at a cumulative flow rate of 14,364 bopd.
Rates were constrained by surface test equipment
- Record test production from any well in Uganda
- Upgrade to Kingfisher potential oil reserves expected
- Rig to be moved to drill Kingfisher-3 in Block 3, Uganda, in
- Multi-well drilling programme to commence in Block 1, Uganda, in
Kingfisher-2, Block 3A, Uganda, Test Results
Three reservoirs with a cumulative vertical net pay of approximately
37 metres between 2,654 metres and 2,783 metres measured depth produced at a
cumulative flow rate of 14,364 bopd on test as follows:
Drill Stem Test Gross Measured Maximum Oil Quality Choke
Depth Interval Flow Rate
(DST) (metres) (bopd) (API) (inches)
1 20.2 5,178 29.7 48/64th
2 26.5 4,798 30.5 64/64th
3 12.0 4,388 32.0 48/64th
The higher rates recorded from all three test intervals were constrained
by the surface test equipment. It appears that these three zones are
equivalent to the same three intervals tested in the Kingfisher-1 well, which
flowed at a combined rate of 9,773 bopd. Pressure data recorded from the DST-1
and DST-2 intervals indicate that the two lowermost sands are possibly in
vertical communication and therefore could comprise the same reservoir. This
could potentially lead to higher oil volumes.
The oil is good quality, of light to medium gravity and sweet, with a low
gas-oil ratio and some associated wax. The reservoirs are highly permeable
sandstones, with an estimated permeability from DST-1 of 2,250 milliDarcies.
It is likely that there will be an upgrade to potential oil reserves
following drilling of the Kingfisher-2 well. Management of Heritage will look
to update their estimated volumes following full evaluation of the test data.
Prior to the drilling of Kingfisher-2, the gross contingent resources of
Kingfisher were independently evaluated by RPS Energy to have a most likely
volume of 118 million barrels.
The Nabors 221 rig will now move approximately three kilometres south of
Kingfisher-2, along the Lake Albert shoreline, to drill the Kingfisher-3
appraisal well, which will evaluate the southern portion of this field.
Block 1, Uganda, Drilling Programme
The first drilling programme in Block 1 is scheduled to commence this
month, with the drilling of the Warthog prospect. This is part of a three well
programme which also includes the Buffalo and Giraffe prospects. Exploration
risks in Block 1 have been significantly reduced due to the recent drilling
success in Block 2, very close to the Block 1 border. A structural trend,
characterised by high amplitude anomalies in the seismic data, can be traced
northwards from Tullow Oil Plc's Kasamene-1 discovery, just 2.5 kilometres
south of Block 1, through the Warthog, Giraffe and Buffalo prospects in
Tony Buckingham, Chief Executive Officer, commented:
"The cumulative flow rate of 14,364 bopd from the Kingfisher-2 well has
surpassed our expectations, indicating the outstanding potential of the
Kingfisher discovery. This is the third well in the Albert Basin to produce
over 12,000 bopd under test and the second in Block 3A. Heritage is now
embarking on its busiest and most exciting drilling schedule in Uganda, with a
total of four wells planned to be drilled in Block 3A and Block 1 during the
remainder of the year. This is an exciting time for Heritage, as we approach
the commercial threshold for the development of our reserves in Uganda which
will transform the Company."
Heritage is the Operator of Block 3A and Block 1 in Uganda with a 50%
equity interest in the licences with Tullow Oil Plc holding the remaining 50%
Notes to Editors
- Heritage is listed on the Main Market of the London Stock Exchange
and is a constituent of the FTSE 250 Index. The trading symbol is
HOIL. Heritage has a further listing on the Toronto Stock Exchange
- Heritage is an independent upstream exploration and production
company engaged in the exploration for, and the development,
production and acquisition of, oil and gas in its core areas of
Africa, the Middle East and Russia.
- Heritage has producing properties in Oman and Russia and exploration
projects in Uganda, the Kurdistan Region of Iraq, the Democratic
Republic of Congo, Malta, Pakistan, Tanzania and Mali.
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Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding production
estimates and future plans and objectives of Heritage - constitute
forward-looking information that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate;
actual results and future events could differ materially from those
anticipated in such statements. Factors that could cause actual results to
differ materially from anticipated results include risks and uncertainties
such as: risks relating to estimates of reserves and recoveries; production
and operating cost assumptions; development risks and costs; the risk of
commodity price fluctuations; political and regulatory risks; and other risks
and uncertainties as disclosed under the heading "Risk Factors" in its
Prospectus and elsewhere in Heritage documents filed from time-to-time with
the London Stock Exchange and other regulatory authorities. Further, any
forward-looking information is made only as of a certain date and the Company
undertakes no obligation to update any forward-looking information or
statements to reflect events or circumstances after the date on which such
statement is made or reflect the occurrence of unanticipated events, except as
may be required by applicable securities laws. New factors emerge from time to
time, and it is not possible for management of the Company to predict all of
these factors and to assess in advance the impact of each such factor on the
Company's business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking information.
For further information:
For further information: Heritage Oil Limited, Tony Buckingham, CEO,
Paul Atherton, CFO, +44 (0) 1534 873 000, +41 91 973 1800, (403) 234-9974,
Email: email@example.com; Heritage Oil Limited - Investor Relations,
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Corporate & Financial - PR - Europe, Nick Lambert, Andrew Benbow, +44 (0) 20
7861 3232, NLambert@bell-pottinger.co.uk, ABenbow@bell-pottinger.co.uk; CHF
Investor Relations - Investor Relations - Canada, Cathy Hume, Lindsay
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