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CALGARY, Sept. 15 /CNW/ - Heritage Oil Limited (LSE: HOIL), an
independent upstream exploration and production company, announces the
approval by the Government of Tanzania of farm-ins to four exploration
licences in Tanzania and the transfer of operatorship to Heritage.
- Farm-in to the Kisangire and Lukuliro licences, which are held under
one production sharing agreement ("PSA"), has been approved by the
Government of Tanzania. Heritage appointed operator of these licences
- Farm-in to the Kimbiji and Latham licences, also held under one PSA,
was approved by the Government of Tanzania earlier this summer.
Heritage is the operator of the work programme
- The four licence areas are located in Eastern Tanzania and have a
total area of approximately 25,000 square kilometres
- Seismic acquisition commenced this month, initially in the onshore
part of the Kimbiji licence area
- First well planned during the second half of 2009
Heritage previously announced the farm-ins to the Kimbiji and Latham
licences on 11 April 2008 and the Kisangire and Lukuliro licences on 21 April
Heritage has commenced acquisition of 2D seismic, initially in the
onshore part of the Kimbiji licence area, after which seismic operations will
be conducted in the Kisangire licence area. Heritage plans to drill its first
well in Tanzania in the second half of 2009.
Kisangire and Lukuliro Licence Areas
The Kisangire and Lukuliro licence areas cover an area of 7,280 square
kilometres and 8,828 square kilometres respectively, onshore Tanzania. The PSA
was originally awarded to Dominion Petroleum Limited ("Dominion") in May 2005
with an exploration period of four years followed by one extension of four
years, a further extension of three years and the right to a development
licence with a term of 25 years.
Under the terms of the farm-in agreement with Dominion, Heritage
initially has the right to earn a working interest of 55% in the Kisangire and
Lukuliro licences. In order to earn the working interests, Heritage will fund
all costs to acquire a minimum of 150 kilometres of 2D seismic data and drill
the first commitment well. Heritage also has an option to earn an additional
15% working interest, thereby increasing its participating interest to 70%, by
funding 87.5% of the costs of a second well.
Latham and Kimbiji Licence Areas
The Latham and Kimbiji licences, covering 5,056 square kilometres and
4,298 square kilometres respectively, encompass onshore (1,881 square
kilometres), near shore (2,981 square kilometres), and deep water (4,491
square kilometres) areas. The PSA was awarded by way of a competitive tender
process to Petrodel Resources Ltd ("Petrodel") by the Tanzanian Government in
September 2006, having an exploration period of four years, followed by
extensions of four years and three years respectively, with the right to a
development licence with a term of 25 years.
Under the terms of the farm-in agreement with Petrodel, Heritage has the
right to earn a 70% working interest in the Kimbiji licence area, and a 29.9%
working interest in the Latham licence area in return for funding all seismic
costs required for the initial exploration period on both licences and the
drilling of two exploration wells within the Kimbiji licence area. Heritage
will act initially as contract operator, being responsible for all technical
and operational aspects of the work programmes and will be appointed operator
upon drilling the second exploration well in the Kimbiji licence.
The Kimbiji and Kisangire licence areas are close to the Mkuranga-1 gas
discovery, which was drilled in 2007 and reportedly flowed gas at a rate of 20
mmcf/d. The large Songo Songo producing gas field is located approximately 60
kilometres to the south east of the Kimbiji licence area.
Historic seismic data, combined with encouraging hydrocarbon shows in
wells drilled in the region and oil seeps at Wingayongo in the Kisangire
licence area, indicate the presence of a working hydrocarbon system that is
generating both oil and gas.
Tony Buckingham, Chief Executive Officer, commented:
"We are very pleased to have received Government approval and completed
the farm-in agreements in Tanzania. These prospective licences form part of
the Company's strategy of exploring new regions with considerable hydrocarbon
potential. Heritage's activity in Tanzania has already commenced with the
acquisition of seismic, which will be followed by a drilling programme next
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
- A location map of the Kisangire, Lukuliro, Kimbiji and Latham licence
areas is available on Heritage's website at www.heritageoilltd.com.
- 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,
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