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CALGARY, June 19 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent
upstream exploration and production company, announces an operational update
to accompany its Annual General Meeting, taking place at 3pm (BST) today at
22 Grenville Street, St. Helier, Jersey.
The Kingfisher-2 appraisal and exploration well in Block 3A, Uganda, was
spudded on 26 April. This deviated well is being drilled from the lakeshore by
the Nabors 221 rig and is targeting multiple pay zones in the Kingfisher
discovery located beneath Lake Albert. The well is currently at approximately
2,660 metres measured depth (2,195 metres true vertical depth). Hydrocarbon
shows to date are analogous to those encountered in the original discovery
well, Kingfisher-1. It is expected that the well will reach its target depth
of 4,100 metres in 40 to 60 days time.
The Kingfisher-2 well is intended to appraise reservoir zones discovered
by the Kingfisher-1 well, which was completed in 2007, as well as to explore a
deeper primary objective which was not previously reached due to limitations
of the drill rig used. The more capable Nabors 221 rig is drilling the
Kingfisher-2 well. In the Kingfisher-1 well, four intervals were tested
successfully in the secondary objective, resulting in an overall cumulative
flow rate of approximately 13,900 bopd. The Kingfisher-2 wellsite is located
approximately one kilometre northeast of the Kingfisher-1 wellsite.
Drilling in Block 1, Uganda, is expected to commence in the third quarter
of 2008. A multi-well programme will target a number of relatively shallow
structures characterised by amplitude anomalies on seismic data. A mobile rig
that is currently drilling in the Butiaba region of neighbouring Block 2 will
be used for this programme.
Heritage announced in April 2008 that it had signed documentation to
farm-in to two licences covering four exploration blocks in Tanzania, which
were subject to the approval of the Government of Tanzania. Approval has been
received for the farm-in to the Kimbiji and Latham licence and approval is
expected shortly for the Kisangire and Lukuliro licence. The four exploration
blocks cover approximately 25,000 square kilometres.
Kurdistan Region of Iraq
A 2D seismic programme of approximately 330 km that commenced in April
2008 has just been completed in the Miran Block, in the Kurdistan Region of
Iraq. Initial interpretation of the seismic shows two large structures, each
with multi-zone potential reservoir targets. A drilling programme is currently
expected to commence prior to the end of 2008.
Development of the West Bukha field is ongoing. The drilling rig
"Courageous" arrived on location in mid-April and has been contracted to
deepen the West Bukha-2 well and to drill the West Bukha-3 and West Bukha-4
wells. West Bukha-2 was drilled in 2006 and production tested 12,750 bopd and
26 MMscf/d of gas. The West Bukha-3 is being drilled and is currently at a
depth of approximately 2,670 metres. Installation of the West Bukha wellhead
platform was completed on 2 June and production is expected to commence during
the second half of 2008.
As previously announced, Heritage has recently farmed-in or been awarded
licences in a number of new territories, including Mali, Malta and Pakistan,
where operations have commenced. Heritage looks forward to updating
shareholders on progress made on these new projects later this year.
It was announced on 11 June that Heritage will join the mid cap FTSE 250
index, with effect from the start of trading on Monday, 23 June 2008.
Notes to Editors
- Heritage is listed on the Main Market of the London Stock Exchange.
The trading symbol is HOIL.
- 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: Investor Relations, PR - Europe: Bell Pottinger
Corporate & Financial, Nick Lambert, Andrew Benbow, Tel: +44 (0) 20 7861 3232,
Email: NLambert@bell-pottinger.co.uk, ABenbow@bell-pottinger.co.uk; Canada:
CHF Investor Relations, Cathy Hume, Lindsay Carpenter, (416) 868-1079 x231,
239, email@example.com, firstname.lastname@example.org; Heritage Oil Limited: Tony
Buckingham, Paul Atherton, Tel +44 (0) 1534 873 000, +41 91 973 1800, (403)
234-9974, Email email@example.com