Heritage Oil provides Uganda drilling update



    /THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
    SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

    CALGARY, Aug. 6 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent
upstream exploration and production company, is pleased to provide an update
on encouraging drilling activities in Uganda.

    
    Highlights

    -   Excellent results from Tullow Oil's Kasamene-1 well in Block 2,
        substantially lowers the exploration risks in Heritage's Block 1
    -   Structural trends can be traced from Kasamene-1 well (Block 2) to
        Warthog, Giraffe and Buffalo prospects (Block 1). Drilling programme
        to commence shortly
    -   Potential for Warthog prospect to be part of the same structure as
        Kasamene
    -   Kingfisher-2 well in Block 3A to production test reservoirs in August
    

    Upcoming Heritage Drilling Activity in Block 1, Albert Basin, Uganda

    Heritage is planning an active drilling campaign in Block 1 that is
expected to commence next month on the Buffalo, Giraffe and Warthog prospects.
The excellent drilling results from the Kasamene-1 well (as announced by
Tullow Oil plc to the London Stock Exchange today and referenced below),
significantly lowers the exploration risk of these and other prospects in
Block 1.
    Kasamene-1 is located approximately 2.5 kilometres from Block 1, and
appears to have been drilled on a structural trend characterised by
encouraging seismic amplitude anomalies. This trend can be traced northwards
from the Kasamene discovery through the Warthog, Giraffe and Buffalo
prospects.
    Both the Buffalo and Giraffe prospects were independently assessed by RPS
Energy as at 30 September 2007 to have mean gross un-risked prospective
resources of 420 and 89 million barrels of oil respectively. The Warthog
prospect is located approximately 5.5 kilometres north of the Kasamene well,
with the crest and the greater part of the structure being located within
Block 1. The Warthog and Kasamene prospects may not be just related structures
on trend with one another, but could also be part of the same structure.

    Production Test of Kingfisher-2 Well, Block 3A, Albert Basin, Uganda

    This deviated appraisal well has been drilled to a total depth of
3,906 metres, (3,197 metres true vertical depth). Heritage will be testing
three zones, which based on a preliminary evaluation of wireline log data,
have an estimated net thickness of 37 metres over a gross interval of
approximately 100 metres. These three zones appear equivalent to the Upper
Miocene discoveries in the Kingfisher-1 well.
    In the deeper section the well penetrated the targeted basal sands
comprising approximately 30 metres of reservoir overlain by a good potential
shale top-seal. Although no hydrocarbons were present in the basal sands at
this location, it is considered that these could still be an important
reservoir target for other prospects within Block 3A. This potential will be
evaluated as part of the planned Lake Albert offshore drilling programme in
2009.
    Heritage expects to have completed testing of the well before the end of
this month.

    Tony Buckingham, CEO, commented:

    "The Kingfisher-2 and Kasamene-1 wells continue the very successful
drilling programmes in the Albert Basin. We believe that these successes
coupled with the near-term drilling programmes will prove up sufficient
reserves for commercial development. The remainder of the year will be a very
exciting time for Heritage as we look forward to commencing drilling in Block
1 and continued drilling in Block 3A."

    Drilling in the Butiaba Region, Block 2, Albert Basin, Uganda

    Tullow Oil, the operator of Block 2, Uganda, today issued the following
press release:

    "The Kasamene-1 exploration well, drilled in the Butiaba region of Uganda
Block 2, has encountered over 31 metres of net oil pay and at least 6 metres
of net gas pay.
    The well was drilled some 1.5km from the crest of the structure to a
total depth of 957 metres and has been successfully logged. Downhole pressure
testing and sampling has confirmed the presence of dry gas and moveable
30-33 degree API oil. Reservoir quality for both zones is excellent. The most
likely gas column is over 35 metres and the most likely oil column is over
75 metres. Further potential exists up-dip and an appraisal well will be
required to test the vertical extent of the oil legs and gas cap. The well is
currently being sidetracked and core will be taken throughout the reservoir
section for analysis.
    Kasamene-1 was drilled 15km to the north-west of the Ngege-1 discovery
and is the second successful test of the Victoria Nile delta play fairway
within the Lake Albert Rift Basin. The well results have confirmed the
presence of excellent quality thick reservoir and seal units within the centre
of the basin, and de-risks several adjacent prospects in Blocks 1 and 2 that
will be drilled as part of the current 9 well Butiaba drilling campaign.
    On completion of operations at Kasamene-1, the rig will move
10 kilometres to the East and drill the Kigogole-1 prospect starting in mid
August."
    Heritage has a 50% interest in Blocks 3A and 1 with Tullow Oil as partner
for the remaining 50%. A map of the oil wells and certain targets in Blocks 3A
and 1 is available on the website: www.heritageoilltd.com

    
    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 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.

    If you would prefer to receive press releases via email please contact
    Sasha Abrams (sasha@chfir.com) and specify "Heritage press releases"
                             in the subject line.
    

    FORWARD-LOOKING INFORMATION:

    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.

    %SEDAR: 00010129E




For further information:

For further information: PR - Europe, Bell Pottinger Corporate &
Financial, Nick Lambert, Andrew Benbow, Tel: +44 (0) 20 7861 3232, Email:
NLambert@bell-pottinger.co.uk, ABenbow@bellpottinger.co.uk; Investor Relations
- Heritage Oil Limited, Tanya Clarke, Tel: +44(0) 20 7518 0838, Email:
tc@heritageoilltd.com; Heritage Oil Limited, Tony Buckingham, Paul Atherton,
Tel: +44 (0) 1534 873 000, +44 (0) 20 7518 0820, (403) 234 9974, Email:
info@heritageoilltd.com; Investor Relations - Canada, CHF Investor Relations,
Cathy Hume, Lindsay Carpenter, Tel: (416) 868 1079 x231, x 239, Email:
cathy@chfir.com, lindsay@chfir.com

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