/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 21 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent
upstream exploration and production company, announces a significant new
discovery with Warthog-1, the first exploration well that the Company has
drilled in Block 1, Uganda.
- The Warthog-1 discovery has a gross hydrocarbon-bearing interval of
approximately 150 metres, with 46 metres of net hydrocarbon pay
- An exciting start to the drilling campaign in Block 1 which reduces
significantly the exploration risk of the next two exploration wells
in Block 1
- The rig will now move to the drilling location for Buffalo-1
- Drilling operations at Buffalo-1 will commence mid-November
- Kingfisher-3 is currently drilling ahead at approximately
Warthog Discovery - Block 1, Uganda
Drilling operations on Warthog-1 commenced on 27 September 2008 and the
well was drilled to a total depth of 911 metres. The well encountered a gross
hydrocarbon-bearing interval of approximately 150 metres in thickness, with
net hydrocarbon pay of 46 metres. Wireline logging and formation pressure
measurements indicate 31 metres of net oil pay in the principal oil-bearing
reservoir section, overlain by 15 metres of additional net hydrocarbon pay
comprising, most probably, volatile oil, condensate and wet gas.
In addition to the oil discovered in the principal oil-bearing reservoir
section, there is further potential upside for liquid hydrocarbons in the
overlying reservoir section and elevates further upside potential from the
adjacent Warthog North prospect.
Warthog-1 is the first well in a three well exploration programme to be
drilled in Block 1. It lies on a structural trend that can be traced from the
Kasamene-1 discovery well, in neighbouring Block 2, continuing northeast
through the Giraffe and Buffalo prospects in Block 1. All these structures are
characterised by seismic amplitude anomalies at reservoir level that appear to
directly indicate the presence of hydrocarbons. The successful results of the
Warthog-1 discovery further emphasises the highly prospective nature of the
Buffalo and Giraffe prospects.
There are a further 15 similarly encouraging amplitude anomalies mapped
within Block 1 from over 600 kilometres of seismic data acquired in the
licence during the past 18 months, and all represent additional prospects and
leads which constitute additional multiple drilling targets.
The Warthog-1 well is being suspended as a potential future production
well. The rig will move to drill Buffalo-1 to an anticipated depth of
approximately 600 metres and is expected to commence drilling in mid-November.
The movement of the rig is expected to take up to 21 days.
Both the Buffalo and Giraffe prospects were assessed independently 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.
Drilling Activity Update - Block 3A, Uganda
Kingfisher-3, which was spudded on 26 September, is currently drilling
ahead at 1,957 metres. It is planned to drill Kingfisher-3, and its sidetrack
Kingfisher-3A, to anticipated depths of approximately 3,270 metres and
2,860 metres respectively. These wells are expected to be completed in
February 2009. The wells are being drilled to evaluate the southern limits of
the field and to gather additional reservoir data in preparation for field
Upcoming Exploration Activity in Uganda
Block Prospect Interest Spud Date
Block 1 Buffalo 50% Q4 2008
Block 1 Giraffe 50% Q4 2008
Tony Buckingham, CEO, commented:
"Warthog is a significant discovery and maintains the 100% exploration
success rate in the Albert Basin, Uganda, during the last three years. This
discovery highlights the potential in Block 1 as we continue our high impact
multi-well exploration programme. The programme in Block 1 together with the
Kingfisher-3/3A appraisal wells in Block 3A, have the potential to transform
the Company, by achieving the commerciality threshold and allowing us to
proceed with the early development of the Albert Basin."
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.
If you would prefer to receive press releases via email
please contact Sasha Abrams (email@example.com) and specify
"Heritage press releases" in the subject line.
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,
firstname.lastname@example.org; Heritage Oil Limited - Investor Relations, Tanya
Clarke, +44 (0) 20 7518 0838, email@example.com; Bell Pottinger 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 Carpenter, (416)
868-1079 x231, x239, firstname.lastname@example.org, email@example.com