Heritage Oil releases second quarter 2007 results and operational update


    CALGARY, Aug. 10 /CNW/ - Heritage Oil Corporation (TSX: HOC) today
announced its financial and operating results for the three and six-month
periods ended June 30, 2007. Heritage's consolidated financial statements and
Management's Discussion and Analysis for three and six-month periods ended
June 30, 2007 have been filed and are available on SEDAR at www.sedar.com and
can also be viewed on the Company's website at www.heritageoilcorp.com. All
figures are in US Dollars unless otherwise noted.

    Corporate Highlights

    During the first six months of 2007, Heritage continued to make
significant operational advances in all core areas. With a strong cash
position of $80.3 million at June 30, 2007, including $20.2 million of
restricted cash, which is held in escrow to finance the first three
semi-annual interest payments on the 2007 bonds, Heritage is well positioned
to finance remaining 2007 programs which include drilling in Western Siberia,
development of the West Bukha field in Oman, seismic programs and further
drilling in Uganda, commencement of exploration in the Democratic Republic of
Congo (DRC) and formalising a Production Sharing Agreement (PSA) in the
Kurdistan Region of Iraq.

    Heritage's operating and financial highlights for the three and six-month
periods ended June 30, 2007 include the following:

    -   In Uganda, the Kingfisher-1 well tested 13,900 barrels of oil during
        the first quarter of 2007 from two shallower zones above the primary
        deeper target that was not reached. A more powerful rig, the
        Nabors 221, is currently being mobilised to Uganda and is expected to
        commence drilling of a second Kingfisher well towards the end of
        2007. This rig has the capability to reach the primary target horizon
        on the Kingfisher structure. A 3D seismic program over the Kingfisher
        and Pelican structures in Block 3A was completed in July 2007.
        Interpretation of the data has commenced and this supports the
        original interpretation of the Kingfisher and Pelican structures,
        indicating the Kingfisher structure has an area of over 100 square
        kilometres. A 550 km 2D seismic survey commenced on Block 1 in May
        and is expected to be completed in October. Oil is known to have
        migrated to Block 1 as evidenced by the oil seep at Paraa, which is
        located on this block. Heritage is currently shooting certain in-fill
        seismic in the south eastern portion over very attractive leads which
        should provide a number of drilling locations. Interpretation of the
        first tranche of 172 km of seismic has been so encouraging that
        Heritage is now looking to accelerate drilling on Block 1 in 2008.

    -   In the Zapadno Chumpasskoye field, Russia (Heritage operator,
        95% interest) crude oil production commenced on May 17, 2007, from
        well No.226. A total of 24,700 barrels of oil were produced in the
        period to July 31, 2007. Well No.226 tested 540 barrels of oil per
        day (bopd), but the current production rate is averaging 350 bopd as
        different operational practices are examined to ensure future field
        production is conducted in the optimum manner. The oil from Zapadno
        Chumpasskoye is light, 39 degree API, with a low water cut of about

    -   During the second quarter, Heritage successfully drilled appraisal
        well P#3 in the Zapadno Chumpasskoye field, a deviated
        well, to a depth of approximately 3,479 metres (2,764 metres true
        vertical depth). The well was cased in July and is awaiting
        completion and testing. A work-over rig will be used to test well
        P#3 in late August with a view to completing it as an oil
        producer in September. Heritage commenced drilling appraisal well
        P#2 in July 2007, and is currently at a depth of
        1,146 metres. This well is expected to complete in
        late September / early October, following which a third appraisal
        well, P#4, will be drilled.

    -   Progress continues in the Kurdistan Region of Iraq. Heritage
        submitted an application for a PSA to the Minister of Natural
        Resources of the Kurdistan Regional Government in the first quarter
        of 2007. The Kurdish Regional Parliament approved a new hydrocarbon
        law on August 6, 2007. This law will be passed to the Kurdish
        Regional Government's Prime Minister for signature and thereafter, it
        is expected that the Kurdistan Regional Government will commence
        finalisation of pending PSA applications. Management considers
        Heritage is well placed to be awarded an exploration license later
        this year.

    -   Heritage signed a PSA in the DRC in the summer of 2006 for a 39.5%,
        non-operated interest in Blocks I and II covering over 6,000 square
        kilometres of onshore and offshore acreage in the DRC part of the
        Albert Basin. An exploration program in the DRC should commence with
        the acquisition of seismic, following a Presidential Decree ratifying
        the PSA, expected this year. The DRC seismic program will cover the
        western portion of Lake Albert.

    -   The development of the West Bukha field in Block 8, Oman (Heritage
        10% interest) continues to advance. Field development is on-going
        with production from the West Bukha field slated to commence in the
        first half of 2008.

    Heritage is an international oil and gas corporation with a diversified
portfolio of properties, including a producing property in the Sultanate of
Oman, a development property in Russia and exploration projects in the
Republic of Uganda and the Democratic Republic of Congo. The Company is also
pursuing opportunities in the Kurdistan region of Iraq and in other areas of
    The Company's Common Shares trade on the Toronto Stock Exchange under the
symbol HOC.

       If you would prefer to receive press releases via email contact
                 Kelly Cody (kelly@chfir.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 - are forward-looking
statements 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 AIF and
elsewhere in Heritage documents filed from time-to-time with the Toronto Stock
Exchange and other regulatory authorities. Further, any forward-looking
statement is made only as of a certain date and the Company undertakes no
obligation to update any forward-looking statement 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

    %SEDAR: 00010129E

For further information:

For further information: Investors Relations Contacts: CHF Investor
Relations: Cathy Hume, Tel (416) 868-1079 x231, Email cathy@chfir.com; Kelly
Cody, Tel (416) 868-1079 x223, Email kelly@chfir.com; Heritage Oil
Corporation: Contact Details: Tony Buckingham, Paul Atherton, Tel
+41-91-973-1800, +44-870-011-5555, (403) 234-9974, Email

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890