Heritage Oil spuds Warthog-1 exploration well and Kingfisher-3 appraisal well in Uganda


    CALGARY, Sept. 30 /CNW/ - Heritage Oil Limited, an independent upstream
exploration and production company, announces that it has commenced drilling
the Warthog-1 exploration well in Block 1, Uganda and the Kingfisher-3
appraisal well in Block 3A, Uganda.


    -   Warthog-1 is the first well to be drilled in Block 1, Uganda, and is
        part of a three well exploration programme to be drilled back to back
        before the year-end
    -   Recent discoveries by the Kasamene-1 and Kigogole-1 wells in Block 2,
        in close proximity to the Block 1 boundary, substantially lowers the
        exploration risks in Block 1
    -   Potential for the Warthog prospect to be part of the same structure
        as Kasamene
    -   Kingfisher-3 and its planned sidetrack Kingfisher-3A in Block 3A,
        Uganda, will appraise the southern extent of the Kingfisher discovery
        and gather critical reservoir data

    Drilling Activity - Block 1, Uganda

    The Warthog-1 exploration well is being drilled to an anticipated depth
of approximately 1,000 metres and is expected to take less than one month to
complete. The discovery in the Kasamene-1 well in Block 2, which encountered a
reported net oil column of 31 metres in a gross interval of 75 metres, has
significantly lowered the exploration risk of Warthog and other prospects in
Block 1. Kasamene-1, located approximately 2.5 kilometres from the Block 1
border and approximately 5 kilometres southwest of the Warthog-1 well, appears
to have been drilled on the same structural trend as Warthog. This trend also
contains encouraging seismic amplitude anomalies at reservoir level and can be
traced northeast from the Kasamene discovery through the Warthog, Giraffe and
Buffalo prospects.
    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. The Warthog
prospect was mapped after RPS Energy issued its report. Management considers
the Warthog prospect could be a similar size to the Giraffe prospect.

    Drilling Activity - Block 3A, Uganda

    Kingfisher-3, and its planned sidetrack Kingfisher-3A, are being drilled
to an anticipated depth of approximately 3,270 metres and 2,860 metres
respectively and are expected to take between four and five months to
complete. The objectives of the wells are to appraise the southern extent of
the field whilst gathering critical reservoir data. Management intends to
suspend the Kingfisher-3A well as a third future producer alongside the
previously suspended Kingfisher-1 and Kingfisher-2 wells. The Kingfisher
discovery has proved to be a great success with production tests from
Kingfisher-1 and Kingfisher-2 of 13,892 bopd and 14,364 bopd respectively. The
discovered oil is good quality, light (between 30 and 32 degrees API) and
sweet with a low gas-oil ratio and some associated wax.

    Upcoming Exploration Activity in Uganda

    Country         Block          Prospect        Interest        Spud Date

    Uganda          Block 1        Buffalo         50%             Q4 2008
    Uganda          Block 1        Giraffe         50%             Q4 2008

    Tony Buckingham, CEO, commented:

    "We have commenced our busiest and most exciting drilling programme in
Uganda since Heritage commenced operations in the Albert Basin in 1997. The
multi-well exploration program in Block 1 together with the Kingfisher-3/3A
appraisal wells in Block 3A, have the potential to achieve the commercial
threshold for the development of our reserves in Uganda, which will transform
the Company and allow us to proceed with the early development of the Albert

    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
        (TSX: HOC).

    -   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.


    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: Heritage Oil Limited, Tony Buckingham, CEO,
Paul Atherton, CFO, +44 (0) 1534 873 000, +41 91 973 1800, (403) 234-9974,
info@heritageoilltd.com; Heritage Oil Limited - Investor Relations, Tanya
Clarke, +44 (0) 20 7518 0838, tc@heritageoilltd.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, cathy@chfir.com, lindsay@chfir.com

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