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CALGARY, ALBERTA--(Marketwire - Nov. 18, 2010) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Heritage Oil Plc (TSX:HOC)(LSE:HOIL) ("Heritage" or the
"Company"), an independent upstream exploration and
production company, issues its Interim Management Statement for the
period from 1 July 2010 to 17 November 2010, in accordance with
reporting requirements of the EU Transparency Directive.
Highlights
-- The Miran West-2 well, in the Kurdistan Region of Iraq, has reached a total depth of 4,426 metres -- The well has encountered indications of hydrocarbons from intervals within the Cretaceous, Jurassic and Triassic in excess of 2,500 metres -- Numerous zones for testing have been identified and testing operations have commenced -- Production in Russia averaged 516 bopd for the third quarter of 2010 -- As at 30 September 2010, Heritage's cash position was $614 million, excluding reserved amounts related to the tax dispute in Uganda
EXPLORATION ASSETS
Kurdistan Region of Iraq
The Miran West-2 well has reached a total
depth of 4,426 metres. The well encountered
indications of hydrocarbons from intervals within the Cretaceous,
Jurassic and Triassic in excess of 2,500 metres.
A number of zones within these intervals have been identified for
testing in both the deeper exploration targets and the initial
appraisal objective in the Cretaceous. Testing operations have
commenced and a further update will be provided on completion of these
tests, expected within the next couple of months.
The acquisition of approximately 550 square kilometres
of 3D seismic over the Miran Block has
recently commenced. This, along with an extensive fieldwork study that
began in October 2010, will help establish future drilling locations to
exploit the reservoirs' fracture networks.
Heritage is looking to contract at least one rig to continue the drilling
programme across the Block in 2011 which will
include an exploration well on the Miran East
structure. Heritage has operated in Kurdistan for approximately 700
days without any lost time or environmental incidents.
Other Assets
Work programmes are progressing across the
remainder of Heritage's exploration portfolio assets. Acquisition of
300 square kilometres of 3D seismic is due to
begin shortly on the offshore Latham Block in Tanzania and acquisition
of approximately 800 kilometres of 2D seismic
is scheduled to commence in Block 11 in Mali during December.
Acquisition and processing of this data will help to establish
locations for drilling in the second half of 2011. In addition,
Heritage is planning the acquisition of 1,000 kilometres
of seismic in Malta for early 2011. Drilling will commence on the Zamzama North Block, Pakistan, when the flood
waters subside which is anticipated to be during the first half of
2011.
PRODUCING ASSET
Russia
Production for the third quarter of 2010 averaged 516 bopd, an increase of approximately 22% compared to
the third quarter of 2009. Further well optimisation
work is planned for late this year and work is progressing on
preparations for further development drilling. The drilling of a
horizontal well is planned to commence during the first quarter of 2011
to test the viability of horizontal wells for field development.
CORPORATE
As at 30 September 2010, Heritage had a cash position of $614 million,
excluding reserved amounts relating to the tax dispute in Uganda.
Following completion of the sale of the Ugandan working interests on 26
July 2010, Heritage deposited $121.5 million with the Uganda Revenue
Authority and placed $283.5 million in escrow.
Heritage's strong balance sheet will facilitate acceleration of
exploration, appraisal and development programmes
in its asset portfolio and will support the ongoing initiative to seek
attractive terms for participation in other opportunities to generate
further value for shareholders. Heritage therefore continues to
actively appraise opportunities to enhance its asset portfolio.
Tony Buckingham, Chief Executive Officer, commented:
"We are encouraged by our progress in Kurdistan where we have
encountered hydrocarbon shows in the initial Cretaceous objectives and
in the deeper exploration targets in the Miran
West-2 well. As a consequence, we have commenced extensive testing of
target formations and expedited a large 3D seismic programme
across the Block. We look forward to completing our Miran
testing programme."
Notes to Editors
-- Heritage is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 Index. The trading symbol is HOIL. Heritage has a further listing on the Toronto Stock Exchange (TSX:HOC). -- Heritage is an independent upstream exploration and production company engaged in the exploration for, and the development, production and acquisition of, oil and gas in its core areas of Africa, the Middle East and Russia. -- Heritage has a producing property in Russia and exploration projects in the Kurdistan Region of Iraq, the Democratic Republic of Congo, Malta, Pakistan, Tanzania and Mali. -- All dollars are US$ unless otherwise stated. -- For further information please refer to our website, www.heritageoilplc.com
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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.
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