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CALGARY, ALBERTA--(Marketwire - May 6, 2009) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Heritage Oil Limited (TSX:HOC)(LSE:HOIL), an
independent upstream exploration and production company, announces a
major oil discovery in the Kurdistan Region of Iraq and the completion
of an initial test programme on the Miran
West-1 well. The results are summarised below:
- Miran West structure estimated oil-in-place
of between 2.3 to 4.2 billion barrels
- Recovery factor expected to be between 50% to 70% due to the highly
fractured nature of the reservoirs
- From the pressure data recorded during testing management estimates
flow rates of between 10,000 to 15,000 bopd
per well
- Miran West-1 well has an estimated gross
oil-bearing interval of 710 metres
- Oil produced during testing was medium gravity (approximately 27
degree API),with low sulphur, a low gas-oil ratio and with no water
- Miran West field development will be low cost
and straightforward to fast-track
- Potential for trucking production for sale by year-end 2009
- Success of Miran West-1 has significantly
lowered the exploration risk of the adjacent, similarly sized, Miran East structure
It was announced on 25 March 2009 that the Miran
West-1 well had reached target depth. Several drill stem tests (DSTs) were run over a gross interval of 500 metres,
covering the three major producing reservoirs in the region: the Shiranish, Kometan and Qamchuqua formations.
As this was the first exploration well ever drilled on the licence,
drilling procedures took account of the high reservoir pressures that
characterise the region, but which were not encountered in the well. Testing
was severely constrained by the limitations of the downhole
and surface testing equipment and the loss of over 100,000 barrels of
drilling fluid and lost circulation material due to the highly
fractured nature of the reservoirs.
Additional testing equipment is being sourced to undertake a second phase
of longer term testing. This equipment is expected to arrive within six
to eight weeks and the drilling rig will remain on site during this
period. Following the upcoming testing programme the well is scheduled
to be suspended as a future producer with the potential to truck crude
oil production by year-end 2009.
The information gained from the drilling of this well will be
invaluable for the drilling of subsequent appraisal wells, which can
now be planned in such a way as to optimise future wells for testing
and completion. Further drilling on the licence is scheduled for later
this year.
Commenting on the results, Dr. Ashti Hawrami, the Minister of Natural Resources of the
Kurdistan Regional Government, said:
"This is excellent news and we look forward to the Miran field exporting oil later this year. This
will mean that the Miran field in the
Kurdistan Region of Iraq will make a further contribution to Iraq's oil revenue to be shared by all
peoples of Iraq."
Tony Buckingham, Chief Executive Officer, commented:
"This is another significant development milestone for Heritage. The
presence of oil in such a large structure with a multi-billion barrel
reserves potential illustrates the significance of this discovery. There
is also further upside potential with the neighbouring Miran East structure, which together with Miran West has an area of approximately 330 square
kilometres. The Miran field has the potential
to deliver significant value as it will be a major source of reserve
and production growth for Heritage."
Heritage Energy Middle East, a wholly-owned subsidiary of Heritage, is
operator and holds a 75% interest in the Miran
Licence, with Genel Energy International
Limited holding 25%. The Miran Licence
contains two large structures, Miran West and
Miran East, which have been mapped from the 332 kilometres
of excellent quality seismic data acquired by Heritage between April
and June 2008.
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 Uganda,
the Kurdistan Region of Iraq, the Democratic Republic of Congo, Malta, Pakistan,
Tanzania and Mali.
- For further information please refer to our website at www.heritageoilltd.com.
If you would prefer to receive press releases via email please contact
Lindsay Carpenter (lindsay@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.
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