About Heritage.
Heritage Oil Corporation is an independent, international oil and gas exploration, development and production company with a focus on Africa, the Middle East and Russia. . Its shares trade on London Stock Exchange (LSE), under the symbol HOIL, with a secondary listing on The Toronto Stock Exchange, (TSX).
Heritage is a versatile organisation, dedicated to creating and increasing shareholder value with a portfolio of quality oil and gas assets managed by a highly experienced team with excellent technical, commercial and financial skills. The Company has producing properties in the Sultanate of Oman and Russia, along with exploration projects in the Republic of Uganda, the Democratic Republic of Congo, the Kurdistan Region of Iraq, Mali, Malta and Pakistan. The Company's producing, development and exploration projects, together with potential opportunities, provide a combination of early cash flow and longer term value creation opportunities. In 2008, Heritage expects to drill some 10 wells in Uganda, the Kurdistan Region of Iraq and Russia.
Uganda
Kingfisher Well-site
- Heritage operates and holds 50% working interests in Blocks 1 and 3A, situated in the Albert Basin of the Western Rift Valley, which is considered the most exciting new oil and gas play in Sub-Saharan Africa in the past decade, with multi-million barrel reserve potential;
- In 2006/7, Heritage's Kingfisher-1 well in Block 3A produced an overall cumulative maximum flow rate of 13,900 bopd through a one inch choke;
- Heritage is currently drilling the Kingfisher-2 appraisal well;
- Drilling will also commence in Block 1 in the second quarter of 2008, following a further, recently completed seismic survey;
- Plans are being developed to drill the offshore (in Lake Albert) Pelican prospect in early 2009.
Democratic Republic of Congo (DRC)
- Heritage signed a Production Sharing Agreement (PSA) with the government of the DRC in July 2006 for a 39.5% interest in Blocks I and II in the prospective Albert Basin;
- The work programme will commence following receipt of a Presidential Decree;
- Blocks I and II cover more than 6,000 square kilometres and extend over the onshore and offshore acreage in the DRC part of the Albert Basin that extends into neighbouring Uganda.
Kurdistan
- In October 2007, Heritage executed a PSA with the Kurdistan Regional Government over the Miran Block in the Kurdistan Region of Iraq;
- The licence area covers some 1,015 square kilometres;
- The Miran structure is potentially very large and Management estimates that the structure could contain more than 1 billion barrels of oil;
- The Miran structure lies just 55 km from the giant Kirkuk oilfield with remaining reserves thought to be in excess of 10 billion barrels, and 30 km from the Taq Taq Field on which recent wells have tested 44 - 50° API oil at flow rates in excess of 30,000 bopd
- Heritage recently completed acquisition of a 330 km seismic survey over the Miran structure
Russia
- Heritage Oil has a 95% interest in Zapadno Chumpasskoye, a development project in the West Siberian Basin of Russia;
- The field commenced production in May 2007 and Heritage has drilled three wells and acquired over 200 km seismic data on the licence.
Oman
- Heritage has a 10% working interest in Block 8, offshore Oman;
- The block includes Bukha, a producing gas-condensate field, and West Bukha, which has been approved for development;
- In 2006, the West Bukha-2 appraisal/development well produced a combined flow-rate of approximately 12,750 bpd light oil (approximately 42° API) and 26 MMscf/d gas;
- Development of the West Bukha Field has commenced and first production is targeted for the summer of 2008.
Malta
- Heritage signed a PSA with the Maltese Government in December 2007, for a 100% operating interest in Areas 2 and 7;
- Licences cover approximately 18,000 square kilometres offshore Malta;
- A number of prospects have been identified based on existing seismic data.
Mali
- Heritage farmed-in to Blocks 7 and 11 in the Republic of Mali, North-West Africa, in November 2007 earning a 75% working interest and has been appointed as operator.
- Licences cover a gross area of over 72,000 square kilometres;
- Previous drilling in the Gao Graben encountered oil and gas shows; indicating the presence of a working hydrocarbon system.
Tanzania
- Heritage signed documentation in April 2008 to farm-in to two exploration licences in Tanzania. The licences, known as the Kimbiji and Latham Areas, cover approximately 9,300 square kilometres and are held under one production sharing agreement ("PSA"). Under the terms of the farm-in agreement, Heritage has the right to earn a 70% working interest in the Kimbiji Area, and a 29.9% working interest in the Latham Area, by funding all seismic costs of the required work programmes on both blocks, comprising the acquisition of both 2D and 3D seismic data, and the drilling of two exploration wells within the Kimbiji Area.
- Active oil seeps, a recent gas discovery in a neighbouring block and the existence of producing gas fields indicates the presence in the basin of a working hydrocarbon system that is generating both oil and gas.
Pakistan
- In November 2007 Heritage executed a PSA with the Government of Pakistan over the Sanjawi Block (number 3068-2). Heritage has a 60% interest and has been awarded operatorship. The Sanjawi Block covers 2,258.47 square kilometres and is situated in Zone II (Baluchistan). It contains a number of large anticlinal structures which could be potential drilling targets.
- In May 2008 the Group also farmed-in to the Zamzama North Block (number 2667-8) in Zone III (Sindh), and under the farm-in terms agreed with the licensee, Hycarbex American Energy Incorporated, Heritage will acquire, subject to Government approval, a participating interest of 54% and be awarded operatorship of the block. This onshore exploration licence covers a gross area of 1229.23 square kilometres and is adjacent to and immediately to the north of the giant Zamzama gas-condensate field.