Heritage Oil Plc

Heritage Oil Plc

August 17, 2009 02:00 ET

Heritage Oil Announces the Completion of Testing the Miran West-1 Discovery in the Kurdistan Region of Iraq

CALGARY, ALBERTA--(Marketwire - Aug. 17, 2009) -


Heritage Oil Plc (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces the completion of testing the Miran West-1 discovery in the Kurdistan Region of Iraq.


- Testing has been completed and a flow rate of 3,640 bopd was recorded from a single reservoir interval

- The test flow rate was restricted by surface equipment capacity, with an estimated productive potential of between 8,000 and 10,000 bopd achievable when this well is placed on production

- Attempts were made to test deeper intervals but the formations were too badly damaged by the initial drilling operations

- The Miran West-1 well has been suspended as a future producer

- The Miran West-2 appraisal well is scheduled to commence drilling in the fourth quarter. This well is expected to intersect the same reservoir intervals as were encountered in the Miran West-1 well

The second phase of testing the Miran West-1 discovery has been completed and the well is being suspended as a future producer. During this second phase of testing the well flowed at a maximum rate of 3,640 bopd from a single upper reservoir layer. The rate was restricted by surface equipment capacity and the data gathered from the test indicates that the well should produce at a rate of between 8,000 to 10,000 bopd when placed on production.

Initial Miran West-1 drilling operations were designed to cope with the potential for high reservoir pressures and this resulted in the loss of drilling fluid and lost circulation material in these highly permeable fractured reservoirs. Tests on two other deeper reservoir intervals in the well were unsuccessful because of damage and contamination sustained during drilling. Consequently, the remedial measures undertaken during re-testing operations were no more effective than during the initial testing phase.

The Miran West-1 tests did confirm both the high potential well productivity and the presence of an extensive fracture network.

The rig will now move approximately 4 km north east to commence drilling the Miran West-2 appraisal well in the fourth quarter. The knowledge and experience gained from the first well will allow the Miran West-2 well to be drilled to optimally production test all reservoir intervals.

Tony Buckingham, Chief Executive Officer, commented:

"We are very encouraged by this result in a well where the lower formations were badly damaged through drilling. Miran West-1 was the first wildcat exploration well ever drilled on this licence covering two structures which together total approximately 320 square kilometres. The well had to be drilled in accordance with good oilfield practice in a region characterised by high pressure and hydrogen sulphide. We have gathered important information which will be invaluable in advancing our forward programmes on this significant discovery beginning with the Miran West-2 appraisal well."

Heritage Energy Middle East, a wholly-owned subsidiary of Heritage, is operator and holds a 75% interest in the Miran Block, with Genel Energy International Limited holding 25%. The Miran Block 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, www.heritageoilplc.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.


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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