Heritage Oil Limited
TSX : HOC
LSE : HOIL

Heritage Oil Limited

December 01, 2008 02:00 ET

Heritage Oil Spuds Buffalo-1 Exploration Well in Uganda

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2008) -

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 that it has commenced drilling the Buffalo-1 exploration well in Block 1, Uganda.

Highlights

- Buffalo-1 is the second well to be drilled in Block 1, Uganda, and is part of a three well exploration programme being drilled back to back

- Recent discovery at Warthog-1 in Block 1 has lowered the exploration risk substantially and emphasises the highly prospective nature of both Buffalo and Giraffe prospects

- Kingfisher-3, Block 3A, has reached target measured depth of 3,200 metres and is being logged

Drilling Activity - Block 1, Uganda

The Buffalo-1 exploration well is being drilled to an anticipated depth of approximately 600 metres and is expected to take between two and three weeks to drill and complete.

The Warthog-1 discovery well in Block 1, which encountered a net hydrocarbon column of 46 metres in a gross interval of 150 metres, has lowered the exploration risk of Buffalo, Giraffe and other prospects in Block 1 significantly.

Warthog-1 was the first well drilled in a three well exploration programme in Block 1. It lies on a structural trend that can be traced from the Kasamene-1 discovery well, in neighbouring Block 2, northeast through the Giraffe and Buffalo prospects in Block 1. All of these prospects are characterised by seismic amplitude anomalies that appear to indicate the presence of hydrocarbons.

Drilling Activity - Block 3A, Uganda

The Kingfisher-3 appraisal well, which was spudded on 26 September 2008, is currently operating at target depth of 3,200 metres measured depth (total vertical depth 2,619 metres). A series of wireline logs are being run. Subsequent to operations being completed on Kingfisher-3, it is planned to drill the Kingfisher-3A sidetrack to an anticipated measured depth of approximately 2,860 metres, which is expected to be completed by late January or early February 2009. The well and sidetrack are being drilled to evaluate the southern limits of the oil field and to gather additional reservoir data in preparation for field development.



Planned Drilling Activity in 2008

Country Block Prospect Operated Estimated Spud
Interest Date/Status

Uganda Block 1 Buffalo 50% Being drilled

Uganda Block 1 Giraffe 50% December 2008

Uganda Block 3A Kingfisher 3/3A 50% Being drilled

Kurdistan
Region of Miran Miran West-1 100% December 2008
Iraq


Tony Buckingham, CEO, commented:

"Buffalo-1 is the second well to be drilled in Block 1 as part of our multi-well drilling programme in Uganda and has been derisked significantly with the Warthog-1 discovery announced last month. The current exploration programme has the potential to achieve the commercial threshold required for development of reserves in Uganda allowing for early development of the Albert Basin. This continues to be an exciting time for Heritage with a geographically diverse drilling programme which can act as a catalyst with a further two exploration wells planned to spud before year-end."

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% interest.

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.

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.

Contact Information

  • Heritage Oil Limited
    Tony Buckingham
    CEO
    +44 (0) 1534 873 000
    or
    Heritage Oil Limited
    Paul Atherton
    CFO
    +44 (0) 1534 873 000
    Email: tc@heritageoilltd.com
    or
    Heritage Oil Limited
    Tanya Clarke
    Investor Relations
    +44 (0) 20 7518 0838
    Email: tc@heritageoilltd.com
    or
    Bell Pottinger Corporate & Financial - PR - Europe
    Nick Lambert
    +44 (0) 20 7861 3232
    Email: NLambert@bell-pottinger.co.uk
    or
    Bell Pottinger Corporate & Financial - PR - Europe
    Andrew Benbow
    +44 (0) 20 7861 3232
    Email: ABenbow@bell-pottinger.co.uk
    or
    CHF Investor Relations - Investor Relations - Canada
    Cathy Hume
    (416) 868-1079 x231
    Email: cathy@chfir.com
    or
    CHF Investor Relations - Investor Relations - Canada
    Lindsay Carpenter
    (416) 868-1079 x239
    Email: lindsay@chfir.com