Heritage Oil Plc
TSX : HOC
LSE : HOIL

Heritage Oil Plc

June 22, 2012 02:00 ET

Heritage Announces That it has Commenced Drilling the Miran West-4 Appraisal Well in Kurdistan

LONDON, UNITED KINGDOM--(Marketwire - June 21, 2012) -

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), an independent upstream exploration and production company, announces that it has commenced drilling the Miran West-4 appraisal well in Kurdistan.

Highlights

  • The Miran West-4 appraisal well has commenced drilling on the Miran Block in Kurdistan
  • This is the fifth well to be drilled on the large Miran field and the fourth on the Western structure
  • The well is designed to further appraise the Upper Cretaceous oil reservoir
  • The Company intends to test and evaluate several intervals as the well is drilled to a target depth of c.1,550 metres
  • It is planned to drill a c.500 metre horizontal section in the oil bearing reservoir in order to maximise penetration of fractures
  • The well is expected to take approximately three and a half months to drill and test
  • On completion of the drilling, Heritage plans to undertake an extended well test of these oil bearing reservoirs selling between 3,000 to 5,000 barrels of oil gross per day into the local market

Drilling of the Miran West-4 oil appraisal well has commenced with an estimated target depth of c.1,550 metres. This will be the fifth well drilled on Miran and the fourth on the Western structure. This highly deviated step out well is targeting the oil within the upper Cretaceous on the flank of the structure and it is planned to drill a c.500 metre horizontal section in the reservoir in order to maximise penetration of fractures. The well design utilises recently acquired 3D seismic data and the enhanced understanding of the structural configuration within the Miran Field that this has provided. Drilling of Miran West-4 is expected to take approximately three and a half months. On completion of the drilling, Heritage plans to undertake an extended well test of these oil bearing reservoirs selling between 3,000 to 5,000 barrels of oil gross per day into the local market.

Tony Buckingham, Chief Executive Officer, commented:

"Following the highly successful Miran West-3 test results, the spudding of Miran West-4 continues our active work programme in Kurdistan. We remain focused on the monetisation of the world class Miran Field, targeting the phased development of the field, whilst also considering further value generating opportunities. The planned extended well test will sell up to 5,000 barrels of oil per day into the local market generating cash flow from the field."

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 an exploration, appraisal and development asset in the Kurdistan Region of Iraq, exploration assets in Malta, Tanzania, Mali, Pakistan, Libya and the Democratic Republic of Congo and a producing property in Russia.
  • Heritage Energy Middle East, a wholly-owned subsidiary of Heritage, is operator and holds a 75% interest in the Miran Block. There are third party back-in rights which could reduce the holding to 56.25%.
  • All dollars are US$ unless otherwise stated.

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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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