Heritage Oil Limited

Heritage Oil Limited

February 18, 2009 09:12 ET

Heritage Oil Announces First Oil From West Bukha Field, Oman

CALGARY, ALBERTA--(Marketwire - Feb. 18, 2009) -


Heritage Oil Limited (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces the commencement of oil and associated gas production from the West Bukha field in Block 8, located in the Strait of Hormuz offshore of the Sultanate of Oman ("Oman"). Heritage has a 10% working interest.


- Initial gross flow rates of approximately 15,000 barrels of oil equivalent per day, comprising 10,000 barrels of 42 degree API oil and 30 million cubic feet (MMcf) per day of associated gas

- West Bukha field has additional untapped potential

- Provides a significant increase in current production levels for Heritage

The West Bukha field in Oman has commenced production with initial flow rates of approximately 10,000 barrels per day of good quality, light sweet, 42 degree API oil and 30 MMcf per day of associated gas from the Mishriff-Maudud and Thamama reservoirs. Production is from two wells through a recently installed six-slot unmanned platform located in 90 metres of water approximately 25 kilometres from the Musandam Peninsula. The field is considered to have additional untapped potential which will require further appraisal.

Production is tied through a sub-sea 12-inch multiphase flow line to the nearby Bukha production platform. The Bukha gas condensate field, also in Block 8, commenced production in 1994 and today can flow an additional 10 to 15 MMcf per day of non-associated gas with condensate. Output from the two fields is transported to shore by a 33-kilometre multiphase pipeline for processing at the Khor Khwair plant in the Emirate of Ras Al Khaimah. Oil and condensate are slated for export and gas is delivered to industrial and commercial users in the Emirate.

Eagle Energy (Oman) Limited, a wholly-owned subsidiary of Heritage, acquired its 10% working interest in Block 8 offshore Oman in 1996. The licence area covers 423 square kilometres containing the Bukha gas condensate field and the West Bukha oil field. The West Bukha field straddles the maritime boundary between Oman and the Islamic Republic of Iran.

Tony Buckingham, Chief Executive Officer, commented:

"The successful development of the West Bukha field brings onstream a material increase to Heritage's production. Additionally, there is further potential within the field that is yet to be appraised which could provide a further boost to production levels. This marks a significant milestone for both the project and the joint venture partners."

Heritage Oil has a 10% interest in Block 8 offshore Oman. The other joint venture partners are RAK Petroleum (operator and 40% interest) and LG International (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.

- 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.


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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