LONDON, UNITED KINGDOM--(Marketwire - Jan. 25, 2012) -
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Heritage Oil Plc (LSE:HOIL)(TSX:HOC), an independent upstream exploration and production company, announces that it has been awarded a further Production Sharing Agreement ("PSA") in Tanzania. Heritage is the operator with 100% interest.
- The Kyela PSA, wholly located within Tanzanian territory, has an area of 1,934 square kilometres and covers the northern onshore area of the Lake Nyasa Basin
- Heritage has been awarded 100% interest and is the operator
- Gravity data and seismic data from the adjacent Lake Nyasa suggest the presence of a thick sedimentary section with the potential to generate oil
- The work programme will commence shortly with the acquisition of a c.1,500 square kilometre high resolution gravity survey followed by the acquisition of 2D seismic
The Kyela PSA covers the entire northern onshore area of the Lake Nyasa (Livingston) Basin that lies within Tanzanian territory. The block covers an area of 1,934 square kilometres and has never previously been targeted for hydrocarbon exploration. Gravity data over the area suggests the presence of a sedimentary section of sufficient thickness to allow for the generation of oil. Historical seismic data from the adjacent Lake Nyasa supports this interpretation. Whilst this area is a frontier exploration play it potentially shares certain geological similarities with the prolific Albert Basin of Uganda and Heritage's recently awarded Rukwa PSA in Tanzania.
The work programme will commence shortly with the acquisition of a c.1,500 square kilometre high resolution gravity survey. This is designed to determine the sediment thickness distribution and to delineate structural trends that could be associated with hydrocarbon traps. Based upon the results of this survey, a 2D reconnaissance seismic programme will be acquired.
In the event of an oil discovery the Kyela PSA lies approximately 125 kilometres from the railhead at Mbeya and economic scoping shows the commercial viability of either rail export to Dar es Salaam or export by pipeline depending on exploration success.
Tony Buckingham, CEO, commented:
"Following on from the award of the Rukwa PSA last year we are pleased to have been awarded further acreage in a prospective East African rift basin in Tanzania which could share geological similarities to the Albert Basin of Uganda. Our expertise, both technical and operational, on rift basins will provide Heritage with a key advantage in assessing the prospectivity of both new awards. We look forward to commencing the work programme in Tanzania over the next few months."
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, exploration projects in the Kurdistan Region of Iraq, the Democratic Republic of Congo, Malta, Pakistan, Tanzania and Mali and an investment in Libya.
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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.