Heritage Oil Plc, an independent upstream exploration and production company, announces an operational update to accompany its Annual General Meeting at 22 Grenville Street, St. Helier, Jersey.
- The Miran West-4 appraisal well will shortly commence drilling on the Miran Block in Kurdistan. It will be the third appraisal well drilled on the Western structure
- The well is designed to further appraise the oil potential of the Upper Cretaceous reservoir
- It is intended that target intervals will be tested and evaluated as the high angle well is drilled to a target depth of c.1,550 metres
- The Miran East-1 well is currently drilling to the Lower Cretaceous reservoir and is on schedule to reach target depth in four months.
- Planning and development studies on the Miran field and FEED studies on a gas export pipeline are on going
- Tanzania work programme continues in the recently awarded Kyela and Rukwa licences with the reprocessing of legacy 2D seismic data and completion of a high resolution gravity survey. Acquisition of further 2D seismic is scheduled to commence in August 2012
Following the announcement of the successful testing of the Miran West-3 well in May 2012, drilling of the Miran West-4 oil appraisal well will commence shortly. It has an estimated target depth of c. 1,550 metres. This will be the fifth well drilled on the Miran block and the third appraisal of the Western structure. The high-angle well will appraise the oil within the Upper Cretaceous interval. The well design utilizes the recently acquired 3D seismic data and the enhanced understanding of the structural configuration within the Miran Field that this has provided.
On completion of the drilling of the Miran West-4 well, Heritage plans to undertake an extended well test of these oil-bearing reservoirs for a minimum period of six months, which is expected to commence before year-end. It is planned that up to 5,000 barrels of oil gross per day will be sold into the local market in Kurdistan.
In March 2012, Heritage announced that drilling of the Miran East-1 exploration well had commenced, with an estimated target depth of c.4, 000 metres. The well is targeting exploration potential within the Cretaceous and Jurassic reservoir intervals of the eastern structure. The well is currently drilling to the Lower Cretaceous reservoir and primary Jurassic targets and is on schedule to reach target depth in four months.
Monetisation and Development of the Miran Field
Heritage is considering a phased development of the Miran Field, which involves early development by the end of 2013, targeting between 80 and 180 MMscfd of gas for local supplies and the production of between 10,000 and 15,000 bpd of oil and condensate.
Full field development should comprise an integrated development of the oil, gas and condensate with export of the gas production to Turkey estimated to commence in 2015.
A feasibility study has been commissioned to consider building a gas pipeline to the border with Turkey, which is c.320 km away.
Work on conceptual development studies, gas-marketing plans and strategies continues.
Heritage is in discussions with the Kurdistan Regional Government, gas buyers and contractors regarding both early and full field development. This includes the export of the gas to Turkey where gas demand is increasing significantly and where average gas commodity prices are attractive.
Tony Buckingham, Chief Executive Officer, commented: “Operationally, Heritage is busy with its active work programmes. We remain focused on the Monetisation of the world class Miran Field, targeting the phased development of the field, whilst also considering significant further value generating production opportunities in our core areas of Africa and the Middle East.”