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Heritage Commences the Drilling of Miran West-3 Well

Source: www.gulfoilandgas.com 8/8/2011, Location: Middle East

Heritage Oil Plc, an independent upstream exploration and production company, announces that it has commenced drilling the Miran West-3 well in the Kurdistan Region of Iraq (Kurdistan).

Miran West-3 Well
Drilling of the Miran West-3 appraisal well has commenced. The well is targeting reservoir sections encountered in discovery wells with the primary objective of appraising the Jurassic and Cretaceous reservoir formations in the Miran West structure. Management estimates gross in-place volumes for the Miran West structure to have a P90-P50 range of 6.8-9.1 TCF of gas, with an upside P10 gas potential of 12.3 TCF. This is in addition to the estimated P50-P90 range of 42-71 MMbbls of condensate and 53-75 MMbbls of oil.

The Miran West-3 location and well trajectory provides a c.4.3 kilometre appraisal step out from the Miran West-2 Jurassic reservoir penetration. The planned well path targets the flanks of the structure. The well bore will be orientated and inclined to optimally intercept open fracture networks associated with multiple faults identified on recently acquired 3D seismic data. This well will also appraise the Cretaceous oil and gas reservoirs discovered in the Miran West-1 and Miran West-2 wells, further enhancing knowledge of the Miran structures. Drilling of the Miran West-3 well is expected to take approximately seven months with key reservoir intervals being tested as the well is drilled.

After drilling and testing, it is intended that this rig will move to drill the Miran West-4 appraisal well. A second rig is being sourced to drill the planned Miran East-1 exploration well, with drilling expected to commence before year-end, at which time there will be two rigs operating in the Miran Field.

3D Seismic Programme
The Miran 3D seismic programme is now approximately 90% complete. The significant improvement in seismic data quality over the Miran Field is encouraging and assists greatly with the selection of well locations. Initial interpretation of the first tranche of data acquired has highlighted increased resource potential, in particular for the Miran East structure. This potential will be targeted by the Miran East-1 exploration well to be drilled before year-end.

Tony Buckingham, Chief Executive Officer, commented: “The spudding of Miran West-3 begins our active multi-well exploration and appraisal drilling programme in Kurdistan. This first well is principally appraising the Cretaceous and Jurassic discoveries made in the Miran West-1 and Miran West-2 wells. We plan to provide regular announcements during the drilling of this well as the key reservoir intervals will be tested as the well is drilled.”

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