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Heritage Oil encounters hydrocarbons in Kingfisher-1A well in Uganda

Source: www.gulfoilandgas.com 1/15/2007, Location: Africa

Heritage Oil Corporation announced that hydrocarbons in three zones totalling approximately 40 metres have been encountered in the Kingfisher-1A well in Block 3A, Uganda. As reported on November 6, 2006, a secondary objective of the Kingfisher-1 well successfully flow tested 4,120 barrels of oil per day from two zones perforated over an interval between 1,783 and 1,795 metres. The oil was light (c. 30 degrees API) and sweet with a low gas-oil ratio and some associated wax.

Following the encouraging result in the secondary objective of the Kingfisher-1 well, the partners commenced drilling the Kingfisher-1A sidetrack, which aimed to step-out into the basin to test the primary exploration objectives of the well and penetrate as much of the deeper sedimentary section as possible to a maximum depth of 4,000 metres. Since the last report, the Kingfisher-1A well has been successfully cased to 2,502 metres and drilled to a depth of 2,962 metres.

New drilling in the deeper section has encountered three additional potential oil-bearing zones totalling approximately 40 metres between 2,260 and 2,370 metres, evidenced by wireline logging and formation pressure testing. Planned testing of these zones will follow completion of drilling, to a target depth of between 3,000 and 4,000 metres, which it is estimated will take up to a further 45 days. Test equipment has remained on site in readiness for the testing.

The Kingfisher prospect is a very large structural high that is expressed at surface on the bed of Lake Albert. Seismic data indicates the Kingfisher prospect has an areal extent of up to approximately 70 square kilometres, although the Kingfisher-1A well is only investigating a limited part of this structure.

As part of an accelerated work program in Uganda, the joint venture partners are planning to acquire approximately 270 square kilometres of 3D seismic over the Kingfisher structure commencing in the first half of 2007. Options for further drilling of the Kingfisher prospect and other prospects in Lake Albert are being appraised.

Heritage is operator of and holds a 50% interest in Block 3A, which has an area of 1,991 square kilometres. Heritage is also operator of and holds a 50% interest in Block 1, which has an area of 4,285 square kilometres and is located to the north of Block 3A in the Albert Basin. Tullow Oil plc holds the other 50% interests in Blocks 3A and 1.

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