Heritage Commences Drilling the Miran West-2 Well

Source: www.gulfoilandgas.com 11/26/2009, Location: Middle East

Heritage Oil Plc, an independent upstream exploration and production company, announces that it has commenced drilling the Miran West-2 appraisal well in the Kurdistan Region of Iraq (“Kurdistan”).

Drilling of the Miran West-2 well has commenced. The well is planned to appraise the reservoir sections encountered in the Miran West-1 discovery well, whilst minimising the risk of formation damage. This appraisal location, approximately four kilometres northwest from the Miran West-1 discovery well has been selected to optimally test the reservoir intervals whilst further enhancing knowledge of the structure and associated fracturing. The Miran West-2 well is scheduled to take approximately four months to drill and targets the three principal Cretaceous reservoir formations in the Miran West-1 well, where a 700-metre oil column was encountered.

Miran West-2 is the first well in a planned multi-well drilling programme on the Miran Block, which includes an exploration well on the Miran East structure.

The Miran Block contains two large structures, Miran West and Miran East, which have been mapped from the 332 kilometres of excellent quality seismic data acquired by Heritage in the second quarter of 2008. Testing of the Miran West-1 discovery well concluded in August 2009, with a constrained flow rate of 3,640 bopd from one horizon due to formation damage in the lower reservoirs. It was estimated that the well has an estimated production potential of between 8,000 and 10,000 bopd.

Tony Buckingham, Chief Executive Officer, commented:
“The spudding of Miran West-2 launches an active twelve month exploration and appraisal drilling programme in Kurdistan. We learned a great deal from the Miran West-1 well and believe this well will be drilled in an optimal way. There is also further upside potential with the neighbouring Miran East structure, scheduled to be drilled in 2010, which together with Miran West has an area of approximately 330 square kilometres. Our previous discovery has highlighted the prospectivity of the Miran Block, which potentially contains billions of barrels of oil and has the capability to deliver significant value for Heritage.”

Heritage Energy Middle East, a wholly-owned subsidiary of Heritage, is operator and holds a 75% interest in the Miran Block and Genel Energy International Limited the remaining 25%, although there are third party back-in rights. The Miran Block has an area of 1,015 square kilometres and is located west of the city of Suleimaniah.


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