Heritage All Smiles over Kingfisher-2 Results in Uganda Block 3A

Uganda Exploration Areas
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Heritage Oil Limited has announced successful tests of all three reservoir intervals in the Kingfisher-2 well in Block 3A, Uganda.


  • Three reservoirs produced at a cumulative flow rate of 14,364 bopd. Rates were constrained by surface test equipment.
  • Record test production from any well in Uganda.
  • Upgrade to Kingfisher potential oil reserves expected.
  • Rig to be moved to drill Kingfisher-3 in Block 3, Uganda, in September 2008.
  • Multi-well drilling programme to commence in Block 1, Uganda, in September 2008.

Kingfisher-2, Block 3A, Uganda, Test Results

Three reservoirs with a cumulative vertical net pay of approximately 37 meters between 2,654 meters and 2,783 meters measured depth produced at a cumulative flow rate of 14,364 bopd.

The higher rates recorded from all three test intervals were constrained by the surface test equipment. It appears that these three zones are equivalent to the same three intervals tested in the Kingfisher-1 well, which flowed at a combined rate of 9,773 bopd. Pressure data recorded from the DST-1 and DST-2 intervals indicate that the two lowermost sands are possibly in vertical communication and therefore could comprise the same reservoir. This could potentially lead to higher oil volumes.

The oil is good quality, of light to medium gravity and sweet, with a low gas-oil ratio and some associated wax. The reservoirs are highly permeable sandstones, with an estimated permeability from DST-1 of 2,250 milliDarcies.

It is likely that there will be an upgrade to potential oil reserves following drilling of the Kingfisher-2 well. Management of Heritage will look to update their estimated volumes following full evaluation of the test data. Prior to the drilling of Kingfisher-2, the gross contingent resources of Kingfisher were independently evaluated by RPS Energy to have a most likely volume of 118 million barrels.

The Nabors 221 rig will now move approximately three kilometers south of Kingfisher-2, along the Lake Albert shoreline, to drill the Kingfisher-3 appraisal well, which will evaluate the southern portion of this field.

Block 1, Uganda, Drilling Programme

The first drilling program in Block 1 is scheduled to commence this month, with the drilling of the Warthog prospect. This is part of a three well program which also includes the Buffalo and Giraffe prospects. Exploration risks in Block 1 have been significantly reduced due to the recent drilling success in Block 2, very close to the Block 1 border. A structural trend, characterized by high amplitude anomalies in the seismic data, can be traced northwards from Tullow Oil Plc's Kasamene-1 discovery, just 2.5 kilometres south of Block 1, through the Warthog, Giraffe and Buffalo prospects in Block 1.

Tony Buckingham, Chief Executive Officer, commented, "The cumulative flow rate of 14,364 bopd from the Kingfisher-2 well has surpassed our expectations, indicating the outstanding potential of the Kingfisher discovery. This is the third well in the Albert Basin to produce over 12,000 bopd under test and the second in Block 3A. Heritage is now embarking on its busiest and most exciting drilling schedule in Uganda, with a total of four wells planned to be drilled in Block 3A and Block 1 during the remainder of the year. This is an exciting time for Heritage, as we approach the commercial threshold for the development of our reserves in Uganda which will transform the Company."

Heritage is the Operator of Block 3A and Block 1 in Uganda with a 50% equity interest in the licenses with Tullow Oil Plc holding the remaining 50% interest.


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