Heritage Hits Paydirt, Digs Deeper at Miran West

Heritage Oil has issued an update on drilling of the Miran West-2 well in the Kurdistan Region of Iraq.

  • The Miran West-2 well has intersected significant hydrocarbon-bearing intervals over approximately 1,800 meters within Cretaceous formations
  • Three zones, determined from logging, will be tested when the deeper target depth has been reached
  • Significant structures have been mapped within the previously undrilled Jurassic and Triassic levels, substantially adding to the hydrocarbon potential of the Miran structure
  • The Miran West-2 well will continue to be drilled to a revised target depth of 4,600 meters to encounter these deeper exploration targets. This is expected to take a further four to five months
  • 3D seismic program to commence in the second half of 2010

The Miran West-2 appraisal well, which spudded on November 26, 2009, has reached a current depth of 2,627 meters and encountered hydrocarbon-bearing intervals totaling approximately 1,800 meters within Cretaceous formations. An extensive coring program of approximately 250 meters was undertaken in the well.

This appraisal well is being drilled within a part of the Miran West structure where it now appears the fracture network is less well developed. This variability in fracture development is consistent with the carbonate reservoirs throughout the region. This resulted in no hydrocarbons being flow tested to surface from the interval within Miran West-2 equivalent to that successfully tested in Miran West-1. However, having undertaken wireline logging, three zones from within a deeper Cretaceous interval have been identified for testing once drilling operations have been completed.

The well will now be deepened to approximately 4,600 meters to explore further potential in the underlying Jurassic and Triassic structures. These targets have been identified from additional seismic data acquired in January 2010, after the Miran West-2 well had commenced drilling. These exploration targets have the potential to contain substantial volumes of additional hydrocarbons. It is expected that drilling will take a further four to five months, following which the well will be tested.

Heritage is planning to acquire 3D seismic data over the Miran Block to enable further appraisal drilling to encounter the fracture networks more efficiently. The Miran West-1 well has previously demonstrated that where open fractures are encountered in wells the reservoir will support potential production rates of approximately 10,000 bopd.

Future plans for the drilling of the Miran East-1 exploration well are progressing and the Company is looking to contract a rig for later this year.

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 kilometers and is located west of the city of Suleimaniah.


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