Heritage Oil Sees Good Results from Turaco-1 Well in Uganda

Heritage Oil reports that its Turaco-1 well in Uganda was drilled to 2,487 meters and encountered good shows of both methane and higher order gasses (C1 to C4) and also shows of live oil. The shows of methane were encountered over an interval spanning more than 500 meters and were confirmed by logs. Towards the bottom section of the well higher order gasses (C2 to C4) and live oil shows were encountered, but unfortunately mechanical difficulties were experienced during the coring of this section, which Heritage subsequently was unable to log.

The results of the well have vindicated the hydrocarbon potential of the basin and demonstrated the presence of a mature oil source, reservoir and seal. Seismic mapping on the onshore part of Block 3 acreage shows a number of additional substantial prospects with potential oil resources measuring several billions of barrels.

Heritage and its joint venture partner, Energy Africa, have agreed to fast track the drilling of Turaco-2, with a spud date expected in July/August 2003. Turaco-2 will penetrate the section with live oil shows encountered by the Turaco-1 well, and will also target a deeper oil prospect defined following the interpretation of the Turaco-1 results and the remapping of the Turaco prospect. The Turaco-2 well is a commitment well and two further contingent wells are also in the program.

Given the initial success that the Turaco-1 well has had in encountering hydrocarbons, Heritage will be mobilizing a substantially more powerful drilling unit to Uganda to drill Turaco-2, which will have three times the power of the previous rig. The joint venture also plans to mobilize well test equipment, to ensure that a full evaluation of the prospect can be undertaken.

A 2D seismic acquisition campaign on Lake Albert will commence in early April 2003. This program will acquire 450 kilometers in Block 3 and will be part of a larger program acquired by Hardman Resources in Block 2 in the northern part of the Lake.

Michael Wood, CEO said, 'Heritage is confident of our continued success in Uganda and our commitment is demonstrated by the mobilization of a more powerful drilling unit, well test equipment and a new seismic campaign. It is important that we move forward with our team and the right equipment to further establish the prospectivity and confirm the potential of the basin.'

Micael Gulbenkian, Chairman added: 'We are very pleased to be able to announce such encouraging results from our Ugandan exploration play, which we believe has the potential of being a new world class basin. This is an especially encouraging result following the success of Heritage's exploration well in Oman announced earlier this year.'

Heritage holds a 50% working interest in Block 3, Uganda and is the Operator. Energy Africa Uganda Limited also holds a 50% working interest.