Heritage Updates Operations in Africa and the Middle East

Heritage Oil Limited announced the following operational update to accompany its Annual General Meeting.

Africa, Uganda, Block 3A

The Kingfisher-2 appraisal and exploration well in Block 3A, Uganda, was spudded on April 26. This deviated well is being drilled from the lakeshore by the Nabors 221 rig and is targeting multiple pay zones in the Kingfisher discovery located beneath Lake Albert. The well is currently at approximately 2,660 meters measured depth (2,195 meters true vertical depth). Hydrocarbon shows to date are analogous to those encountered in the original discovery well, Kingfisher-1. It is expected that the well will reach its target depth of 4,100 meters in 40 to 60 days time.

The Kingfisher-2 well is intended to appraise reservoir zones discovered by the Kingfisher-1 well, which was completed in 2007, as well as to explore a deeper primary objective which was not previously reached due to limitations of the drill rig used. The more capable Nabors 221 rig is drilling the Kingfisher-2 well. In the Kingfisher-1 well, four intervals were tested successfully in the secondary objective, resulting in an overall cumulative flow rate of approximately 13,900 bopd. The Kingfisher-2 wellsite is located approximately one kilometer northeast of the Kingfisher-1 wellsite.

Block 1

Drilling in Block 1, Uganda, is expected to commence in the third quarter of 2008. A multi-well program will target a number of relatively shallow structures characterized by amplitude anomalies on seismic data. A mobile rig that is currently drilling in the Butiaba region of neighboring Block 2 will be used for this program.


Heritage announced in April 2008 that it had signed documentation to farm-in to two licenses covering four exploration blocks in Tanzania, which were subject to the approval of the Government of Tanzania. Approval has been received for the farm-in to the Kimbiji and Latham license and approval is expected shortly for the Kisangire and Lukuliro license. The four exploration blocks cover approximately 25,000 square kilometers.

Middle East, Kurdistan Region of Iraq

A 2D seismic program of approximately 330 km that commenced in April 2008 has just been completed in the Miran Block, in the Kurdistan Region of Iraq. Initial interpretation of the seismic shows two large structures, each with multi-zone potential reservoir targets. A drilling program is currently expected to commence prior to the end of 2008.


Development of the West Bukha field is ongoing. The drilling rig "Courageous" arrived on location in mid-April and has been contracted to deepen the West Bukha-2 well and to drill the West Bukha-3 and West Bukha-4 wells. West Bukha-2 was drilled in 2006 and production tested 12,750 bopd and 26 MMscf/d of gas. The West Bukha-3 is being drilled and is currently at a depth of approximately 2,670 meters. Installation of the West Bukha wellhead platform was completed on 2 June and production is expected to commence during the second half of 2008.

Other Areas

As previously announced, Heritage has recently farmed-in or been awarded licenses in a number of new territories, including Mali, Malta and Pakistan, where operations have commenced. Heritage looks forward to updating shareholders on progress made on these new projects later this year.