Heritage Oil Sees Increase in Proven Reserves

Heritage Oil revealed that its combined oil reserve base has increased in West Africa, the Middle East and Uganda following a recent reserve evaluation undertaken by Scott Pickford Ltd., an ECL Group company, one of the world's leading geoscience consultancies.

The report notes that total proven reserves have climbed to 4.6 million barrels of oil equivalent (boe) compared with a provisional 0.9 million proven boe as estimated by management in the 2002 Annual Report. Total proven and probable reserves (unrisked) now stand at 17.8 million boe valued at an unrisked US$47.2 million or CDN$62.8 million. The proven plus risked 50% probable reserves are 11.2 million boe with a value of US$29.5 million (CDN$39.2 million).

Michael Wood, CEO, said that "we were deliberately cautious in the reserve estimates in the annual report, so we are delighted that an independent engineering evaluation has substantiated the underlying value of Heritage's asset base. Also, Heritage has significant future potential value with its prospective reserve base."

He pointed out that the Scott Pickford prospective reserve (exploration) is approximately a net unrisked 1.2 billion barrels and on a risked basis 127 million barrels. This evaluation is based on a revaluation of Block 3, Uganda, which has led to the mapping of a number of prospects on-block and undertaken following the encouraging results of the Turaco-1 exploration well. This prospect will be further appraised by the Turaco-2 well scheduled to commence drilling in the summer of 2003. Heritage and its partner, Energy Africa Uganda Limited, each hold a 50% interest in Block 3, Uganda.

Micael Gulbenkian, Chairman, noted that "we have been very excited about the prospects for Uganda ever since the drilling of Turaco-1. The Scott Pickford report only serves to underscore the potential for this area."