Heritage Oil Updates Progress of Turaco-2 Well

Heritage Oil reports that subsequent to commencing operations on Turaco-2, on October 6, a fresh cement plug is currently being set at approximately 1,500 meters across the base of the cased-hole section of the Turaco-1 well, that was suspended earlier this year, in preparation for drilling ahead.

The next 1,000 meters or so of drilling in Turaco-2 is essentially a re-drill of the section drilled by Turaco-1, which reached a total depth of 2,487 meters, subsequent to which the Company will be entering previously-un-drilled formations. The primary objective is the Kisegi Sandstone reservoir, which was not penetrated by the Turaco-1 well.

The Company's geological team has established that the shale encountered at total depth in Turaco-1 is the Kasande Formation, that at outcrop is seen to lie directly above the Kisegi Sandstone reservoir, and is thought to be the principal sealing shale within the basin. In Turaco-2 it is anticipated that the Kisegi Sandstone will be encountered at a depth of between 2,500-2,700 meters (though it may be deeper), which should be reached by mid to late November.

Company Chairman & CEO Micael Gulbenkian noted that "as we drilled into the Kasande Formation and approached total depth in Turaco-1 the gas shows, that had until that time been exclusively C1 (methane), for the first time also included the higher order gases (C2, C3 and C4), and for the first time we also recorded shows of live oil." The Company's geologists note that such a change in shows are often seen in a well for the first time upon penetrating a sealing shale that acts as the cap rock above an oil-bearing reservoir. This supports the argument that by drilling deeper and encountering the Kisegi Formation, there are positive indications to suggest that Heritage will find the reservoir to be oil-bearing. The level of confidence is sufficiently high within Heritage that well testing equipment has been mobilized to site, to avoid any unnecessary delay in testing Turaco-2 in the event that it proves to be a discovery.