Category: Oil & Gas
- Published: 29 November 1999
- Written by Editor
Heritage Oil Limited (LSE: HOIL), an independent upstream exploration and production company, announces successful tests of all three reservoir intervals in the Kingfisher-2 well in Block 3A, Uganda.
Highlights
- Three reservoirs produced at a cumulative flow rate of 14,364 bopd. Rates were constrained by surface test equipment
- Record test production from any well in Uganda
- Upgrade to Kingfisher potential oil reserves expected
- Rig to be moved to drill Kingfisher-3 in Block 3, Uganda, in September 2008
- Multi-well drilling programme to commence in Block 1, Uganda, in September 2008 Kingfisher-2, Block 3A, Uganda, Test Results
Three reservoirs with a cumulative vertical net pay of approximately 37 metres between 2,654 metres and 2,783 metres measured depth produced at a cumulative flow rate of 14,364 bopd on test as follows:
Drill Stem Test Gross Measured Maximum Oil Quality ChokeThe higher rates recorded from all three test intervals were constrained by the surface test equipment. It appears that these three zones are equivalent to the same three intervals tested in the Kingfisher-1 well, which flowed at a combined rate of 9,773 bopd. Pressure data recorded from the DST-1 and DST-2 intervals indicate that the two lowermost sands are possibly in vertical communication and therefore could comprise the same reservoir. This could potentially lead to higher oil volumes.
Depth Interval Flow Rate
Thickness
(DST) (metres) (bopd) (API) (inches)
1 20.2 5,178 29.7 48/64th
2 26.5 4,798 30.5 64/64th
3 12.0 4,388 32.0 48/64th
----------------------------------
58.7 14,364
The oil is good quality, of light to medium gravity and sweet, with a low gas-oil ratio and some associated wax. The reservoirs are highly permeable sandstones, with an estimated permeability from DST-1 of 2,250 milliDarcies.
It is likely that there will be an upgrade to potential oil reserves following drilling of the Kingfisher-2 well. Management of Heritage will look to update their estimated volumes following full evaluation of the test data. Prior to the drilling of Kingfisher-2, the gross contingent resources of Kingfisher were independently evaluated by RPS Energy to have a most likely volume of 118 million barrels.
The Nabors 221 rig will now move approximately three kilometres south of Kingfisher-2, along the Lake Albert shoreline, to drill the Kingfisher-3 appraisal well, which will evaluate the southern portion of this field.
Block 1, Uganda, Drilling Programme
The first drilling programme in Block 1 is scheduled to commence this month, with the drilling of the Warthog prospect. This is part of a three well programme which also includes the Buffalo and Giraffe prospects. Exploration risks in Block 1 have been significantly reduced due to the recent drilling success in Block 2, very close to the Block 1 border. A structural trend, characterised by high amplitude anomalies in the seismic data, can be traced northwards from Tullow Oil Plc\'s Kasamene-1 discovery, just 2.5 kilometres south of Block 1, through the Warthog, Giraffe and Buffalo prospects in Block 1.
Tony Buckingham, Chief Executive Officer, commented:
\"The cumulative flow rate of 14,364 bopd from the Kingfisher-2 well has surpassed our expectations, indicating the outstanding potential of the Kingfisher discovery. This is the third well in the Albert Basin to produce over 12,000 bopd under test and the second in Block 3A. Heritage is now embarking on its busiest and most exciting drilling schedule in Uganda, with a total of four wells planned to be drilled in Block 3A and Block 1 during the remainder of the year. This is an exciting time for Heritage, as we approach the commercial threshold for the development of our reserves in Uganda which will transform the Company.\" Heritage is the Operator of Block 3A and Block 1 in Uganda with a 50% equity interest in the licences with Tullow Oil Plc holding the remaining 50% interest.
Notes to EditorsExcept for statements of historical fact, all statements in this news release - including, without limitation, statements regarding production estimates and future plans and objectives of Heritage - constitute forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves and recoveries; production and operating cost assumptions; development risks and costs; the risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties as disclosed under the heading \"Risk Factors\" in its Prospectus and elsewhere in Heritage documents filed from time-to-time with the London Stock Exchange and other regulatory authorities. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company\'s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information.
- Heritage is listed on the Main Market of the London Stock Exchange
and is a constituent of the FTSE 250 Index. The trading symbol is
HOIL. Heritage has a further listing on the Toronto Stock Exchange
(TSX: HOC).
- Heritage is an independent upstream exploration and production
company engaged in the exploration for, and the development,
production and acquisition of, oil and gas in its core areas of
Africa, the Middle East and Russia.
- Heritage has producing properties in Oman and Russia and exploration
projects in Uganda, the Kurdistan Region of Iraq, the Democratic
Republic of Congo, Malta, Pakistan, Tanzania and Mali.
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SOURCE: Heritage Oil Corporation
Heritage Oil Limited, Tony Buckingham, CEO, Paul Atherton, CFO, +44 (0) 1534 873 000, +41 91 973 1800, (403) 234-9974, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Heritage Oil Limited - Investor Relations, Tanya Clarke, +44 (0) 20 7518 0838, This email address is being protected from spambots. You need JavaScript enabled to view it.; Bell Pottinger Corporate & Financial - PR - Europe, Nick Lambert, Andrew Benbow, +44 (0) 20 7861 3232, This email address is being protected from spambots. You need JavaScript enabled to view it., This email address is being protected from spambots. You need JavaScript enabled to view it.; CHF Investor Relations - Investor Relations - Canada, Cathy Hume, Lindsay Carpenter, (416) 868-1079 x231/x239, This email address is being protected from spambots. You need JavaScript enabled to view it., This email address is being protected from spambots. You need JavaScript enabled to view it.
