About Heritage

Heritage Oil Plc is an independent, international oil and gas exploration, development and production company with a focus on Africa, the Middle East and Russia. Its shares trade on the London Stock Exchange (LSE), under the symbol HOIL, with a secondary listing on the Toronto Stock Exchange, (TSX), under the symbol HOC.

Heritage is a versatile organisation, dedicated to creating and increasing shareholder value with a portfolio of quality oil and gas assets managed by a highly experienced team with excellent technical, commercial and financial skills. The Company has a producing property in Russia, along with exploration projects in the Republic of Uganda, the Democratic Republic of Congo, the Kurdistan Region of Iraq, Tanzania, Mali, Malta and Pakistan. The Company's production, development and exploration projects, together with potential opportunities, provide a combination of early cash flow and longer term value creation opportunities.

Exploration Assets

Uganda

Block 3A

Uganda Kingfisher Well-site

Kingfisher Well-site

  • On 13 January 2009, Heritage announced that there were now sufficient reserves discovered in the Albert Basin to exceed the commercial threshold for development;
  • Heritage operates and holds 50% working interests in Blocks 1 and 3A, situated in the Albert Basin in Uganda, which is considered the most exciting new oil and gas play in Sub-Saharan Africa in the past decade, with multi-million barrel reserve potential;
  • The Albert Basin is one of the key focus areas for Heritage. The gross acreage position covers in excess of 12,000 square kilometres, roughly equivalent to fifty five North Sea blocks;
  • In 2006/7, Heritage's Kingfisher-1 well in Block 3A produced from four zones at an overall cumulative maximum flow rate of 13,900 bopd;
  • This was followed in 2008 with the Kingfisher-2 well which flowed at an impressive 14,364 bopd from three zones. The equivalent zones in Kingfisher-1 flowed at 9,773 bopd;
  • Heritage announced on 11 December 2008 that the Kingfisher-3 well had encountered oil in all three reservoir intervals with a gross hydrocarbon-bearing interval of 110 metres and net oil pay of up to 40 metres. The south-west part of the field is structurally higher than expected which extends the field boundaries;and
  • Plans are being developed to drill the offshore prospects in Lake Albert such as Pelican and Crane commencing in 2010.

    • Block 1

  • Heritage announced the Warthog-1 discovery, in Block 1, on 21 October 2008 which had a gross hydrocarbon-bearing interval of approximately 150 metres with 46 metres of net hydrocarbon pay;
  • Heritage announced the Buffalo-1 discovery, in Block 1, on 16 December 2008 which had a gross hydrocarbon-bearing interval of approximately 123 metres with 43 metres of net hydrocarbon pay;
  • Heritage announced the Giraffe-1 discovery, in Block 1, on 13 January 2009 which had a gross oil-bearing interval of approximately 89 metres with approximately 38 metres of net oil pay;
  • The Giraffe discovery is considered to be structurally connected to the Buffalo discovery, creating the Buffalo-Giraffe complex with an area of 48 square kilometres and an oil column of approximately 140 metres;
  • Based on current mapping the Company's initial estimate of reserves for the Buffalo-Giraffe complex is over 400 million barrels;
  • The Buffalo-Giraffe complex may extend further to the north and east and include the Buffalo East prospect, which could create one very large structure of up to 90 square kilometres; and
  • Plans are being developed to drill the offshore prospects in Lake Albert such as Pelican and Crane commencing in 2010.
  • A six well exploration and appraisal programme will begin in Block 1 in Q4 2009

Kurdistan Region of Iraq

  • In October 2007, Heritage executed a Production Sharing Agreement (PSA) with the Kurdistan Regional Government over the Miran Block in the Kurdistan Region of Iraq;
  • The licence covers an area of 1,015 square kilometres;
  • The Miran structure is potentially very large and management estimates that the structure could contain multiple billion barrels of oil;
  • The nearby Kirkuk oil field has remaining reserves in excess of 10 billion barrels;
  • In H1 2008 Heritage completed the acquisition of a 330 km seismic survey of the Miran structure;
  • It was announced on 6 May 2009 that the Miran West structure was estimated to have oil-in-place of between 2.3 to 4.2 billion barrels with a recovery factor of between 50% and 70%;
  • Miran West-1 well has an estimated gross oil-bearing interval of 710 metres;
  • Testing was completed in August 2009 when a flow rate of 3,640 bopd was recorded from a single upper reservoir
  • A production rate of 8,000-10,000 bopd is anticipated from the well; and
  • Success of Miran West-1 has significantly lowered the exploration risk of the adjacent, Miran East structure

Tanzania

  • Heritage has farmed into the Kisangire and Lukuliro licences as operator and the Kimbiji and Latham licences;
  • The Kisangire and Lukuliro licence areas cover an area of 7,280 and 8,828 kilometres respectively and are held under one production sharing agreement ("PSA");
  • The Latham and Kimbiji licences cover 5,056 and 4,298 square kilometres respectively and are also held under one PSA;
  • Active oil seeps, a recent gas discovery in a neighbouring block and the existence of producing gas fields indicates the presence in the basin of a working hydrocarbon system that is generating both oil and gas; and
  • Seismic has recently been acquired on the Kimbiji and Kisangire blocks.

Malta

  • Licences cover approximately 18,000 square kilometres offshore Malta;
  • Heritage signed a PSA with the Maltese Government in December 2007, for a 100% operating interest in Areas 2 and 7; and
  • A number of prospects have been identified based on existing seismic data.

Mali

  • Licences cover a gross area of over 72,000 square kilometres;
  • Heritage farmed-in to Blocks 7 and 11 in the Republic of Mali, North-West Africa, in November 2007 earning a 75% working interest and being appointed as operator; and
  • Previous drilling in the Gao Graben encountered oil and gas shows; indicating the presence of a working hydrocarbon system.

Pakistan

  • In November 2007, Heritage executed a PSA with the Government of Pakistan over the Sanjawi Block (number 3068-2). Heritage has a 54% interest and has been awarded operatorship. The Sanjawi Block covers 2,258 square kilometres and is situated in Zone II (Baluchistan). It contains a number of large anticlinal structures which could be potential drilling targets; and
  • In May 2008 the Group also farmed-in to the Zamzama North Block (number 2667-8) in Zone III (Sindh). Heritage has been awarded a participating interest of 48% and operatorship of the block. This onshore exploration licence covers a gross area of 1,229 square kilometres and is adjacent to, and immediately north of, the giant Zamzama gas-condensate field.

Democratic Republic of Congo (DRC)

  • Heritage signed a PSA with the government of the DRC in July 2006 for a 39.5% interest in Blocks I and II in the prospective Albert Basin;
  • The work programme will commence following receipt of a Presidential Decree; and
  • Blocks I and II cover more than 6,000 square kilometres and extend over the onshore and offshore acreage in the DRC part of the Albert Basin that extends into neighbouring Uganda.

Producing Asset

Russia

  • Heritage Oil has a 95% interest in Zapadno Chumpasskoye, a development project in the West Siberian Basin of Russia;
  • The field commenced production in May 2007 and Heritage has drilled three wells and acquired over 200 km of seismic data on the licence; and
  • Net production in H1 2009 was 231 bopd