Heritage Oil | About Heritage

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About Heritage

Heritage Oil Plc is an independent oil and gas exploration and production company with a Premium Listing on the London Stock Exchange (symbol HOIL). The Company is a member of the FTSE 250 Index. The Company has Exchangeable Shares listed on the Toronto Stock Exchange (symbol HOC) and the London Stock Exchange (symbol HOX). The Company has an exploration appraisal and development asset in the Kurdistan Region of Iraq, exploration assets in Malta, Tanzania, Mali, Pakistan, Libya and the Democratic Republic of Congo and a producing property in Russia.

Exploration Assets

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 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;
Testing was completed in August 2009 when a flow rate of 3,640 bopd was recorded from a single upper reservoir;
In November 2009 the Miran West-2 appraisal well commenced drilling;
The well was drilled to a depth of 4,426 metres and testing operations completed in January 2011;
Highly productive Jurassic reservoir intervals tested at a restricted cumulative flow rate of over 75 million cubic feet per day (MMscfd)
Estimated gross P90-P50 in-place volumes of between 6.8-9.1 TCF, with a P10 upside of 12.3 TCF;
Management estimates Heritage has mean risked contingent and prospective resources in Miran West and Miran East of 744 MMboe, based on a 75% working interest;
The Miran West-3 well commenced drilling in August 2011 with the primary objective of appraising the productivity of the Jurassic reservoir intervals;
To date oil has been confirmed in the Upper Cretaceous and gas in the Lower Cretaceous and Jurassic reservoirs;
The Miran East-1 well commenced drilling in March 2012 and is expected to take seven months to drill and test;
Acquisition of 3D seismic, covering 730 square kilometres, over the Miran Block was completed in 2011;
180 kilometres of 2D seismic on the southern portion of the Miran block to help identify further prospectivity was completed in October 2011 and a structure has been identified; and
Options are being reviewed for a phased development of the Miran Field which includes early gas production to existing and planned cement and power plants for local markets in Kurdistan as well as exports to Turley and possibly to the European market under full field development.

Tanzania

A PSA covering Rukwa North Basin and Rukwa South Basin, was signed in November 2011
Work programmes havecommenced and Heritage has committed to acquire c.600 kilometres of new 2D seismic data and will also reprocess and reinterpret the legacy seismic database;
The Kyela PSA was signed in January 2012;
The acquisition of a gravity survey will commence shortly following which a seismic programme will be planned;
The Latham PSA was signed in 2008.

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;
Heritage has an extensive data set of approximately 5,000 kilometres of 2D seismic; and
Prepartations are underway to drill a high-impact well in Area 7.

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;
Previous drilling in the Gao Graben encountered oil and gas shows; indicating the presence of a working hydrocarbon system; and
Acquisition of 1,077 kilometres of 2D seismic data was acquired over both blocks between June and August 2011.

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).;
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; and
A well is planned to commence drilling on the Zamzama North licence when the challenges presented by floods are overcome.

Democratic Republic of Congo ("DRC")

Heritage signed a PSA with the government of the DRC in July 2006 for an interest in Blocks I and II in the prospective Albert Basin; 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; and
On 24 June 2010, the government awarded the licences via Presidential decree to two British Virgin Islands-registered companies.

Libya

Heritage has a controlling 51% interest in Sahara Oil Services Holdings Limited ("Sahara Oil") which owns the entire share capital of Sahara Oil Services Limited ("Sahara"), an oil field services company in Libya;
Sahara has been granted long-term licences to provide full oil field services in Libya, including the ability to drill onshore and offshore and hold both oil and gas licences;
Heritage established a base in Benghazi in early 2011 and has been in discussions with senior members of the National Transitional Council ("NTC"), the legitimate and recognised government of Libya, the Executive Committee which is the executive arm of the NTC and the National Oil Company and certain subsidiaries. The dialogue with these parties continues through Sahara with Heritage exploring ways to assist the NTC and the state oil companies rehabilitate certain of their existing fields and recommence production; and
Through this acquisition Heritage is looking to play a significant role in the future development of the oil and gas industry in Libya

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, a total of 13 wells have been drilled on the licence including four by Heritage;
Production in 2011 averaged 673 bopd, an increase of 24% over the previous year's level; and
A horizontal well completed in August 2011.