HERITAGE OIL ANNOUNCES THE COMPLETION OF THE SUCCESSFUL KINGFISHER-3A WELL IN BLOCK 3A, UGANDA
Heritage Oil Limited (LSE: HOIL), an independent upstream exploration and production company, announces the successful completion of the Kingfisher-3A (Kajubilizi-3A) well in Block 3A, Uganda.
- The Kingfisher-3A appraisal well has a gross oil-bearing interval of approximately 90 metres, with approximately 22 metres of net oil pay
- All three Kingfisher reservoir intervals were intersected and pressure data indicate these to be in communication with the intervals production tested in Kingfisher-1A and Kingfisher-2
- An extensive coring programme has been undertaken and analysis is expected to take approximately 8 weeks
- Development options for the Albert Basin are being considered
Drilling of the Kingfisher-3A sidetrack well in Block 3A, Uganda, has now been completed. The well reached a total measured depth of 2,712 metres (1,875 metres true vertical depth) and has been successfully logged. The well encountered a gross oil-bearing interval of approximately 90 metres with net oil pay of approximately 22 metres.
The Kingfisher-3A well intersected all three Kingfisher Upper Miocene reservoir intervals present in the Kingfisher-1A and 2 wells. An extensive coring programme was undertaken from the three reservoir intervals and initial analysis confirms high permeabilities of up to 3,000 milliDarcies. Pressure data and fluid samples confirm the three reservoir intervals to be in communication with the three intervals production tested in the Kingfisher-1A and Kingfisher-2 wells at 9,773 bopd and 14,364 bopd respectively. This demonstrates the lateral continuity of the reservoir intervals and also provides strong evidence to support previous determinations of the level of the oil water contacts within the reservoirs. The well results confirm the Company's resource estimates for the field, while further analysis of the core data could provide an upgrade.
The Kingfisher-3A well has been suspended as a production well, in addition to the previously drilled and suspended Kingfisher-1A and Kingfisher-2 wells.
The drilling of the Kingfisher-3A well completes the initial appraisal drilling programme for the Kingfisher field. In light of Heritage's recent discovery of the Buffalo-Giraffe field in Block 1, which has significantly increased the total estimated resources for the Albert Basin, the Company and its partner, Tullow Oil, are working on a commercial development plan for the basin.
Since the drilling of the initial discovery well, Kingfisher-1, in August 2006, the field has exceeded management's expectations with production test results from the Kingfisher-1A and Kingfisher-2 wells highlighting the outstanding potential of this discovery. Furthermore, the Kingfisher-3 well indicated that the southern flank of the field is approximately 100 metres higher than initially expected, significantly increasing the estimated areal extent of the field. The Kingfisher field contains light sweet crude oil, between 30 and 32 degree API with a low gas-oil ratio and some associated wax.
The successful drilling of the Kingfisher field has lowered the exploration risk of other exploration targets within Block 3A which will be explored in a lake bed drilling programme, scheduled to commence next year.