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Heritage Oil Completed Testing of the Miran West-1

Source: 8/17/2009, Location: Middle East

Heritage Oil Plc, an independent upstream exploration and production company, announces the completion of testing the Miran West-1 discovery in the Kurdistan Region of Iraq.

The second phase of testing the Miran West-1 discovery has been completed and the well is being suspended as a future producer. During this second phase of testing the well flowed at a maximum rate of 3,640 bopd from a single upper reservoir layer. The rate was restricted by surface equipment capacity and the data gathered from the test indicates that the well should produce at a rate of between 8,000 to 10,000 bopd when placed on production.

Initial Miran West-1 drilling operations were designed to cope with the potential for high reservoir pressures and this resulted in the loss of drilling fluid and lost circulation material in these highly permeable fractured reservoirs. Tests on two other deeper reservoir intervals in the well were unsuccessful because of damage and contamination sustained during drilling. Consequently, the remedial measures undertaken during re-testing operations were no more effective than during the initial testing phase.

The Miran West-1 tests did confirm both the high potential well productivity and the presence of an extensive fracture network.

The rig will now move approximately 4 km north east to commence drilling the Miran West-2 appraisal well in the fourth quarter. The knowledge and experience gained from the first well will allow the Miran West-2 well to be drilled to optimally production test all reservoir intervals.

Tony Buckingham, Chief Executive Officer, commented:
“We are very encouraged by this result in a well where the lower formations were badly damaged through drilling. Miran West-1 was the first wildcat exploration well ever drilled on this licence covering two structures, which together total approximately 320 square kilometres. The well had to be drilled in accordance with good oilfield practice in a region characterised by high pressure and hydrogen sulphide. We have gathered important information which will be invaluable in advancing our forward programmes on this significant discovery beginning with the Miran West-2 appraisal well.”

Heritage Energy Middle East, a wholly owned subsidiary of Heritage, is operator and holds a 75% interest in the Miran Block, with Genel Energy International Limited holding 25%. The Miran Block contains two large structures, Miran West and Miran East, which have been mapped from the 332 kilometres of excellent quality seismic data acquired by Heritage between April and June 2008.

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