Heritage Oil’s Kingfisher-1 Well In Uganda Test Produces 4,120 BOPD

abarrelfullabarrelfull wrote on 21 Aug 2012 08:30

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November 6, 2006

Heritage Oil Corporation (TSX: HOC) today announced that the upper zone of the Kingfisher-1 well in Block 3A, Uganda was tested (DST#2) at a stabilized flow rate of c. 4,120 barrels of oil per day (bopd) through a fixed one inch choke at a flowing well head pressure of 221 psia. The oil was light (c. 30° API) and sweet with a low gas-oil ratio and some associated wax. The test rate was constrained by the available completion and test facilities, and the flow data indicated that when equipped for production, the well should be capable of flowing at stable rates of approximately 5,600 bopd. The flow data from the test indicated an extremely high permeability of over 2,000 milliDarcies, which partly explains why the test was constrained.

Two firm production tests, DST#1 and DST#2, were undertaken. DST#1 did not flow hydrocarbons to surface. DST#2 tested two zones totalling 10 metres over the interval from 1,783 to 1,795 metres which flowed at a stable rate of c. 4,120 bopd. Following interpretation of the data from these two tests a decision was taken not to proceed with any further testing.

The tests represented a secondary exploration objective for the well, which will now be sidetracked and drilling will continue to the deeper primary objectives. It could take a further 45 to 60 days to reach target depth of between 3,000 and 4,000 metres. The test equipment will remain on location to test the primary target.

The Kingfisher prospect is a very large structural high that is expressed at surface on the bed
of Lake Albert. Seismic data indicate the Kingfisher prospect has an areal extent of up to c.
70 square kilometres, although the Kingfisher-1 well will only investigate a limited part of
such a large structure.

Tony Buckingham, Heritage’s CEO stated
“The Albert Basin now looks increasingly like it has the elements to make it a world-class petroleum basin. The flow rates, even constrained by available completion and test facilities, far exceeded our expectations. We are delighted with the test results that have been produced from an upper zone which is not the primary target of the well. This discovery proves there is a working hydrocarbon system in Block 3A significantly reducing the exploration risk of the other high impact prospects that have been identified throughout our licenses in the Albert Basin. We look forward to accelerating the work programsinthebasin.”

Heritage is the Operator of Blocks 3A and 1 in Uganda with a 50% equity in the licenses,
with Tullow Oil holding the remaining 50% interests

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