Heritage Oil’s West Bukha-2 Well In Oman Test Produces An Aggregate Of 12,000 BOPD From Primary And Secondary Targets

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November 21, 2006

Heritage Oil Corporation (TSX: HOC) today announced that Indago Petroleum Limited, the operator of the West Bukha-2 well in Block 8
offshore the Sultanate of Oman, in which Heritage is a 10% partner, issued the following press release:

Successful Testing of West Bukha-2 Primary Target, Offshore the Sultanate of Oman

  • Initial tests suggest a significant oil and gas project to be developed at West Bukha-2.
  • Oil flowrates of up to 7,600 bbls/d on the primary target (Mishrif/Mauddud) of the West Bukha-2 well.
  • Incremental to 4,392 bbls/d testing of the secondary target (Thamama) announced on 8th November.
  • West Bukha-2 adjacent to existing oil and gas infrastructure.

Indago Petroleum ('the Company'), the oil and gas exploration and production company operating in Oman and the UAE, is pleased to announce that Indago Oman Limited ('IOL') (a wholly owned subsidiary of Indago Petroleum Limited), as operator of Block 8, along with our partners, Eagle Energy (Oman) Limited (10%) and LG International (50%), has successfully flowed hydrocarbons from the Mishrif formation, the primary target of West Bukha-2A (WB2A) well.

The flowing test was being carried out over a perforated interval of 60m spanning a depth from 4,005m to 4,127.5m (MDRKB). After acidisation and an initial clean-up period the well flowed at a average rate over 5 hours of 6,000 bbls/d of 41.5o API oil and 16.9 mmscf/d of gas on a choke size of 48/64' and flowing tubing pressure of 2,980 psia. On increasing the choke size to 60/64' the rates increased to approximately 7,600 bbls/d and 20.5 mmscf/d with a flowing tubing pressure of around 2,450 psia. Indago is pulling out the test equipment from the well, and depending on analysis of the results, including the downhole pressure data, the Joint Venture will decide whether to carry out further testing.The main objective in drilling this well was to prove the commerciality of the MishrifMauddud reservoir in the West Bukha field, which had been assigned a 2P reserve base of 320 Bscf plus 33 million bbls of associated liquid hydrocarbons by an independent auditor.

Indago are now planning to commission a revised reserve audit incorporating the results of this latest well.

Peter Sadler, CEO of Indago Petroleum commented:
“We are delighted to have achieved such a strong oil and gas flow from our primary objective and this is a credit to our technical and operational team. These flows when combined with the 4,392 bbbl/s from the secondary target, lead us to be very confident that a significant resource is being established by the results of this well.”

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