Heritage Oil has completed testing of the oil bearing Upper Cretaceous reservoir in the Miran West-3 well in the Kurdistan Region of Iraq (Kurdistan).

Highlights •Maximum flow rate achieved from the Upper Cretaceous reservoir was 1,950 bopd, restricted by surface equipment •Confirmed gross in-place P50-P90 contingent volumes of 53-75 MMbbls of oil in the Upper Cretaceous reservoir in the Miran West structure •Results from the well confirm that development wells could produce 8,000-10,000 bopd per well from this reservoir •Drilling operations continuing ahead as planned Heritage has successfully completed testing of the Upper Cretaceous reservoir in the Miran West-3 well, after drilling to a depth of 876 meters. During testing the maximum measured rate achieved from this reservoir section was 1,950 bopd. Attempts to flow the well at higher rates were severely restricted by the capacity of the surface test equipment. The oil produced on test is estimated to be 15 degree API with very little associated gas, similar to that tested from the same interval in the Miran West-1 discovery well.

Pressure data has allowed the depth of the oil-water contact to be determined and this has confirmed previous gross in-place contingent P50-P90 volumes, estimated by management, of 53-75 MMbbls of oil in the Upper Cretaceous reservoir of the Miran West structure. This information will be incorporated into the ongoing interpretation of the newly acquired 3D data. In addition, based on management's interpretation of these results, it has been confirmed that future development wells in this reservoir section should be able to achieve 8,000-10,000 bopd per well on production.

Drilling operations are continuing on prognosis to test the deeper reservoirs discovered by previous drilling.

Tony Buckingham, CEO, commented, "We are encouraged by the results of our first test in the Miran West-3 well which has confirmed the contingent resource in the Upper Cretaceous reservoir of the Miran West structure. Drilling of this well is demonstrating the ability to intersect the productive fracture network associated with multiple faults identified on recently acquired 3D seismic data. We are drilling ahead with a view to conducting the next test in the Lower Cretaceous reservoir."

Tags: Heritage Oil Corporation