Heritage Oil Corporation reports Turaco-2 update and contracts 3D seismicsurvey in Uganda
CALGARY, Jun 11, 2004 (Canada NewsWire via COMTEX) -- Heritage Oil Corporation (TSX: HOC.A) issued an update today on testing of the Turaco-2 well in Uganda. The Turaco-2 well in the Block 3 licence in Uganda was drilled to a total measured depth of 2,963 metres (2,949 metres true vertical depth).
Following the drilling and successful logging of the well, Heritage and its joint venture partner, Energy Africa, decided to significantly enhance the test program to conduct production tests on up to four separate potential hydrocarbon-bearing intervals through casing. The Company re-entered the well, but wellbore instability caused the drill string to become stuck while reaming in preparation for testing. Following an extensive program to retrieve the drill string and subsequent cost benefit analysis, the Company has decided to abandon this particular well in favour of an optimised appraisal program. Heritage has identified another drilling rig for immediate mobilisation into Uganda in order to accelerate the drilling program and realise the potential of the licence as rapidly as possible.
Micael Gulbenkian, Chairman and CEO stated, "We are undertaking appraisal and exploration activities in a virgin basin in a challenging location and so difficulties are to be expected. We have obtained extensive data from the drilling and logging programs which confirm the prospectivity of the licence."
To further demonstrate the Company's confidence in the hydrocarbon potential of Uganda, Heritage and Energy Africa have intensified the work program, commencing with the acquisition of a 350 sq km 3D seismic survey for approximately US$6 million. The seismic crew has been mobilised and the survey should be completed by October. Heritage has acquired three seismic surveys over the licence in the last five years which have identified a number of structures. The 3D seismic survey will delineate these structures and identify additional drilling targets for the two rigs which will be in country.
Heritage is the project operator and holds a 50% working interest.
Heritage is an international oil and gas corporation, with principal properties situated in the Republic of Congo, Oman, and Uganda. Heritage's registered office is located in Calgary, Alberta. The Company's Class "A" Common Shares trade on the Toronto Stock Exchange under the symbol HOC.A.
