Technical issues threw a spanner into the works in the first quarter of 2012 at Heritage Oil, but that did not stop the group celebrating a successful test drilling in Kurdistan.
The independent upstream exploration and production company reported that production for the first quarter of 2012 averaged 605 barrels of oil per day, an increase of 40% on the same period in the prior year. However, this was 38% lower than the fourth quarter of 2011 due to a temporary mechanical issue on well 363, which is in the process of being resolved.
The Miran West-3 well in Kurdistan was successfully tested and is now being suspended pending completion as a production well.
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Testing resulted in a constrained flow of up to 22 million standard cubic feed per day (mscf/d) of wet gas with a yield of 20 barrels per mscf of 55 API (American Petroleum Institute) condensate. It is estimated that this well will be capable of delivering 50 MMscf/d of wet gas and 1,000 barrels a day (bbl/d) condensate when put into production.
The Miran East-1 well encountered oil shows which are consistent with wire-line log interpretation, indicating the presence of hydrocarbons, while pressure data indicates that the east and west structures are linked. Operations on the well are on schedule and drilling is expected to take a further five months.
Heritage is considering a phased development of the Miran Field which involves early development by the end of 2013, targeting between 80 and 180 MMscfd of gas for local supplies and the production of between 10,000 and 15,000 barrels per day of oil and condensate.
Tony Buckingham, Chief Executive Officer, said: "We are delighted with the Miran West 3 test results which give us great comfort on the extent of the primary gas reservoir and demonstrates its producibility. We are focused on the monetisation of the world class Miran Field, targeting the phased development of the field with export of the gas to the booming Turkish market.
"The active work programme in Kurdistan continues with the drilling of the Miran East 1 well and the Miran West-4 oil appraisal well expected to spud later this quarter. We continue to pursue these programmes whilst also considering further value generating opportunities."
The firm's cash position at March 31st was around $154m, excluding amounts related to its Ugandan tax dispute.
NR
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