Heritage Oil optimistic about new acreage in Tanzania

Upstream exploration and production firm Heritage Oil has been awarded further acreage in Tanzania through the Kyela production and sharing agreement (PSA).

The Kyela PSA has an area of 1,934 square kilometres but has never been previously targeted for hydrocarbon exploration.

However, Heritage remains optimistic: "gravity data over the area suggests the presence of a sedimentary section of sufficient thickness to allow for the generation of oil."

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Heritage has a 100% interest in the project and is the sole operator.

"Following on from the award of the Rukwa PSA last year we are pleased to have been awarded further acreage in a prospective East African rift basin in Tanzania which could share geological similarities to the Albert Basin of Uganda," said Chief Executive Officer Tony Buckingham.

"Our expertise, both technical and operational, on rift basins will provide Heritage with a key advantage in assessing the prospectivity of both new awards," he said.

Shares nudged 0.45% higher to 201.7p in early trading on Wednesday.

BC