Attention Business Editors:
Heritage Oil awarded production sharing contract in Kurdistan Region of Iraq
/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 2 /CNW/ - Heritage Oil Corporation (TSX: HOC) ("Heritage"
or "the Company") today is pleased to announce that it has executed a
Production Sharing Contract with the Kurdistan Regional Government (KRG) over
Miran Block in the south-west of the Kurdistan Region of Iraq and that
Heritage will be operating as a 50/50 partner with the KRG to create a 20,000
barrel per day oil refinery in the vicinity of the licence area.
Under the terms of the agreement, Heritage Energy Middle East Limited, a
wholly owned subsidiary of Heritage, will serve as operator. Heritage will
join the existing and increasing presence of international oil exploration,
development and production companies operating in the Kurdistan Region of
Iraq.
The licence area is 1,015 square kilometres and encompasses the very
large Miran structure. This structure, as expressed at surface, constitutes an
area of approximately 500 square kilometres and appears to have three separate
culminations. Reservoir potential exists at numerous zones that management
estimate could contain in excess of 1 billion barrels of oil. Recent drilling
results have demonstrated the enormous potential of this region.
In addition, Heritage has also entered into a strategic agreement with
the KRG to establish a 50/50 joint venture company which shall build, own and
operate an oil refinery in the vicinity of the licence. The refinery, which
should have a capacity of 20,000 barrels of oil per day, is scheduled to be
operational to design specification within approximately two years. Heritage
is especially pleased to be part of this extremely exciting and profitable
project that will create value added petroleum products for the region and all
of Iraq.
Heritage will commence geological work immediately, having established
its local office in Erbil in 2005, and aims to commence a high-impact
exploration drilling program in 2008. Heritage has assembled a highly
experienced technical team with considerable experience of the regional
geology.
The total contractual financial commitment for the Miran Licence is
estimated to be less than US$40 million distributed over the first five year
term, which can be extended for a further two years thereafter. The
exploration licence will be automatically converted into a development licence
on a commercial discovery.
Mr. Tony Buckingham, CEO, stated:
"We are delighted to be among the first international companies to be
awarded a licence in the Kurdistan Region subsequent to the approval of the
Oil and Gas Law in August 2007. We consider this licence to be one of the most
prospective blocks in this until now under-explored region, with billion
barrel oil potential. This licence can become a world-class asset which would
generate significant additional shareholder value for Heritage. Our long-term
commitment to the oil industry and further economic development in the
Kurdistan Region is demonstrated further by our winning the right to build and
operate a refinery in the vicinity of the Miran licence in a joint venture
with the Kurdistan Regional Government."
- Notes to Editors: Heritage is an international oil and gas
corporation with a diversified portfolio of properties, including a
producing property in the Sultanate of Oman, a development property
in Russia and exploration projects in the Republic of Uganda, the
Democratic Republic of Congo and the Kurdistan Region of Iraq
- Heritage's management team has a proven track-record of finding new
large oil discoveries, including the new hydrocarbon system in Lake
Albert, Uganda and the M'Boundi field in the Republic of Congo
- A location map of the Miran licence is available on Heritage's
website at www.heritageoilcorp.com
If you would prefer to receive press releases via email contact Kelly
Cody (kelly@chfir.com) and specify "Heritage press releases" in the subject
line.
FORWARD-LOOKING STATEMENTS:
Except for statements of historical fact, all statements in this news
release - including, without limitation, statements regarding production
estimates and future plans and objectives of Heritage - are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results and
future events could differ materially from those anticipated in such
statements. Factors that could cause actual results to differ materially from
anticipated results include risks and uncertainties such as: risks relating to
estimates of reserves and recoveries; production and operating cost
assumptions; development risks and costs; the risk of commodity price
fluctuations; political and regulatory risks; and other risks and
uncertainties as disclosed under the heading "Risk Factors" in its AIF and
elsewhere in Heritage documents filed from time-to-time with the Toronto Stock
Exchange and other regulatory authorities. Further, any forward-looking
statement is made only as of a certain date and the Company undertakes no
obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which such statement is made or
reflect the occurrence of unanticipated events, except as may be required by
applicable securities laws. New factors emerge from time to time, and it is
not possible for management of the Company to predict all of these factors and
to assess in advance the impact of each such factor on the Company's business
or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking
statement.
%SEDAR: 00010129E
For further information: Investors Relations Contacts: CHF Investor Relations,
Cathy Hume, Tel: (416) 868-1079 x231, Email: cathy@chfir.com; Kelly Cody,
Tel: (416) 868-1079 x223, Email: kelly@chfir.com; Heritage Oil Corporation,
Tony Buckingham, Paul Atherton, Tel +41 91 973 1800, +44 870 011 5555, (403)
234 9974, Email info@heritageoilcorp.com
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