|
CALGARY,
Dec. 13 /CNW/ - Heritage Oil Corporation (TSX: HOC)
announced today that it has formed a strategic
alliance by way of a joint venture with Eagle Group
of Iraq, a major economic and industrial entity
within the Autonomous Region of Iraqi Kurdistan.
Heritage and Eagle Group have incorporated a jointly
owned company, Heritage Erbil Oil Limited ("Heritage
Erbil") with an authorized share capital of US$25
million dollars (Cdn$30 million). Heritage Erbil in
turn has incorporated K Petroleum Company ("KPC"), a
wholly owned subsidiary of Heritage Erbil, in Iraq
and registered KPC in both Baghdad and Erbil (in the
Autonomous Region of Kurdistan). Heritage and Eagle
Group shall each hold a 42.5% share interest in KPC,
while Turkish investors will hold the remaining 15%.
Micael Gulbenkian, Chairman and CEO of Heritage Oil
Corporation, said that "because of my family's
centuries-old links to Iraq and the region, I have
been able to visit Iraq regularly during the last
two years. My great grandfather and great uncle were
closely associated with the development of the
Middle East oil industry. In fact, the Gulbenkian
family was fundamentally involved with the
establishment of Iraq Petroleum Company in the 1920s
and the drilling of the first well in Kirkuk in
1927.
My father for decades since the 1950s was associated
with the development of the Iraqi Oil industry and,
by investing in numerous social and
development programs played a very important role in
the fields of education, health, arts and science
for the benefit of the Iraqi people. I have been
touched with the warm reception I have enjoyed
within Iraq in general and the Autonomous Region of
Kurdistan in particular.
As a result of my family's historical connections in
the area, this joint venture could have the ability
to transform Heritage Oil Corp. in the short to
medium term."
His Excellency Mr. Nechirvan Barzani, the Prime
Minister of the Regional Government of Kurdistan,
stated: "We are delighted that Eagle Group has
entered into this joint venture with Heritage. We
believe both parties are genuinely committed to the
development of oil and gas in the Region within a
framework of a close working relation with our
Regional Government and the Ministry of Oil in
Baghdad, utilizing available local resources.
The Company should be in a position to commence its
activities immediately in view of the stability
prevailing in the Region, which is far more stable
than other parts of Iraq. KPC in view of its
regional local strategy is ideally placed to obtain
licences, with the support of the central government
and ourselves, to operate fields in the North."
Heritage is responsible for the overall operation
and management of Heritage Erbil and KPC. We are
actively recruiting local technical staff to
commence a detailed investigation of the development
potential of the
Kurdistan Region.
KPC will be working in close collaboration with the Ministry of Oil of
Iraq. The company has been incorporated with the
knowledge and support of the Ministry. Discussions
have already commenced about awarding a license to
KPC containing proven reserves with the possibility
of early production.
It is anticipated that during this interim period
when there is an absence of hydrocarbon legislation
in country the licence might initially be a service
agreement, with a view to converting this into a
production sharing
contract. KPC, however, has a two-phase strategy:
(1) To target projects with significant proven
reserves with a plan
to produce over 50,000 barrels per day while
assessing further
known potential reserves in the Region; and
(2) To carry out initial technical and exploration
work over parts of
Northern Iraq which have yet to be explored.
The oil potential of Iraq is huge, with estimated
proven reserves of more than 112 billion barrels of
oil and 100 trillion cubic feet of natural gas. It
is reported that fields in Northern Iraq contain
estimated reserves of 36
billion barrels, and less than 10% of the Region has
been explored. His Excellency Mr. Nechirvan Barzani
and Micael Gulbenkian both stated during a meeting
in October this year: "We view KPC as an important
element in the oil and gas exploration and
development in the Northern Regions of Iraq."
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 Common Shares trade on the Toronto
Stock Exchange under the symbol HOC.
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.
http://www.newswire.ca
Top |
® 