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CALGARY, Sept. 28 /CNW/ - Heritage Oil
Corporation (TSX: HOC) today announced that the Oil,
Gas and Petrochemical Establishment (OGE) of the
Government of the Autonomous Region of Kurdistan,
Iraq has entered into an exclusive Memorandum of
Understanding (MOU) with K Petroleum Company (KPC)
to undertake field studies over an area in
Kurdistan, Iraq adjacent to the Taq Taq oil field in
a region considered to be prospective for
hydrocarbons.
KPC is a wholly-owned subsidiary of Heritage Erbil
Oil Limited, which is a joint venture company
co-owned with Eagle Group, a major economic and
industrial entity within the Autonomous Region of
Kurdistan, Iraq. Heritage and Eagle Group each own
50% of Heritage Erbil.
Micael Gulbenkian, Chairman and CEO of Heritage,
said, "We are delighted that the Government of the
Autonomous Region of Kurdistan, Iraq has selected
KPC to undertake this field study in what is
considered to be one of its most prospective
exploration regions. Heritage and KPC view this
opportunity as the first step on what is anticipated
to be a long-term path for future collaborations
with the Government to develop hydrocarbon resources
in this territory."
The Taq Taq oil field, which is bordering the MOU
area, was initially drilled in 1960 and declared a
discovery with a second exploration well in 1978.
Two further appraisal and development wells were
drilled in the 1990s. IHS Energy, a well known and
reputable independent oil and gas consultancy,
estimates the field has reserves of 130 million
barrels of oil, based on which the Company
anticipates it should be capable of producing
approximately 60,000 barrels per day. The field is
currently producing approximately 3,600 barrels per
day of between 20 and 40 degree API crude oil. It is
understood from the data available that prospects
similar to the Taq Taq structure could be present in
the area covered by the MOU.
KPC will undertake the studies with the OGE
providing all available data, plus logistical
support and security. The scope of work includes
regional studies, geological field mapping, a
geochemical field survey and a gravity
survey.
KPC has established an office in Erbil staffed with
oil company personnel and preparatory work is
already underway. Visits to the field area have
confirmed no prevailing logistical issues and work
in the field is expected to commence shortly.
Negotiations to formalize the MOU into a Production
Sharing Agreement (PSA) are scheduled to commence
while the work program is being carried out. KPC is
confident these studies will translate into a PSA,
although there is no guarantee that a license will
be awarded to the Company.
About Heritage Oil Corporation
Heritage is an international oil and gas corporation
with producing properties in the Republic of Congo
and Sultanate of Oman, and exploration projects in
the Republic of Uganda. Through its subsidiary KPC,
the Company has entered into a MOU with the
Government of the Autonomous Region of Kurdistan,
Iraq. Heritage Middle East, which is focusing on
Iraq, has established an office in Amman, Jordan,
which it intends to re-locate to Baghdad when the
security situation permits.
The Company's Common Shares trade on the Toronto
Stock Exchange under the
symbol HOC.
If you would prefer to receive press releases via
email contact Heather Colpitts (heather@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. %SEDAR: 00010129E
For further information: please contact:
Investors Relations Contacts:
CHF Investor Relations, Cathy Hume, Tel (416)
868-1079 x231, Email
cathy@chfir.com; Olav Svela, Tel (416) 868-1079
x242, Email
olav@chfir.com; Heritage Oil Corporation,
Swiss/European Contact Details,
Micael Gulbenkian, Paul Atherton, Tel +41 91 980
3569 or +44 870 011 5555,
Fax +41 91 980 3570 or +44 20 7629 3863, Email info@heritageoilcorp.com;
Canadian Contact Details, John McLeod, Tel (403)
234-9974, Fax (403) 261-1941
www.newswire.ca
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