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Heritage Oil wins production sharing contract in
Iraqi Kurdistan region
2.10.2007
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October
2, 2007
CALGARY - Heritage Oil Corp. (TSX:HOC), a
Calgary energy company with international
operations, has struck a production sharing contract
with the Kurdistan Regional Government in 'Iraq' and
plans to help build a refinery in the region.
Heritage said Monday it had agreed to a nearly US$40
million agreement on the Miran Block in the
southwest part of the Kurdistan region. Under deal,
Heritage will also operate as a 50-50 partner with
the regional government to create a 20,000 barrel
per day oil refinery near the licence area.
The licence area is 1,015 square kilometres and
encompasses the very large Miran oil structure, with
potential to contain more than one billion barrels
of oil. |
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In addition, Heritage has also entered into a
strategic agreement with the Kurdish government
under which the joint venture will build and operate
an oil refinery, which can process 20,000 barrels of
oil a day. The refinery should be operating within
two years.
Heritage said its financial commitment for the Miran
licence is estimated to be less than US$40 million
over the first five year term, which can be extended
for a further two years.
CEO Tony Buckingham said Heritage is among the first
international companies to be awarded a licence in
the Kurdistan region after a new energy law went
into effect in August.
"We consider this licence to be one of the most
prospective blocks in this until now under-explored
region, with billion barrel oil potential," he said.
"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."
Heritage is an international oil and gas company
with a diversified portfolio of properties,
including a producing property in Oman, a
development property in Russia and exploration
projects in Uganda, Congo and Kurdistan in Iraq.
In early trading Tuesday on the TSX Venture
Exchange, Heritage shares rose $2.05 to $49.65, a
gain of 4.3 per cent.
Canadian Press
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