Forward Programme and Development
Results from drilling and initial indications from the 3D seismic programme indicate that there are pervasive fracture networks across the Miran structures. Future drilling plans will be designed to intersect these fracture networks in order to achieve optimal flow rates. Heritage is planning to accelerate the forward programme on the Miran West structure with an additional high-angle appraisal well, Miran West-3, expected to commence drilling in the second quarter of 2011. This will target the fracture systems on the flanks of the structure in the Lower Cretaceous and will take approximately 120 days to drill and complete. In addition, a second rig is being sourced to continue appraisal work on Miran West and subsequently to begin exploration drilling on Miran East. It is planned that the second rig will commence drilling in the autumn of 2011.
The 3D seismic programme, that is currently underway to acquire 550 square kilometres of data, is being expanded by a further 180 square kilometres due to the increased confidence provided by these well results. This extension to the programme is aimed at the southern flanks of both the Jurassic and Cretaceous structures. Preliminary 3D volumes will be analysed in up to four separate tranches to expedite our understanding of the structures. Initial samples indicate good quality data.
The location of the Miran Field in Kurdistan makes it ideally placed to gain access to secure and profitable European gas markets. Over the last two years a number of major gas companies, including OMV, MOL and RWE, have entered into agreements in Kurdistan with a view to creating a route to market for Kurdistan's major gas reserves.
Heritage is currently considering potential development options which could include either bringing gas into Turkey and/or into Europe via the Nabucco pipeline. The company is currently targeting first production in 2015.
Tony Buckingham, CEO, commented:
"The discovery of a major gas field of up to 12.3 TCF in-place with exceptional flow rates makes this one of the largest gas fields to be discovered in Iraq. This well has substantially de-riskedthe field so we have the confidence to accelerate the work programme on Miran. We are considering various development options including a tie-in to planned infrastructure that will achieve first production for both oil and gas in 2015. This discovery has the potential to generate substantial further value for our shareholders and benefit the people of Kurdistan and Iraq."
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