On completion of the drilling of the Miran West-4 well, Heritage plans to undertake an extended well test of these oil bearing reservoirs for a minimum period of six months which is expected to commence before year end. It is planned that up to 5,000 barrels of oil gross per day will be sold into the local market in Kurdistan.
In March 2012, Heritage announced that drilling of the Miran East-1 exploration well had commenced, with an estimated target depth of c.4,000 metres. The well is targeting exploration potential within the Cretaceous and Jurassic reservoir intervals of the eastern structure. The well is currently drilling to the Lower Cretaceous reservoir and primary Jurassic targets and is on schedule to reach target depth in four months.
Monetisation and Development of the Miran Field
Heritage is considering a phased development of the Miran Field which involves early development by the end of 2013, targeting between 80 and 180 MMscfd of gas for local supplies and the production of between 10,000 and 15,000 bpd of oil and condensate. Full field development should comprise an integrated development of the oil, gas and condensate with export of the gas production to Turkey estimated to commence in 2015. A feasibility study has been commissioned to consider building a gas pipeline to the border with Turkey, which is c.320 km away.
Work on conceptual development studies, gas marketing plans and strategies continues. Heritage is in discussions with the Kurdistan Regional Government, gas buyers and contractors regarding both early and full field development. This includes the export of the gas to Turkey where gas demand is increasing significantly and where average gas commodity prices are attractive.
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