Shares in Heritage Oil closed down 1.9 percent on Thursday, following the company's interim management statement.
The companay gave the following update on its operations in Iraqi Kurdistan:
Following the Initial Sale, HEME currently holds a 49% interest in the Miran Block and continues to act as operator.
Initial work-over operations to prepare the Miran West-1 well for completion took place during September 2012. It is anticipated that the extended well test will begin in December 2012 and will last for a maximum period of six months. The resulting planned production of 3,000 to 5,000 barrels of oil gross per day will be sold into the local market in Kurdistan.
The Miran East-1 exploration well is the first well to be drilled on the Eastern structure, which is contiguous with the large hydrocarbon-bearing Western structure. The well commenced drilling in March 2012, targeting exploration potential within the Cretaceous and Jurassic intervals. As at 14 November 2012, the well has reached a depth of 4,850 metres and evaluation of the well is ongoing. The Upper Cretaceous reservoir interval has been shown to be in pressure communication with the Western structure and shows observed whilst drilling the Lower Cretaceous section are consistent with wireline log interpretation indicating the presence of hydrocarbons. Well operations are ongoing and expected to take up to six weeks.
Tony Buckingham (pictured), Chief Executive Officer, commented:
"It has been an exciting time for Heritage Oil as we have completed a significant acquisition providing the Company with cash generating assets and a substantial increase in our reserves and production outlook.
"Our interest in Nigeria provides a new direction for the Company and a larger foundation upon which we can build. The current management team has been very successful in value creation for Heritage, generating cash of over $2 billion from asset sales in the last decade.
"We look forward to completing the proposed divestment of the Miran asset and focusing on opportunities to expand our portfolio."
(Sources: Heritage, Yahoo)