UK's Heritage Oil strikes it rich in Ugandan exploration block

14 January 2009

Heritage Oil Limited, an independent upstream exploration and production company, has announced a world-class oil discovery with the successful Giraffe-1 exploration well in Block 1 in the northern Ugandan district of Amuru, which also unlocks further potential in the Buffalo block.

London-listed Heritage said its 18th consecutive drilling success around Uganda's giant Lake Albert has confirmed structures running to billions of barrels of oil. The latest discovery could lead to recovery of an estimated 400 million barrels of oil around Lake Albert, the company said in a release.

The Giraffe-1 discovery has a gross oil-bearing interval of approximately 89 metres, with approximately 38 metres of net oil pay. It is also considered to be structurally connected to the Buffalo discovery, creating the Buffalo-Giraffe complex, the company said in a release.
 
The Buffalo-Giraffe complex has an area of approximately 48 sq km with an oil column of approximately 140 metres. Based on current mapping, the company estimates reserves for the Buffalo-Giraffe complex to be over 400 million barrels.

The Buffalo-Giraffe complex may extend further to the north and east and include the Buffalo East prospect, which could create one very large structure of up to 90 sq km, the company said in its release.

The Giraffe-1 exploration well was drilled to a total depth of 705 metres and was successfully logged. The well encountered a gross oil-bearing interval of approximately 89 metres with net oil pay of approximately 38 metres. Downhole pressure testing and sampling have confirmed the presence of movable oil that was recovered to surface and log interpretation indicates excellent reservoir quality with porosities of up to 30 per cent. The Giraffe-1 well has been suspended as a potential future production well.

Pressure and seismic data indicate that the Giraffe discovery is structurally connected to the Buffalo discovery announced in December 2008, creating a combined Buffalo-Giraffe complex covering approximately 48 sq km with an oil column of approximately 140 metres. Based on current mapping the company's initial estimate of reserves for the Buffalo-Giraffe complex is over 400 million barrels. The Buffalo-Giraffe complex may extend into the Buffalo East prospect creating one very large structure of up to 90 sq km.