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CALGARY, Aug. 6 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent upstream exploration and production company, is pleased to provide an update on encouraging drilling activities in Uganda.

Highlights
-   Excellent results from Tullow Oil's Kasamene-1 well in Block 2,
    substantially lowers the exploration risks in Heritage's Block 1
-   Structural trends can be traced from Kasamene-1 well (Block 2) to
    Warthog, Giraffe and Buffalo prospects (Block 1). Drilling programme
    to commence shortly
-   Potential for Warthog prospect to be part of the same structure as
    Kasamene
-   Kingfisher-2 well in Block 3A to production test reservoirs in August

Upcoming Heritage Drilling Activity in Block 1, Albert Basin, Uganda

Heritage is planning an active drilling campaign in Block 1 that is expected to commence next month on the Buffalo, Giraffe and Warthog prospects. The excellent drilling results from the Kasamene-1 well (as announced by Tullow Oil plc to the London Stock Exchange today and referenced below), significantly lowers the exploration risk of these and other prospects in Block 1.

Kasamene-1 is located approximately 2.5 kilometres from Block 1, and appears to have been drilled on a structural trend characterised by encouraging seismic amplitude anomalies. This trend can be traced northwards from the Kasamene discovery through the Warthog, Giraffe and Buffalo prospects.

Both the Buffalo and Giraffe prospects were independently assessed by RPS Energy as at 30 September 2007 to have mean gross un-risked prospective resources of 420 and 89 million barrels of oil respectively. The Warthog prospect is located approximately 5.5 kilometres north of the Kasamene well, with the crest and the greater part of the structure being located within Block 1. The Warthog and Kasamene prospects may not be just related structures on trend with one another, but could also be part of the same structure.

Production Test of Kingfisher-2 Well, Block 3A, Albert Basin, Uganda

This deviated appraisal well has been drilled to a total depth of 3,906 metres, (3,197 metres true vertical depth). Heritage will be testing three zones, which based on a preliminary evaluation of wireline log data, have an estimated net thickness of 37 metres over a gross interval of approximately 100 metres. These three zones appear equivalent to the Upper Miocene discoveries in the Kingfisher-1 well.

In the deeper section the well penetrated the targeted basal sands comprising approximately 30 metres of reservoir overlain by a good potential shale top-seal.