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CALGARY, Sept. 3 /CNW/ - Heritage Oil Limited (LSE: HOIL), an independent
upstream exploration and production company, announces successful tests of all
three reservoir intervals in the Kingfisher-2 well in Block 3A, Uganda.
Highlights
-   Three reservoirs produced at a cumulative flow rate of 14,364 bopd.
    Rates were constrained by surface test equipment
-   Record test production from any well in Uganda
-   Upgrade to Kingfisher potential oil reserves expected
-   Rig to be moved to drill Kingfisher-3 in Block 3, Uganda, in
    September 2008
-   Multi-well drilling programme to commence in Block 1, Uganda, in
    September 2008
Kingfisher-2, Block 3A, Uganda, Test Results
Three reservoirs with a cumulative vertical net pay of approximately 
37 metres between 2,654 metres and 2,783 metres measured depth produced at a
cumulative flow rate of 14,364 bopd on test as follows:
Drill Stem Test     Gross Measured     Maximum     Oil Quality    Choke
                    Depth Interval    Flow Rate
                      Thickness
     (DST)             (metres)        (bopd)         (API)      (inches)
       1                 20.2           5,178          29.7      48/64th
       2                 26.5           4,798          30.5      64/64th
       3                 12.0           4,388          32.0      48/64th
                 ----------------------------------
                         58.7          14,364

The higher rates recorded from all three test intervals were constrained by the surface test equipment. It appears that these three zones are equivalent to the same three intervals tested in the Kingfisher-1 well, which flowed at a combined rate of 9,773 bopd. Pressure data recorded from the DST-1 and DST-2 intervals indicate that the two lowermost sands are possibly in vertical communication and therefore could comprise the same reservoir. This could potentially lead to higher oil volumes.

The oil is good quality, of light to medium gravity and sweet, with a low gas-oil ratio and some associated wax. The reservoirs are highly permeable sandstones, with an estimated permeability from DST-1 of 2,250 milliDarcies.

It is likely that there will be an upgrade to potential oil reserves following drilling of the Kingfisher-2 well.