Home
Shares in Heritage Oil have fallen more than 10% in the past two days following its announcement that drilling at Miran West-3 in Iraqi Kurdistan in taking longer than expected.
The company owns 75% of the block, with Genel Energy owning 25%. Shares in Genel have shed 14% since Friday’s close. CEO Tony Hayward commented:
“The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure – integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning.“
The full text of the Heritage announcement follows:
Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, provides an update on the Miran West-3 well in the Kurdistan Region of Iraq (“Kurdistan”).
Highlights
The well is currently at a depth of 2,910 metres
Testing and the results of wireline logging confirm the Lower Cretaceous reservoir formation is gas bearing
High pressure gas was encountered requiring a change in well design and the well being sidetracked. This high pressure interval has been drilled and is now being logged
Drilling will continue to the Jurassic targets below 3,000 metres
Heritage has completed well testing and wireline log evaluation of the Lower Cretaceous reservoir in the Miran West-3 well and is currently at a depth of 2,910 metres.
Testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface due to the lack of an extensive connected fracture network at this location. The results from detailed wireline log interpretation, observations whilst drilling and gas recovered at surface confirm that the Lower Cretaceous reservoir formation is gas bearing. Detailed work is being undertaken on the recently processed 3D seismic and offset well data to establish the areas of effective reservoir for this formation.
Below the Lower Cretaceous reservoir the well encountered a high pressure interval as well as a loss of circulation which resulted in the need to sidetrack the well. This interval has now successfully been drilled and the well is currently at a depth of 2,910 metres and being logged.
Further drilling will appraise the Jurassic reservoir intervals which were discovered by the Miran West-2 well. A number of tests are planned and drilling is expected to be completed within the next couple of months.
A second rig to drill the Miran East-1 well is on location and expected to commence drilling shortly.
Tony Buckingham, CEO, commented:
“The Miran West-3 well is providingfurther information on this large fractured carbonate structure to enable Heritage to better understand the reserves distribution in the field and confirm volumes for development planning. The degree of fracturing and high pressure encountered in these deeper intervals have meant that the drilling programme is taking longer than expected, but nevertheless, the data being obtained is vindicating our approach in drilling this deviated well.“
[You must be registered and logged in to see this link.]
The company owns 75% of the block, with Genel Energy owning 25%. Shares in Genel have shed 14% since Friday’s close. CEO Tony Hayward commented:
“The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure – integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning.“
The full text of the Heritage announcement follows:
Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, provides an update on the Miran West-3 well in the Kurdistan Region of Iraq (“Kurdistan”).
Highlights
The well is currently at a depth of 2,910 metres
Testing and the results of wireline logging confirm the Lower Cretaceous reservoir formation is gas bearing
High pressure gas was encountered requiring a change in well design and the well being sidetracked. This high pressure interval has been drilled and is now being logged
Drilling will continue to the Jurassic targets below 3,000 metres
Heritage has completed well testing and wireline log evaluation of the Lower Cretaceous reservoir in the Miran West-3 well and is currently at a depth of 2,910 metres.
Testing in the Lower Cretaceous formation resulted in no measurable flow of hydrocarbons to surface due to the lack of an extensive connected fracture network at this location. The results from detailed wireline log interpretation, observations whilst drilling and gas recovered at surface confirm that the Lower Cretaceous reservoir formation is gas bearing. Detailed work is being undertaken on the recently processed 3D seismic and offset well data to establish the areas of effective reservoir for this formation.
Below the Lower Cretaceous reservoir the well encountered a high pressure interval as well as a loss of circulation which resulted in the need to sidetrack the well. This interval has now successfully been drilled and the well is currently at a depth of 2,910 metres and being logged.
Further drilling will appraise the Jurassic reservoir intervals which were discovered by the Miran West-2 well. A number of tests are planned and drilling is expected to be completed within the next couple of months.
A second rig to drill the Miran East-1 well is on location and expected to commence drilling shortly.
Tony Buckingham, CEO, commented:
“The Miran West-3 well is providingfurther information on this large fractured carbonate structure to enable Heritage to better understand the reserves distribution in the field and confirm volumes for development planning. The degree of fracturing and high pressure encountered in these deeper intervals have meant that the drilling programme is taking longer than expected, but nevertheless, the data being obtained is vindicating our approach in drilling this deviated well.“
[You must be registered and logged in to see this link.]
