Vast notes neighbour Heritage's oil discoveryVast notes neighbour Heritage's oil discovery
2009-05-06 12:26 ET - News Release
Mr. Ahmed Said reports
VAST EXPLORATION INC. - HIGHLIGHTS HERITAGE'S MAJOR OIL DISCOVERY ON BLOCK NEIGHBOURING VAST'S QARA DAGH BLOCK
Vast Exploration Inc. has noted Heritage Oil Ltd.'s news in Stockwatch on May 6, 2009, regarding a major oil discovery on its Miran West-1 well in the Kurdistan region of Iraq. The Qara Dagh block is directly adjacent to
Heritage's Miran block, which is directly to the north and northwest of the block.
In its press release, Heritage summarized the results of the Miran West-1 well as follows:
- Miran West structure estimated oil-in-place of between 2.3 billion to 4.2 billion barrels;
- Recovery factor expected to be between 50 per cent to 70 per cent due to the highly fractured nature of the reservoirs;
- From the pressure data recorded during testing management estimates flow rates of between 10,000 to 15,000 barrels of oil per day (bopd) per well;
- Miran West-1 well has an estimated gross oil-bearing interval of 710 metres;
- Oil produced during testing was medium gravity (approximately 27 degree American Petroleum Institute (API)), with low sulphur, a low gas-oil ratio and with no water;
- Miran West field development will be low cost and straightforward to fast-track;
- Potential for trucking production for sale by year-end 2009.
Vast and its partner Niko Resources Ltd. are currently conducting 2-D seismic survey on the Qara Dagh block which covers an area of approximately 846 square kilometres.
The first phase of the seismic survey on Qara Dagh block is under way and is concentrating on the northwest portion of the block which is closest to the Miran block. Vast is encouraged by the announcement of the presence of hydrocarbons over a significantly large interval including the three main proven reservoirs. Vast and its partners are anticipating targeting the same reservoirs, among others, for drilling its first exploration well.
Ahmed Said, president and chief executive officer of Vast Exploration, stated: "The major oil discovery by Heritage is a significant achievement and further proves the tremendous hydrocarbon potential of the underexplored Kurdistan region of Iraq. We look forward to completing the seismic program on our adjacent Qara Dagh block and identifying the first well location."