Hertiage Oil

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Our Operations

Heritage typically focuses on regions which may have been overlooked and where it can participate as an early entrant. 


 

  • Russia

  • Nigeria

  • Malta

  • Libya

  • Tanzania

  • Papua New Guinea

  • Ghana

  • Russia

    Since 2005, the Group has held a 95% equity interest in ChumpassNefteDobycha Limited, a Russian company whose sole asset is a 100% interest in the Zapadno Chumpasskoye licence.

    Russia Maplegends

    Russia

    The Zapadno Chumpasskoye licence is in the hydrocarbon-rich West Siberian province of Khanty-Mansiysk, approximately 100 kilometres from the city of Nizhnevartovsk and in the area of the region’s prolific Samotlor oilfield, which makes it accessible to existing infrastructure. The licence contains the Zapadno Chumpasskoye Field, discovered in 1997. A total of 13 wells have been drilled on the licence including four by the Group. The Chumpasskoye crude is light, sweet (42° API) oil, with moderate gas-to-oil ratios.

    Since 2006, the Group has acquired 2D seismic data covering an area of 200 kilometres, constructed pilot production facilities, commenced field production, drilled four wells and re-entered existing well 226. Production facilities were commissioned and production commenced in May 2007. A fracture stimulation was completed on well P3, well P2 was converted to an injector for water disposal and pressure maintenance, a water shut-off completed on well P4 and ESPs installed on all producers to arrest the natural production decline. Based on positive results from the horizontal well (well 363) drilled in August 2011, a revised field development plan was submitted for Zapadno Chumpasskoye replacing vertical producers with horizontal wells. The change in well type should result in a 50% reduction in the number of production wells required to develop the field and a corresponding reduction in drilling expenditure of approximately $200 million. The development proposal was approved by regulatory authorities at the end of December 2012. Preparations continue for further development drilling in 2014/2015.

    Production averaged 577 bopd for the year, a decrease of 5% year-on-year due to natural well decline and a temporary mechanical issue in 2013 that was resolved later that year.

    INDEPENDENTLY ESTIMATED RESERVES AT THE ZAPADNO CHUMPASSKOYE FIELD1

     

    Net working and
    entitlement
    reserves
    MMbbls

    Net present
    value
    ($ million
    in money
    of the day)

    Proved 23 152

    Probable
    Additional

    42 284
    Total Proved
    + Probable
    65 336

    Total Proved +
    Probable +
    Possible
    163 976

    1 A summary of RPS’s net working interest reserves and their Net Present Value, based on forecast prices and costs, discounted at 10%, as of 31 March 2012.

  • Nigeria

    OML 30 is a world class asset with gross 2P oil reserves of over 1.1 billion barrels.

    Nigeria Maplegends

    Nigeria

    Gross production from OML 30 has reached over 50,000 bopd, in part from the benefit of continued maintenance and rehabilitation programmes. As a result of successful community relations programmes, production from the Uzere West Field recommenced in December 2013 after having been shut-in for over two years. In 2013, average production net to Heritage was 8,919 bopd at an average realised price of $114.70/bbl for total net revenues of $423 million. These revenues include November and December 2012 production sold in 2013. Production in Q4 2013 averaged c.13,300 bopd net to Heritage, 63% higher than the average of c.8,150 bopd for the first nine months of the year.

    The development of OML 30 remains the priority for the Company. All existing facilities have been reviewed to identify opportunities for improvement and maintenance. A number of comprehensive operational, engineering and community projects that commenced in 2013 are generating and contributing to significant production increases.

    Gas lift is the method of artificial lift within OML 30 and six of the eight fields have gas lift installed, with the two remaining fields planned to have gas lift installed within the next two years. Work on the gas lift systems continues and the installation of new gas lift compressors procured in 2013 is nearing completion. A further five new gas compressors have been ordered to be installed later this year. In addition, replacement of gas lift engines for the existing compressors, installation of diesel generators and replacement of the instrument air compressors is in progress.

    Wellhead maintenance has been completed on wells throughout the licence in preparation of flow line and gas line repairs. An extensive list of well optimisation activities continues to be refined. Over the course of this year work will continue aimed at further optimisation of the existing wells and facilities.

    The drilling of new wells, planned to commence in the second half of 2014, should provide a significant increase to production with the longer term potential estimated at approximately 300,000 bopd gross.

    OML 30 lies onshore within the Niger Delta in one of the most prolific oil and gas provinces in the world. The licence covers 1,097 square kilometres and includes eight producing fields with oil and gas contained in numerous stacked reservoirs. The fields are deltaic shallow marine shelf sands at intermediate depth. The fields each contain up to 40 stacked reservoirs and the reservoirs are underlain by substantial aquifers that provide nearly infinite pressure support. The oil is good quality 30° API and typically sells at over a 2% premium to Brent.

    Since 1961 over 200 wells have been drilled on the licence and the strong aquifer support has enabled the majority of these to be producers. There is the potential to both stabilise and increase production in the near term through refurbishing infrastructure and restarting non-producing existing wells. Additionally, existing wells will be worked over to further increase production.

    The licence benefits from infrastructure being in place with nine flow stations that have the capacity to handle 395,000 bpd thereby allowing for the projected production growth. The facilities have been robustly designed and constructed, and benefit from a standard design so equipment can easily be replaced if required.

    The OML 30 acquisition included a 45% interest in the segment of the TFP that transports liquids from OML 30 to the Forcados Terminal. The 97 kilometre long pipeline is 26 inch in diameter and largely buried along most of its length. It has a capacity of 850,000 bpd. The TFP is used by several other operators and provides additional revenue for OML 30 through the tariffs charged. Maintenance and construction work was also undertaken on the Trans Forcados Pipeline (“TFP”) to complete work that was initiated by the previous operator but delayed due to the prolonged sales process.

    In Nigeria, engagement with local communities is fundamental to driving an improved performance from the licence and in generating shared wealth to all stakeholders. To this extent, a not for profit Non-Government Organisation (“NGO”), registered and working in Nigeria and West Africa for over 20 years, was engaged to work with the National Petroleum Development Company, the operator, and Shoreline to ensure a cohesive approach to community issues. Conclusions from extensive consultations with communities within the OML 30 licence area allowed Shoreline to gain an understanding of the fundamental issues of concern arising from activities in the area. This enabled Shoreline to engage accordingly in the interest of the impacted communities as well as helping to restore and build an environment such that all can benefit.

    In December 2012, Heritage announced that Shoreline Power had exercised its call option to acquire a 30% economic interest in Shoreline. Completion of the transaction is expected imminently, following which Heritage will have an effective working interest in OML 30 of 30.71%. On completion, Heritage will receive cash of $31.5 million and the balance will be provided by way of an interest bearing, secured loan from Heritage to Shoreline Power.

    In November 2013, Heritage announced that a wholly owned subsidiary has entered into a joint venture agreement with Bayelsa Oil Company, owned by the Bayelsa State government and another Nigerian company, to establish an indigenous Nigerian oil company called Petrobay. Heritage has a 45% equity interest in Petrobay which combines Bayelsa Oil Company’s indigenous support from state government and Heritage’s strong technical and financial capability.

    A number of upstream assets in the state of Bayelsa and the larger Niger Delta region have been identified and Petrobay will engage in both bilateral and competitive auction processes to acquire these assets. Petrobay will look to enable Heritage to build upon its current interests in Nigeria, which is Africa’s largest oil producer and contains the second largest oil reserves in the continent.

    OML 30 – SUMMARY Of RESERVES(1,2)

      Gross Remaining Reserves  Heritage Group Net
    Entitlement Reserves 
      Gross of Royalty (mmstb) Net of Royalty (mmstb) Gross of
    Royalty (mmstb)
    Net of
    Royalty (mmstb)
    Proved
    Reserves (1P)
    538 430 168 134

    Proved &

    Probable
    Reserves (2P)

    1,114 891 347 277
    Proved &
    Probable & Possible
    Reserves (3P)
    1,733 1,387  539 431

    1 Post exercise of Shoreline Power option.
    2 As per RPS, as at 31 March 2012.

  • Malta

    The Group holds a PSC with the Maltese government for a 100% interest in Areas 2 and 7 in the south-eastern offshore region of Malta.

    Malta Maplegends

    Malta

    The Maltese licences cover almost 18,000 square kilometres and are situated approximately 80 kilometres (Area 2) and 140 kilometres (Area 7) offshore, in water depths of up to approximately 300 metres. The two Areas are close to, and geologically similar to, a number of producing fields offshore Libya and Tunisia.

    With only one well previously drilled in Area 2, the Medina Bank-1 well in 1980 which did not reach its target, both licences are considered to be under explored. Although drilled to a depth of 1,225 metres, the well failed to reach the objective horizons, estimated to be between 1,500 and 4,500 metres.

    The interpretation of seismic data in Heritage’s extensive dataset of approximately 5,000 kilometres of 2D seismic, has confirmed a highly attractive Lower Eocene carbonate reef play. Detailed mapping of the primary prospect (Caravaggio) in Area 7 has also identified the presence of an additional deeper carbonate reef target within the Cretaceous section of the structure. These reefal targets are recognised as major hydrocarbon producing zones in the central part of the Mediterranean and several additional prospects and leads associated with possible reefs have been identified within the licenced area.

    The Caravaggio prospect within Block 7 has been fully mapped with initial well planning, and is drill ready subject to Maltese government approval.

    Area 2

    Area 
    (sq km)

    Date 
    Awarded

    Heritage
    Equity

    9,190 December 2007 100%

    Area 7

    Area 
    (sq km)

    Date 
    Awarded

    Heritage
    Equity

    8,778 December 2007 100%
  • Libya

    HERITAGE has been active in pursuing opportunities in Libya since 2011 and is well positioned to develop these once the political situation in country stabilises.

    Libya Maplegends

    Libya

    Heritage has pursued its strategy of “first mover advantage” through seeking participation in the restoration of the Libyan oil production sector which presents a dynamic and evolving environment.

    Libya, which has the largest proven hydrocarbon reserves in Africa, is considered to be a highly attractive oil province due to the low cost of oil recovery, high quality oil which is generally sweet with API gravity ranging between 32–44º, proximity to European markets and well developed infrastructure.

    Heritage first established a base in Benghazi in the first half of 2011, having been in discussions with senior members of the National Transitional Council, the legitimate and recognised government of Libya at the time, as well as with its Executive Committee, the NOC and certain subsidiaries. The dialogue with parties across the whole country that would enable Heritage to participate in the rehabilitation of Libya’s hydrocarbons sector is ongoing.

  • Tanzania

    Heritage has two licences in Tanzania that are considered to be geologically analogous to the Lake Albert Basin in Uganda.

    Tanzania Maplegends

    Tanzania

    RUKWA SOUTH

    In November 2011, Heritage announced the award of a PSA within the Rukwa Rift Basin, and after targeted relinquishment Heritage has retained an area within South Rukwa that contains all identified prospectivity. Heritage is the operator with a 100% interest.

    Earlier exploration activity within the Rift Basin was conducted by Amoco in the mid-1980s with the acquisition of c.2,300 kilometres of 2D seismic data and the drilling of two wells. Heritage completed reprocessing of the legacy 2D seismic data and additional well data studies in 2012/13, and proceeded with the acquisition / processing of c. 600 kilometres of 2D (OBC and land) seismic infilling the legacy data and targeting the basin margin.

    Mapping of these data have identified multiple prospects, located along the northern lake margin that are reachable with land based operations. The largest prospect, Rukwa-A with c. 200MMbbl resource potential is considered drill ready. 

    KYELA

    In January 2012, Heritage was awarded the Kyela covering the entire northern onshore area of the Lake Nyasa (Livingstone) Basin that lies within Tanzanian territory. Heritage is the operator with a 100% interest.

    The Block has never previously been targeted for hydrocarbon exploration and Heritage commenced the work programme with the acquisition of a c.1,500 square kilometre of very high resolution gravity survey (FTG), followed by a 100 kilometre reconnaissance 2D seismic survey, positioned utilising the gravity data results. Integration of all data and 3D gravity inversion modelling confirms the presence of tilted fault blocks and structural highs, in close proximity to a depocentre with sufficient sedimentary section and depth of burial for potential source intervals to generate liquid hydrocarbon.

    The exploration programme continued with the collection of a high resolution geochemical survey over the licence area and the reprocessing of existing seismic. Results of this work have further complemented and enhance the prospectivity of the licence, and the forward plan is to acquire a focused infill 2D seismic programme for prospect delineation.

    Satellite radar surveys indicate areas of wave-calming in both Lake Rukwa and in Lake Nyasa that may be associated with oil seeps. In the event of an oil discovery, at either Rukwa or Kyela, economic scoping shows the commercial viability of either rail export to Dar es Salaam or export by pipeline depending on exploration success. Heritage recognises that the Rukwa and Kyela licences share certain geological similarities with the prolific Albert Basin of Uganda where Heritage had previous experience and significant success.

     

    Blocks Area (SQ KM) Date Awarded Heritage Equity Partners Operator
    Rukwa South 4,395 October 2011 100% - Heritage
    Kyela 1,934 January 2012 100% - Heritage
  • Papua New Guinea

    In 2013 Heritage expanded its portfolio into onshore Papua New Guinea ("PNG") through the farm-in. 

    Png Maplegends

    PNG

     

    PPL 319/PRL 13

    In April 2013, Heritage announced the farm-in to Petroleum PPL 319 and PRL 13. Heritage now retains a 40% working interest in both licences through payment of a $4 million contribution to back costs and by funding and acquiring c. 233 kilometres of 2D seismic across both licences. The contiguous licences are located onshore at the junction of the Papuan fold belt and the Miocene carbonate platform where there are producing fields and discoveries including the multi-TCF Triceratops and Elk/Antelope gas discoveries.

    The licences benefit from being close to current infrastructure with, Kopi base the logistics hub for Exxon and Oil Search’s development activities located within PPL 486; the Kutubu oil export pipeline and the PNG Liquefied Natural Gas pipeline crossing the acreage. The licences also benefit from the navigable Kikori River which provides a link to the open sea, with load capacity options c. 900 tonnes thereby providing significant additional transport options.

    Interpretation of new and legacy seismic/high resolution Gravity/magnetic data has identified significant oil and gas potential within the two prospects and six leads mapped. Of the prospects identified the Tuyuwopi prospect is a drill ready, four way dip closed drape structure, with simple faulting, on a direct migration path from a known Jurassic source kitchen. The demonstrated absence of late-stage structural movement increases the probability that the initial oil charge will have been preserved. 

    PPL 437

    In October 2013, Heritage announced the farm-in to PPL 437.  Heritage now has a 42.5% working interest in the licences through payment of a $300,000 contribution to back costs; by funding and operating the acquisition of c.104 kilometres of 2D seismic and by taking on our proportion of previous licence participants working interest in the licence. 

    PPL 437 lies within a proven hydrocarbon system less than 20 kilometres north of the Elevala and Ketu c.1.0 TCF gas condensate fields and the recent Tingu-1 discovery well. Legacy datasets, which include regional gravity/magnetic data; surface geological mapping, and c.812 kilometres of reprocessed 2D seismic have been evaluated, in conjunction with the new 2D seismic data. Interpretation of this extensive dataset has identified significant gas and associated liquid potential within the drill ready Malisa prospect and five leads mapped.

    The licence is located close to existing and planned infrastructure; with gas pipelines from PNG LNG’s gas fields to the LNG plant in Port Moresby and gas commercialisation options for the Elevala and Ketu fields that include a mid-scale LNG project with a LNG plant to be located at Daru.

     Blocks

    Area 
    (sq km)

    Date 
    Farm-in

    Heritage
    Equity1

    Partners

    Operator

    PPL 319 2,025 April 2013 40% Esrey Energy Esrey

    PRL 13

    160 April 2013 40% Esrey Energy Esrey

    PPL 437

    1,530 October 2013 42.5%

    Kina Petroleum

    Kina Petroleum

    1 Heritage will earn its equity by funding minimum work programmes.

  • Ghana

    IN JULY 2014 HERITAGE EXPANDED ITS PORFOLIO AND WAS AWARDED TWO HIGH IMPACT EXPLORATION LICENCES IN OFFSHORE GHANA. THE AWARDS PROVIDE THE OPPORTUNITY TO EXPLORE A WELL-KNOWN HYDROCARBON REGION.

    Ghana Maplegends

    Ghana

    Offshore South West Tano Block

    In July 2014, Heritage obtained a 39.6% interest in the Offshore South West Tano Block, which covers a gross area of approximately 175 square kilometres. The Petroleum Agreement was successfully ratified by the Government of Ghana in Parliament on 18 July 2014.

    The South West Tano Block is offshore deep water acreage, situated within the multiple fan and channel systems of the proven Cretaceous play fairway with water depths ranging from 1,000 to 2,750 metres.

    The Block is located adjacent to the producing Jubilee Block, which has the entire necessary infrastructure and could be utilised for any discovered hydrocarbons. Similarly, the Tweneboa-Enyenra-Ntomme approved development lies c.20 kilometres to west.

    The work programme has commenced and detailed mapping within the licence area has identified multiple prospective Upper and lower Cretaceous leads. Heritage is working closely with its partners, Blue Star Exploration Ghana Limited and GNPC Exploration and Production Company Limited (ExplorCo) to advance a number of these leads to prospect status.

    East Keta Block

    In July 2014, Heritage obtained a 38.7% interest in the offshore ultra-deep water East Keta Block, which covers a gross area of approximately 2,239 square kilometres.

    The East Keta Block is a frontier exploration licence located approximately 100 kilometres from the coast of Ghana with water depths ranging from c. 2,500 to 3,500 metres.

    The work programme has commenced and initial mapping within the licence area has identified prospective Cretaceous and Miocene aged fans and channels. Heritage is working closely with its partners, Blue Star Exploration Ghana Limited and GNPC Exploration and Production Company Limited (ExplorCo) with the start of planning for a 3D seismic acquisition programme within the licence.

     

    Blocks Area (SQ KM) Date Awarded Heritage equity Partner Operator
    Offshore South West Tano 175 18 July 2014 39.6% Blue Star Exploration Ghana Limited Joint Operating Company
    East Keta 2,239 18 July 2014 38.7% Blue Star Exploration Ghana Limited Joint Operating Company

Russia

Since 2005, the Group has held a 95% equity interest in ChumpassNefteDobycha Limited, a Russian company whose sole asset is a 100% interest in the Zapadno Chumpasskoye licence.

Russia Maplegends

Russia

The Zapadno Chumpasskoye licence is in the hydrocarbon-rich West Siberian province of Khanty-Mansiysk, approximately 100 kilometres from the city of Nizhnevartovsk and in the area of the region’s prolific Samotlor oilfield, which makes it accessible to existing infrastructure. The licence contains the Zapadno Chumpasskoye Field, discovered in 1997. A total of 13 wells have been drilled on the licence including four by the Group. The Chumpasskoye crude is light, sweet (42° API) oil, with moderate gas-to-oil ratios.

Since 2006, the Group has acquired 2D seismic data covering an area of 200 kilometres, constructed pilot production facilities, commenced field production, drilled four wells and re-entered existing well 226. Production facilities were commissioned and production commenced in May 2007. A fracture stimulation was completed on well P3, well P2 was converted to an injector for water disposal and pressure maintenance, a water shut-off completed on well P4 and ESPs installed on all producers to arrest the natural production decline. Based on positive results from the horizontal well (well 363) drilled in August 2011, a revised field development plan was submitted for Zapadno Chumpasskoye replacing vertical producers with horizontal wells. The change in well type should result in a 50% reduction in the number of production wells required to develop the field and a corresponding reduction in drilling expenditure of approximately $200 million. The development proposal was approved by regulatory authorities at the end of December 2012. Preparations continue for further development drilling in 2014/2015.

Production averaged 577 bopd for the year, a decrease of 5% year-on-year due to natural well decline and a temporary mechanical issue in 2013 that was resolved later that year.

INDEPENDENTLY ESTIMATED RESERVES AT THE ZAPADNO CHUMPASSKOYE FIELD1

 

Net working and
entitlement
reserves
MMbbls

Net present
value
($ million
in money
of the day)

Proved 23 152

Probable
Additional

42 284
Total Proved
+ Probable
65 336

Total Proved +
Probable +
Possible
163 976

1 A summary of RPS’s net working interest reserves and their Net Present Value, based on forecast prices and costs, discounted at 10%, as of 31 March 2012.

Nigeria

OML 30 is a world class asset with gross 2P oil reserves of over 1.1 billion barrels.

Nigeria Maplegends

Nigeria

Gross production from OML 30 has reached over 50,000 bopd, in part from the benefit of continued maintenance and rehabilitation programmes. As a result of successful community relations programmes, production from the Uzere West Field recommenced in December 2013 after having been shut-in for over two years. In 2013, average production net to Heritage was 8,919 bopd at an average realised price of $114.70/bbl for total net revenues of $423 million. These revenues include November and December 2012 production sold in 2013. Production in Q4 2013 averaged c.13,300 bopd net to Heritage, 63% higher than the average of c.8,150 bopd for the first nine months of the year.

The development of OML 30 remains the priority for the Company. All existing facilities have been reviewed to identify opportunities for improvement and maintenance. A number of comprehensive operational, engineering and community projects that commenced in 2013 are generating and contributing to significant production increases.

Gas lift is the method of artificial lift within OML 30 and six of the eight fields have gas lift installed, with the two remaining fields planned to have gas lift installed within the next two years. Work on the gas lift systems continues and the installation of new gas lift compressors procured in 2013 is nearing completion. A further five new gas compressors have been ordered to be installed later this year. In addition, replacement of gas lift engines for the existing compressors, installation of diesel generators and replacement of the instrument air compressors is in progress.

Wellhead maintenance has been completed on wells throughout the licence in preparation of flow line and gas line repairs. An extensive list of well optimisation activities continues to be refined. Over the course of this year work will continue aimed at further optimisation of the existing wells and facilities.

The drilling of new wells, planned to commence in the second half of 2014, should provide a significant increase to production with the longer term potential estimated at approximately 300,000 bopd gross.

OML 30 lies onshore within the Niger Delta in one of the most prolific oil and gas provinces in the world. The licence covers 1,097 square kilometres and includes eight producing fields with oil and gas contained in numerous stacked reservoirs. The fields are deltaic shallow marine shelf sands at intermediate depth. The fields each contain up to 40 stacked reservoirs and the reservoirs are underlain by substantial aquifers that provide nearly infinite pressure support. The oil is good quality 30° API and typically sells at over a 2% premium to Brent.

Since 1961 over 200 wells have been drilled on the licence and the strong aquifer support has enabled the majority of these to be producers. There is the potential to both stabilise and increase production in the near term through refurbishing infrastructure and restarting non-producing existing wells. Additionally, existing wells will be worked over to further increase production.

The licence benefits from infrastructure being in place with nine flow stations that have the capacity to handle 395,000 bpd thereby allowing for the projected production growth. The facilities have been robustly designed and constructed, and benefit from a standard design so equipment can easily be replaced if required.

The OML 30 acquisition included a 45% interest in the segment of the TFP that transports liquids from OML 30 to the Forcados Terminal. The 97 kilometre long pipeline is 26 inch in diameter and largely buried along most of its length. It has a capacity of 850,000 bpd. The TFP is used by several other operators and provides additional revenue for OML 30 through the tariffs charged. Maintenance and construction work was also undertaken on the Trans Forcados Pipeline (“TFP”) to complete work that was initiated by the previous operator but delayed due to the prolonged sales process.

In Nigeria, engagement with local communities is fundamental to driving an improved performance from the licence and in generating shared wealth to all stakeholders. To this extent, a not for profit Non-Government Organisation (“NGO”), registered and working in Nigeria and West Africa for over 20 years, was engaged to work with the National Petroleum Development Company, the operator, and Shoreline to ensure a cohesive approach to community issues. Conclusions from extensive consultations with communities within the OML 30 licence area allowed Shoreline to gain an understanding of the fundamental issues of concern arising from activities in the area. This enabled Shoreline to engage accordingly in the interest of the impacted communities as well as helping to restore and build an environment such that all can benefit.

In December 2012, Heritage announced that Shoreline Power had exercised its call option to acquire a 30% economic interest in Shoreline. Completion of the transaction is expected imminently, following which Heritage will have an effective working interest in OML 30 of 30.71%. On completion, Heritage will receive cash of $31.5 million and the balance will be provided by way of an interest bearing, secured loan from Heritage to Shoreline Power.

In November 2013, Heritage announced that a wholly owned subsidiary has entered into a joint venture agreement with Bayelsa Oil Company, owned by the Bayelsa State government and another Nigerian company, to establish an indigenous Nigerian oil company called Petrobay. Heritage has a 45% equity interest in Petrobay which combines Bayelsa Oil Company’s indigenous support from state government and Heritage’s strong technical and financial capability.

A number of upstream assets in the state of Bayelsa and the larger Niger Delta region have been identified and Petrobay will engage in both bilateral and competitive auction processes to acquire these assets. Petrobay will look to enable Heritage to build upon its current interests in Nigeria, which is Africa’s largest oil producer and contains the second largest oil reserves in the continent.

OML 30 – SUMMARY Of RESERVES(1,2)

  Gross Remaining Reserves  Heritage Group Net
Entitlement Reserves 
  Gross of Royalty (mmstb) Net of Royalty (mmstb) Gross of
Royalty (mmstb)
Net of
Royalty (mmstb)
Proved
Reserves (1P)
538 430 168 134

Proved &

Probable
Reserves (2P)

1,114 891 347 277
Proved &
Probable & Possible
Reserves (3P)
1,733 1,387  539 431

1 Post exercise of Shoreline Power option.
2 As per RPS, as at 31 March 2012.

Malta

The Group holds a PSC with the Maltese government for a 100% interest in Areas 2 and 7 in the south-eastern offshore region of Malta.

Malta Maplegends

Malta

The Maltese licences cover almost 18,000 square kilometres and are situated approximately 80 kilometres (Area 2) and 140 kilometres (Area 7) offshore, in water depths of up to approximately 300 metres. The two Areas are close to, and geologically similar to, a number of producing fields offshore Libya and Tunisia.

With only one well previously drilled in Area 2, the Medina Bank-1 well in 1980 which did not reach its target, both licences are considered to be under explored. Although drilled to a depth of 1,225 metres, the well failed to reach the objective horizons, estimated to be between 1,500 and 4,500 metres.

The interpretation of seismic data in Heritage’s extensive dataset of approximately 5,000 kilometres of 2D seismic, has confirmed a highly attractive Lower Eocene carbonate reef play. Detailed mapping of the primary prospect (Caravaggio) in Area 7 has also identified the presence of an additional deeper carbonate reef target within the Cretaceous section of the structure. These reefal targets are recognised as major hydrocarbon producing zones in the central part of the Mediterranean and several additional prospects and leads associated with possible reefs have been identified within the licenced area.

The Caravaggio prospect within Block 7 has been fully mapped with initial well planning, and is drill ready subject to Maltese government approval.

Area 2

Area 
(sq km)

Date 
Awarded

Heritage
Equity

9,190 December 2007 100%

Area 7

Area 
(sq km)

Date 
Awarded

Heritage
Equity

8,778 December 2007 100%

Libya

HERITAGE has been active in pursuing opportunities in Libya since 2011 and is well positioned to develop these once the political situation in country stabilises.

Libya Maplegends

Libya

Heritage has pursued its strategy of “first mover advantage” through seeking participation in the restoration of the Libyan oil production sector which presents a dynamic and evolving environment.

Libya, which has the largest proven hydrocarbon reserves in Africa, is considered to be a highly attractive oil province due to the low cost of oil recovery, high quality oil which is generally sweet with API gravity ranging between 32–44º, proximity to European markets and well developed infrastructure.

Heritage first established a base in Benghazi in the first half of 2011, having been in discussions with senior members of the National Transitional Council, the legitimate and recognised government of Libya at the time, as well as with its Executive Committee, the NOC and certain subsidiaries. The dialogue with parties across the whole country that would enable Heritage to participate in the rehabilitation of Libya’s hydrocarbons sector is ongoing.

Tanzania

Heritage has two licences in Tanzania that are considered to be geologically analogous to the Lake Albert Basin in Uganda.

Tanzania Maplegends

Tanzania

RUKWA SOUTH

In November 2011, Heritage announced the award of a PSA within the Rukwa Rift Basin, and after targeted relinquishment Heritage has retained an area within South Rukwa that contains all identified prospectivity. Heritage is the operator with a 100% interest.

Earlier exploration activity within the Rift Basin was conducted by Amoco in the mid-1980s with the acquisition of c.2,300 kilometres of 2D seismic data and the drilling of two wells. Heritage completed reprocessing of the legacy 2D seismic data and additional well data studies in 2012/13, and proceeded with the acquisition / processing of c. 600 kilometres of 2D (OBC and land) seismic infilling the legacy data and targeting the basin margin.

Mapping of these data have identified multiple prospects, located along the northern lake margin that are reachable with land based operations. The largest prospect, Rukwa-A with c. 200MMbbl resource potential is considered drill ready. 

KYELA

In January 2012, Heritage was awarded the Kyela covering the entire northern onshore area of the Lake Nyasa (Livingstone) Basin that lies within Tanzanian territory. Heritage is the operator with a 100% interest.

The Block has never previously been targeted for hydrocarbon exploration and Heritage commenced the work programme with the acquisition of a c.1,500 square kilometre of very high resolution gravity survey (FTG), followed by a 100 kilometre reconnaissance 2D seismic survey, positioned utilising the gravity data results. Integration of all data and 3D gravity inversion modelling confirms the presence of tilted fault blocks and structural highs, in close proximity to a depocentre with sufficient sedimentary section and depth of burial for potential source intervals to generate liquid hydrocarbon.

The exploration programme continued with the collection of a high resolution geochemical survey over the licence area and the reprocessing of existing seismic. Results of this work have further complemented and enhance the prospectivity of the licence, and the forward plan is to acquire a focused infill 2D seismic programme for prospect delineation.

Satellite radar surveys indicate areas of wave-calming in both Lake Rukwa and in Lake Nyasa that may be associated with oil seeps. In the event of an oil discovery, at either Rukwa or Kyela, economic scoping shows the commercial viability of either rail export to Dar es Salaam or export by pipeline depending on exploration success. Heritage recognises that the Rukwa and Kyela licences share certain geological similarities with the prolific Albert Basin of Uganda where Heritage had previous experience and significant success.

 

Blocks Area (SQ KM) Date Awarded Heritage Equity Partners Operator
Rukwa South 4,395 October 2011 100% - Heritage
Kyela 1,934 January 2012 100% - Heritage

Papua New Guinea

In 2013 Heritage expanded its portfolio into onshore Papua New Guinea ("PNG") through the farm-in. 

Png Maplegends

PNG

 

PPL 319/PRL 13

In April 2013, Heritage announced the farm-in to Petroleum PPL 319 and PRL 13. Heritage now retains a 40% working interest in both licences through payment of a $4 million contribution to back costs and by funding and acquiring c. 233 kilometres of 2D seismic across both licences. The contiguous licences are located onshore at the junction of the Papuan fold belt and the Miocene carbonate platform where there are producing fields and discoveries including the multi-TCF Triceratops and Elk/Antelope gas discoveries.

The licences benefit from being close to current infrastructure with, Kopi base the logistics hub for Exxon and Oil Search’s development activities located within PPL 486; the Kutubu oil export pipeline and the PNG Liquefied Natural Gas pipeline crossing the acreage. The licences also benefit from the navigable Kikori River which provides a link to the open sea, with load capacity options c. 900 tonnes thereby providing significant additional transport options.

Interpretation of new and legacy seismic/high resolution Gravity/magnetic data has identified significant oil and gas potential within the two prospects and six leads mapped. Of the prospects identified the Tuyuwopi prospect is a drill ready, four way dip closed drape structure, with simple faulting, on a direct migration path from a known Jurassic source kitchen. The demonstrated absence of late-stage structural movement increases the probability that the initial oil charge will have been preserved. 

PPL 437

In October 2013, Heritage announced the farm-in to PPL 437.  Heritage now has a 42.5% working interest in the licences through payment of a $300,000 contribution to back costs; by funding and operating the acquisition of c.104 kilometres of 2D seismic and by taking on our proportion of previous licence participants working interest in the licence. 

PPL 437 lies within a proven hydrocarbon system less than 20 kilometres north of the Elevala and Ketu c.1.0 TCF gas condensate fields and the recent Tingu-1 discovery well. Legacy datasets, which include regional gravity/magnetic data; surface geological mapping, and c.812 kilometres of reprocessed 2D seismic have been evaluated, in conjunction with the new 2D seismic data. Interpretation of this extensive dataset has identified significant gas and associated liquid potential within the drill ready Malisa prospect and five leads mapped.

The licence is located close to existing and planned infrastructure; with gas pipelines from PNG LNG’s gas fields to the LNG plant in Port Moresby and gas commercialisation options for the Elevala and Ketu fields that include a mid-scale LNG project with a LNG plant to be located at Daru.

 Blocks

Area 
(sq km)

Date 
Farm-in

Heritage
Equity1

Partners

Operator

PPL 319 2,025 April 2013 40% Esrey Energy Esrey

PRL 13

160 April 2013 40% Esrey Energy Esrey

PPL 437

1,530 October 2013 42.5%

Kina Petroleum

Kina Petroleum

1 Heritage will earn its equity by funding minimum work programmes.

Ghana

IN JULY 2014 HERITAGE EXPANDED ITS PORFOLIO AND WAS AWARDED TWO HIGH IMPACT EXPLORATION LICENCES IN OFFSHORE GHANA. THE AWARDS PROVIDE THE OPPORTUNITY TO EXPLORE A WELL-KNOWN HYDROCARBON REGION.

Ghana Maplegends

Ghana

Offshore South West Tano Block

In July 2014, Heritage obtained a 39.6% interest in the Offshore South West Tano Block, which covers a gross area of approximately 175 square kilometres. The Petroleum Agreement was successfully ratified by the Government of Ghana in Parliament on 18 July 2014.

The South West Tano Block is offshore deep water acreage, situated within the multiple fan and channel systems of the proven Cretaceous play fairway with water depths ranging from 1,000 to 2,750 metres.

The Block is located adjacent to the producing Jubilee Block, which has the entire necessary infrastructure and could be utilised for any discovered hydrocarbons. Similarly, the Tweneboa-Enyenra-Ntomme approved development lies c.20 kilometres to west.

The work programme has commenced and detailed mapping within the licence area has identified multiple prospective Upper and lower Cretaceous leads. Heritage is working closely with its partners, Blue Star Exploration Ghana Limited and GNPC Exploration and Production Company Limited (ExplorCo) to advance a number of these leads to prospect status.

East Keta Block

In July 2014, Heritage obtained a 38.7% interest in the offshore ultra-deep water East Keta Block, which covers a gross area of approximately 2,239 square kilometres.

The East Keta Block is a frontier exploration licence located approximately 100 kilometres from the coast of Ghana with water depths ranging from c. 2,500 to 3,500 metres.

The work programme has commenced and initial mapping within the licence area has identified prospective Cretaceous and Miocene aged fans and channels. Heritage is working closely with its partners, Blue Star Exploration Ghana Limited and GNPC Exploration and Production Company Limited (ExplorCo) with the start of planning for a 3D seismic acquisition programme within the licence.

 

Blocks Area (SQ KM) Date Awarded Heritage equity Partner Operator
Offshore South West Tano 175 18 July 2014 39.6% Blue Star Exploration Ghana Limited Joint Operating Company
East Keta 2,239 18 July 2014 38.7% Blue Star Exploration Ghana Limited Joint Operating Company