Heritage Oil plan drilling off Malta, ‘highly attractive prospect’ identified

In a statement issued this morning announcing financial results for the year ended on 31 December 2011, Heritage Oil chief executive Tony Cunningham says that the seismic data collected last year in Area 7 to the South East of Malta, has shown that "primary targets are recognised as major hydrocarbon producing zones in the central part of the Mediterranean."

The company said that the seismic data collection exercise allowed for mapping - with greater certainty - of deeper carbonate reef play within the Cretaceous section of the prospect.

Cunningham said that "well planning is being undertaken to drill the principal prospect in Area 7."

In addition, Heritage Oil said it has also recognised the presence of a "north-south trending shelf margin on the eastern part of the blocks where a number of attractive reef prospects have been mapped."

Heritage Oil entered into a PSC with the Maltese government for a 100% interest in Areas 2 and 7 in the south-eastern offshore region of Malta in 2007.

The licences cover almost 18,000 square kilometres and are situated approximately 80 kilometres and 140 kilometres, offshore Malta, for Area 2 and Area 7 respectively, in water depths of up to approximately 300 metres.

The two Areas are close to, and similar to, a number of producing fields offshore Libya and Tunisia.

Heritage Oil claims the licences are "underexplored" with only one well previously drilled in Area 2; the Medina Bank-1 well in 1980. The well was drilled to a depth of 1,225 metres but failed to reach the target horizons, estimated to be between 1,500 and 4,500 metres.

Heritage has an extensive data set of approximately 5,000 kilometres of 2D seismic, including data acquired in July 2011 using greatly improved acquisition parameters compared to the inherited legacy dataset.

In October last year MaltaToday revealed Heritage Oil's controversial acquisition of controlling interest in Sahara Oil Services Holdings Limited - Sahara Oil - which owns the entire share capital of Sahara Oil Services Limited, an oil field services company in Libya.

Heritage claims that Sahara, is uniquely positioned to pursue field rehabilitation activities and be awarded exploration and production licences as we have operator status. "This means Heritage is well placed to play a significant role in the future oil and gas industry in Libya," Cunningham said, adding that he views the acquisition as consistent with HO's strategy of "first mover advantage and entering regions with vast hydrocarbon wealth where we have a strategic advantage."