pipeline the only way to go, page-12

re: pipeline and kingfisher wink

No news of Kingfisher spuddinga s yet from eithet Heritage's or Tullow's websites. Here's what Heritage said about Kingfisher a few months ago. Note its being drilled from the shore as SP thinks we might be able to do the large Ngassa prospect.

For Immediate Release: Thursday, March 23, 2006
HERITAGE OIL PROVIDES UGANDA WORK PROGRAM UPDATE
Calgary, Alberta, March 23 –Heritage Oil Corporation (TSX: HOC) today announced that
the Company will be drilling the Kingfisher-1 exploration well in its Block 3A permit in
Uganda. The Kingfisher-1 well is expected to spud this summer and will be the first of an
initial two well program in Block 3A. Two rigs are currently available in the area and much
of the consumables are already in-country. The Kingfisher prospect extends out into Lake
Albert, but can be conveniently drilled from the lakeshore. Heritage is the operator of Block
3A with a 50% interest, while Tullow Oil owns the remaining 50%.
The prospects for exploration drilling in the Lake Albert area have significantly improved
due to the recent exploration success of Hardman Resources (Hardman) in Block 2, which
lies immediately to the north of Heritage’s permit. During the last three months, Hardman
has drilled two wells and found oil in both. Hardman has reported that the first of these two
wells, Mputa-1, recovered samples of black oil and had oil and gas readings over a gross
interval of 220 meters. This well definitively proved the presence of all the components of a
working petroleum system in the basin, namely mature source rock, good quality reservoir, a
valid trap and sealing shale formations. Hardman’ssecond well, Waraga-1, reportedly
appears to be even more encouraging, as it recovered light oil samples which suggest an oil
column of 45 meters. Hardman has reported it intends to production test its wells as soon as it
can mobilize test equipment.
Micael Gulbenkian, Chairman & CEO said: “the Kingfisher prospect is a very large
structural closure which, if sufficient reservoir pay is present in the section, has the capacity
to contain large volumes of oil. The presence of oil in both the nearby Hardman wells which
has proved a working hydrocarbon system within the basin and the apparent absence of
carbon dioxide in the Hardman wells, all make the drilling of the Kingfisher prospect an
exciting exploration opportunity.”
He added: “Kingfisher appears to be optimally placed within the basin with respect to the
assumed hydrocarbon-generating source rocks that are postulated to be present in the section
of sediments beneath Lake Albert, which makes it additionally prospective as a drilling
target. The Kingfisher prospect is one of a number of large prospects and leads mapped from
2D seismic data acquired over Lake Albert during the past two years.”

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