heritage to abandon third oil well

Not good news, nothing official on the TSX as at 0025hrs, 18/2/2005, which is strange as the African article is dated the 14/2/2005.

Web site......
http://allafrica.com/stories/200502150407.html

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Heritage to Abandon Third Oil Well

New Vision (Kampala)

NEWS

February 14, 2005

Posted to the web February 15, 2005

By Emmy Olaki

Kampala

Heritage Oil and Gas will abandon Block 3 in the Semliki after finding a high concentration of carbondioxide.


This means Uganda will have to wait longer to produce its own natural gas and Heritage will start drilling another well.


"The analysis shows a very high concentration of carbondioxide with hydrocarbons between 10% to 20%. The well is not commercially-viable," a statement released recently from Heritage said.


A high concentration of carbondioxide in gas deposits usually affects the commercial viability of the deposits.


Last December, Heritage discovered gas in Turaco 3 (Third Well), but the presence of carbondioxide in the stream compromised the test and sampling procedures on site. Pressurised samples were shipped to a laboratory in London for testing.


"After completion of the production test, the company has attempted to locate the source and migration path of the carbondioxide and the extent of contamination within the licensed area," the statement said.


It is believed that at this early stage, it is less likely that there is carbondioxide in the northern part of the licensed area, although there are studies going on.


"Turaco 3 has proved all elements of a new hydrocarbon system in the licensed area, like a world- class reservoir and an effective seal and mature hydrocarbon source rocks. While the presence of carbondioxide represents an additional and an unidentified exploration risk, the basin remains highly prospective for oil," Michael Gulbenkian, Heritage's chief executive officer and chairman said.