other bids now more likely

Good morning people,

http://www.investegate.co.uk/Article.aspx?id=200611061405536085L

6 November 2006 - Heritage Oil, the operator of the Kingfisher-1 exploration well in Uganda, in which Tullow Oil plc (Tullow) is a 50% partner, today issued the following press release.

Heritage Oil's Kingfisher-1 well in Uganda test produces 4,120 BOPD

Heritage Oil Corporation (TSX: HOC) today announced that the upper zone of the Kingfisher-1 well in Block 3A, Uganda was tested (DST#2) at a stabilized flow rate of c. 4,120 barrels of oil per day (bopd) through a fixed one inch choke at a flowing well head pressure of 221 psia. The oil was light (c. 30degrees API) and sweet with a low gas-oil ratio and some associated wax. The test rate was constrained by the available completion and test facilities, and the flow data indicated that when equipped for production, the well should be capable of flowing at stable rates of approximately 5,600 bopd. The flow data from the test indicated an extremely high permeability of over 2,000 milliDarcies, which partly explains why the test was constrained.

This certainly has put more pressure on TLW now to make sure the SOA succeeds. I am sure that TLW now will be more than prepared to raise its bid if it needs to.

IMV this announcement did 5 things:
1. Increase the likelyhood of TLW itself as a target, seeing that there were already rumours prior to this
2. Increase the likelyhood of other bids for HDR
3. Eliminate any doubt that TLW might influence Heritage Oil and have good news from kingfisher witheld to benefit the SOA. This is the most important.
Bearing in mind that the main target is still to come.
4. Makes Nziizi look very promising.
5. Reinforces the fact that TLW is unlikely to pull out.

Don't forget news from Aigrette is due

I think it's going to be a good week!