Heritage is a versatile organisation with a portfolio of quality assets managed by a highly experienced team with excellent technical, commercial and financial skills. The Company has a producing asset in Nigeria and exploration assets in Ghana, Malta and Papua New Guinea.

In 2014 Heritage Oil was acquired by Energy Investments Global Ltd. Heritage typically focuses on regions which may have been overlooked and where it can participate as an early entrant. The asset portfolio provides both geographical and operational diversification.

Producing
Material corporate transactions undertaken in 2012 provided a balance to the portfolio with assets that include significant production and reserves. The joint venture company Shoreline Natural Resources Limited (“Shoreline”), created in partnership with Nigerian company Shoreline Power, has established an indigenous company which will provide a platform for further growth within the country. Through Shoreline, Heritage acquired an interest in OML 30, a world class asset. OML 30 lies onshore the Niger Delta in one of the most prolific oil provinces in the world and includes eight producing fields with oil and gas contained in numerous stacked reservoirs. Entry into Nigeria was partially funded through the disposal of interests in Kurdistan, for which an attractive valuation was achieved.

Exploration
Activity on the exploration portfolio is focused on Ghana, Papua New Guinea, and Malta.

With its partners, Heritage holds 45% of both the Offshore South West Tano (OWST) and East Keta licence blocks in Ghana, in 1800 and 2000+m of water offshore Ghana. OWST will be drilled in 2020 and East Keta will see seismic acquisition likely 2020/21. Both are highly prospective.

Heritage with its partner Kina holds attractive acreage in Papua New Guinea, a gas/condensate system close to existing and planned gas evacuation infrastructure. The proposed construction of a new LNG facility in the area increases the attractiveness of the holding.

Heritage holds a 100% licence covering the Areas 2 and 7 in Malta. The areas contain the Caravaggio and Medina bank prospects. A data room is currently open inviting farm in offers for the high-risk high reward prospects. The prospects are ready to drill. This area of the Mediterranean is considered underexplored. 

NIGERIA

OML 30 is a world class asset in the Niger Delta. It includes 8 producing fields each with oil and gas contained in up to 40 stacked reservoirs.

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 very strong pressure support. The oil is good quality 22-38° 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 rigless workovers in existing wells and drilling of additional producers.  Current gross production in from the eight fields is about 80,000 barrels of oil per day, supported by gas lift infrastructure in most of the fields. 

The licence benefits from infrastructure being in place with nine flow stations (eight currently operating) that have the capacity to handle over 350,000 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 or upgraded if required.

The OML 30 acquisition included a segment of the TFP which transports liquids from OML 30 to the Forcados Terminal. The 87 kilometre long pipeline is 28 inch in diameter and largely buried along most of its length. It has a current capacity of about 600,000 bpd. The TFP is used by several other operators and provides additional revenue for OML 30 through the tariffs charged.

In 2017, a transfer of the operatorship was approved by the Government of the Federal Republic of Nigeria to Heritage Energy Operational Services Ltd (HEOSL)..  Since 2017, Heritage has embarked on aggressive rehabilitation and upgrade of facility equipment, resulting in additional wells being opened and optimised for production.

Current gross production of 80,000 bopd from the asset represent a significant increase from average production of 25-45,000 bopd prior to Heritage operating the asset. Most of the current production increase is as a result of production optimisation activities and additional investments in facilities equipment to improve capacity and uptime. Some well intervention activities and flowline repairs have also contributed to the current production. The production growth was also supported by improved security and robust community relations programs.

The drilling of new wells, planned to commence in 2020, should provide a significant increase to production with the longer term potential estimated at over 150,000 bopd gross by 2021.

GHANA

Map source: KeyFacts Energy

In 2014 Heritage was awarded two high impact exploration licences in offshore Ghana. The awards provide the opportunity to explore a well-known, prolific hydrocarbon basin.

Offshore South West Tano Block
Heritage has a 39.6% interest in the Offshore South West Tano (“OSWT”) Block, which covers a gross area of approximately 175 square kilometres. 

The deepwater OSWT Block is situated within the multiple fan and channel systems of the proven Upper Cretaceous play fairway of the Tano Basin in water depths ranging from 1,000 to 2,750 metres. 

The Block is located adjacent to the producing giant Jubilee field and the recent Springfield discoveries adjacent in the East with prospectivity such that a stand alone FPSO development is clearly possible. Away from a stand alone development potential for tie back to the Jubilee infrastructure is possible. Similarly, the Tweneboa-Enyenra-Ntomme (TEN) development lies c.20 kilometres to the west, with the Aker-operated Deepwater Tano/Cape Three Points directly to the south placing the OSWT block at the centre of a highly prolific basin and offering a number of tie back development opportunities. In addition to standalone prospectivity, clear targets have been identified indicating both Jubilee and Tweneboa/Ntomme extensions into the block.

The work programme has commenced and detailed mapping within the licence area has identified multiple prospective Upper Cretaceous leads. Currently two locations are firm with drilling being planned for June 2020.

East Keta Block
Heritage has 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. Seismic is planned, likely to take place in 2020.

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.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 180- 350 metres. The two Areas are close to, and in a geologically analogous play to a number of producing fields offshore Libya and Tunisia.

Map source: KeyFacts Energy

Both areas are considered to be under-explored, with only one well (Medina Bank-1) previously drilled in Area 2, by Texaco in 1980. The well did not reach its Upper Cretaceous target and the structure remains untested. 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. Heritage’s evaluation indicates potential reserves in the order of 300mmbbl, similar to that carried by Texaco. With water depth under <200m a range of development options are 
available.

Additionally, interpretation of Heritage’s extensive seismic dataset of approximately 5,000 line kilometres of 2D has confirmed the presence of a highly attractive Lower Eocene stacked carbonate play. Detailed mapping of the primary prospect (Caravaggio) in Area 7 has also identified the presence of an additional deeper carbonate target within the Cretaceous section of the structure. These 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. Geochemical studies and basin modelling has indicated mature oil source rock charging the structure directly.

The Caravaggio prospect within Area 7 has been fully mapped with initial well planning complete, and is drill ready subject to Maltese government approval. Similarly the Medina Bank prospect located solely within Area 2 is ready to drill.

Currently the Malta licence is being offered for Farm out.

PAPUA NEW GUINEA

In 2013 Heritage expanded its portfolio into onshore Papua New Guinea (PNG) through the farm-in into PPL 437.

PPL 437
In October 2013, Heritage announced the farm-in to PPL 437. Heritage 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. 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.

LEADERSHIP / CONTACT

Keith Walters,Vice President, Operations
Keith.walters@heritageoilltd.com

Linkedin 'People'

Heritage Oil Ltd 
6th Floor, 27 Knightsbridge London
SW17 7LY, United Kingdom

Tel: +44 (0) 1534 835 400
Fax: +44 (0) 1534 835 412

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