Heritage Oil Ltd takes stakes in two Petrodel blocks - Tanzania
Heritage Oil Ltd has signed a farm-in agreement with Petrodel Resources whereby it has the right to earn a 70% working interest in the Kimbiji area and a 29.9% working interest in the Latham area. In order to earn these interests, Heritage will fund the required work program on both blocks, comprising the acquisition of both 2D and 3D seismic data, and the drilling of two exploration wells in the Kimbiji area. Heritage will be appointed operator upon the drilling of the second exploration well. Total exploration costs for the initial exploration term for the two licenses are estimated at approximately US$ 17.5 million for the Kimbiji area and US$ 5-12 million for the Latham area. Over 900km of 2D seismic are planned to be acquired with the SeaBird Exploration M/V "Geo Mariner", one third of which will be Kimbiji. The 9,354 sq km Latham/Kimbiji blocks straddle the Tanzanian coast and extend into the offshore sector; water depths range down to 1,250m. A number of wells have been drilled in the area, the last of which was the Dira 1 duster, abandoned by Shell in 38m of water in November 1991 at a total depth of 3,529m in the Lower Miocene. According to Petrodel, Direct Hydrocarbon Indicators (DHIs) have been interpreted on offshore sections. A 2D seismic survey commenced on 17 February 2008.
This article is extracted from International Oil Letter, Vol 24 issue 16, published 21 April 2008.
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