Heritage Oil has resumed its buy-back Program, together with several new initiatives on its 2003 development program Oman. The corporation voluntarily suspended its issuer bid program for the Sultanate, Congo and Uganda at the commencement of the drilling campaigns in September 2002.
As announced at the beginning of March, the Tibat-1 well offshore Oman was a gas and condensate discovery. The Tibat-1 well has confirmed a 185-meter gross hydrocarbon column of which 15 meters is in the Mauddud reservoir and 170 meters in the Upper Thamama reservoir. The Tibat-1 well tested 10-12 million cubic feet per day (mmcf/d) of gas, with associated condensate production rates of 75 barrels per day (bpd) per mmcf/d.
Following the success of this drilling program, various commercialization options and other technical issues are being discussed by the joint venture partners. There is a likelihood that another well will need to be drilled at a crestal location to access the estimated 200 meters of reservoir located up-structure and also to seek a more highly fractured zone to ensure greater well productivity. The joint venture partners are actively undertaking commercial discussions with regard to the sale of the gas in the United Arab Emirates (UAE).
Heritage adopts from time to time a hedging policy to mitigate some of the commodity pricing risk to which it is exposed. The main objective of the hedging policy is to give Heritage protection from severe negative commodity price movements and to forward sell production at prices that are considered to be advantageous to the corporation. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
