Canadian Company Grabs Second Oil Contract in Iraq

Canadian Company Grabs Second Oil Contract in Iraq
Submitted by davidswanson on Tue, 2007-10-02 16:51. Media

Heritage Oil awarded production sharing contract in Kurdistan Region of Iraq

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SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Oct. 2 /CNW/ - Heritage Oil Corporation (TSX: HOC) ("Heritage"
or "the Company") today is pleased to announce that it has executed a
Production Sharing Contract with the Kurdistan Regional Government (KRG) over
Miran Block in the south-west of the Kurdistan Region of Iraq and that
Heritage will be operating as a 50/50 partner with the KRG to create a 20,000
barrel per day oil refinery in the vicinity of the licence area.

Under the terms of the agreement, Heritage Energy Middle East Limited, a
wholly owned subsidiary of Heritage, will serve as operator. Heritage will
join the existing and increasing presence of international oil exploration,
development and production companies operating in the Kurdistan Region of
Iraq.

The licence area is 1,015 square kilometres and encompasses the very
large Miran structure. This structure, as expressed at surface, constitutes an
area of approximately 500 square kilometres and appears to have three separate
culminations. Reservoir potential exists at numerous zones that management
estimate could contain in excess of 1 billion barrels of oil. Recent drilling
results have demonstrated the enormous potential of this region.

In addition, Heritage has also entered into a strategic agreement with
the KRG to establish a 50/50 joint venture company which shall build, own and
operate an oil refinery in the vicinity of the licence. The refinery, which
should have a capacity of 20,000 barrels of oil per day, is scheduled to be
operational to design specification within approximately two years. Heritage
is especially pleased to be part of this extremely exciting and profitable
project that will create value added petroleum products for the region and all
of Iraq.

Heritage will commence geological work immediately, having established
its local office in Erbil in 2005, and aims to commence a high-impact
exploration drilling program in 2008. Heritage has assembled a highly
experienced technical team with considerable experience of the regional
geology.

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