Monday September 15, 08:55 AM
Heritage Oil gets govt approval for 4 Tanzania farm-ins
LONDON (Thomson Financial) - Heritage Oil Ltd. said it has received approval from the government of Tanzania for farm-ins to four exploration licences in that country and the transfer of operatorship to Heritage.
The licences are Kisangire
and Lukuliro, which are held under one production sharing agreement (PSA), and Kimbiji and Latham, which are also held under one PSA.
Heritage said it plans to drill its first well in Tanzania in the second half of 2009.
The Kisangire and Lukuliro PSA was originally awarded to Dominion Petroleum Ltd (LSE: DPL.L - news) . in May 2005. Heritage signed a farm-in agreement with Dominion in April 2008.
Under the farm-in deal, Heritage has the right to initially earn a working interest of 55 percent in both the Kisangire and Lukuliro licences by funding all costs to acquire a minimum of 150 kilometres of 2D seismic data. It also has an option to earn an additional working interest of 15 percent to raise its participating interest to 70 percent by funding 87.5 percent of the costs of a second well.
The minimum exploration expenditure required during the first exploration period, which includes seismic acquisition and the drilling of two wells is $10 million, Heritage said in April.
Under the farm-in agreement with Petrodel for Kimbiji and Latham, Heritage has the right to earn a 70 percent working interest in the Kimbiji licence area, and a 29.9 percent working interest in the Latham licence area in return for funding all seismic costs required for the initial exploration period on both licences and the drilling of two exploration wells within the Kimbiji licence area.
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