By Max Clarke

Heritage Oil, an independent, British-based upstream exploration and production company, has announced a major gas discovery in the Kurdistan Region of Iraq.

Following completion of the deepening and testing of the Miran West-2 well, management estimates that the Miran West structure has a 50-90% probability (P90- P50) of gross in-place volumes of gas of between 6.8-9.1 trillion cubic feet with 42-71 million barrels of condensate and 53-75 million of oil.

Heritage Oil Plc is listed on the London Stock Exchange under LSE: HOIL, and is a FTSE 250 member.

The location of the Miran Field in Kurdistan makes it ideally placed to gain access to secure and profitable European gas markets. Over the last two years a number of major gas companies, including OMV, MOL and RWE, have entered into agreements in Kurdistan with a view to creating a route to market for Kurdistan’s major gas reserves.

Tony Buckingham, CEO of Heritage Oil, commented:

“The discovery of a major gas field of up to 12.3 TCF in-place with exceptional flow rates makes this one of the largest gas fields to be discovered in Iraq. This well has substantially de-risked the field so we have the confidence to accelerate the work programme on Miran. We are considering various development options including a tie-in to planned infrastructure that will achieve first production for both oil and gas in 2015. This discovery has the potential to generate substantial further value for our shareholders and benefit the people of Kurdistan and Iraq.”