Heritage Oil has commenced drilling the Miran West-4 appraisal well on the Miran Block in the Kurdistan region of Iraq.
The well will be spud to an estimated target depth of 1,550m and will further appraise the oil potential of the upper cretaceous area.
Heritage intends to test and evaluate several intervals within the upper cretaceous structure and will also drill a 500m horizontal section in the reservoir in order to maximise the penetration of fractures.
Heritage Oil CEO Tony Buckingham said that following the successful Miran West-3 test results, the spudding of Miran West-4 continues the company's active work programme in Kurdistan.
"We remain focused on the monetisation of the world class Miran Field, targeting the phased development of the field, whilst also considering further value generating opportunities," Tony added.
"The planned extended well test will sell up to 5,000 barrels of oil per day into the local market generating cash flow from the field."
After the completion of the drilling, expected to take three and a half months, Heritage plans to conduct an extended well test of the well's oil bearing reservoirs that will sell about 3,000 barrels of oil per day to 5,000 barrels of oil per day into the local market.
Initial development of the Miran Field is planned by the end of 2013, targeting 80 million cubic feet per day to 180 million cubic feet per day of gas and 10,000 barrels per day to 15,000 barrels per day of oil and condensate.
Full field development will comprise of an integrated development of the oil, gas and condensate, with gas exports to Turkey beginning in 2015.
Heritage Oil holds a 75% interest in the Miran Block and Genel Energy has the remaining 25% stake.
Image: Drilling at Miran West-4 well is expected to be completed in about three and a half months. Photo: Eric Kounce.