Preparations are underway by Heritage Oil to drill a high-impact oil well in off Malta in Area 7. The company said in its financial statements published this morning that is actively looking to contract a rig to drill in the area south of Malta.

Heritage Oil said that in Malta, it had an extensive data set of approximately 5,000 kilometres of 2D seismic that indicated the presence of multiple prospects and leads.

"This includes the acquisition over Area 7, in July 2011, of 1,400 kilometres of infill and exploration 2D seismic."

The group entered into a production sharing contract with the Maltese government in December 2007 for a 100 per cent interest in Areas 2 and 7 in the south-eastern offshore region of Malta.

The licences cover almost 18,000 square kilometres and are situated approximately 80 kilometres and 140 kilometres, offshore Malta, for Area 2 and Area 7 respectively, in water depths of up to approximately 300 metres. The two Areas are close to, and similar to, a number of producing fields offshore Libya and Tunisia.

The licences are underexplored with only one well previously drilled in Area 2; the Medina Bank-1 well in 1980 which gave rise to a dispute with Libya. The well was drilled to a depth of 1,225 metres but failed to reach the target horizons, estimated to be between 1,500 and 4,500 metres.

"Heritage has an extensive data set of approximately 5,000 kilometres of 2D seismic, including data acquired in July 2011 using greatly improved acquisition parameters compared to our inherited legacy dataset.

"The interpretation of seismic data has confirmed the mapping of a highly attractive Lower Eocene carbonate reef play within a prospect in Area 7 and also allowed for the mapping, with greater certainty, of deeper carbonate reef play within the Cretaceous section of the prospect.

"These primary targets are recognised as major hydrocarbon producing zones in the central part of the Mediterranean. Well planning is being undertaken to drill the principal prospect in Area 7."

The company has also recognised the presence of a north-south trending shelf margin on the eastern part of the blocks where a number of attractive reef prospects have been mapped.

Heritage is also considering using its holds in the Sahara to assist with the drilling of its targets offshore Malta and is actively looking to contract a rig to drill in Area 7.