Major find in age of shrinking resources

Oil firm’s ‘transformational’ discovery in northern Iraq a shot of hope to those who gamble on volatile region

CALGARY

On Wednesday, Heritage Oil Corp.HOC-T announced what is believed to be the biggest discovery in the area in recent decades. Based on the results of a seismic exploration program and a single drilling well, Heritage said it has discovered an oil body that contains 2.3 billion to 4.2 billion barrels of oil.

That number is likely to shrink when it is subjected to more sophisticated engineering. But it is nevertheless a monster in an age of shrinking pools, and a shot of hope to both U.K.-based Heritage, whose principal Canadian office is in Calgary, and a small group of companies that have gambled on the area’s politically unstable soils.

“It’s a company-maker. It’s transformational,” said Heritage chief financial officer Paul Atherton. “We’re delighted we’re finding huge quantities of oil.”

Globe and Mail