Another newcomer to the main market...anybody any idea what the production figures are ?

now go post haste to DGO thread!

ok .... so here's some more light on this subject courtesy of Reuters ...... hmm! make of it what you will ......

* Genel Enerji in merger talks with Heritage Oil
* Focus on Kurdish oil field
(Reuters) - Unlisted Turkish Energy company Genel Enerji is the unnamed party in merger talks with British oil explorer Heritage Oil , sources close to the situation said on Thursday.

HOIL has two main assets - stakes in oil blocks in Uganda and Iraq's semi-autonomous Kurdistan region where discoveries, potentially containing billions of barrels of oil, have been made.

The tie-up talks with Genel Enerji, which is part of the Cukurova Group, one of Turkey's largest industrial conglomerates, are centered on Heritage's Miran field in Kurdistan, the sources said .... "Iraq is the focus," one source said.

Rather than buy out Heritage shareholders, Genel would contribute assets to the enlarged entity, one of the sources, who spoke on condition of anonymity, said.

The talks could prompt a bidding battle for Heritage but industry sources said there was a limited field of potential acquirers.

The government in Baghdad has described the oil deals signed by the Kurdish Regional Government as illegal and anyone investing there is effectively blocked from investing in the rest of Iraq.

Chinese state-owned oil companies which have been major buyers of oil assets internationally in recent years, are actively bidding for contracts in Iraq, as are the Western oil majors, making it unlikely they will shift their focus to Kurdistan.

Privately-owned French oil company Perenco, whose name has been linked with Heritage in the press, is not interested in buying the company, industry sources said.

Heritage's shares have soared in recent months, on the back of a major oil find at Miran ..... However, some industry executives believe investors have become too optimistic about Miran given the estimate of oil in place of up to 4.2 billion barrels was based on the results of just one well.

Times quote:
TURKISH GROUP IS HERITAGE TIE-UP TARGET

Turkey's Genel Enerji has been revealed as the unnamed company engaged in merger negotiations with Heritage Oil. Ever since the London-listed group announced on Wednesday it was in talks about a merger that was to be treated as a reverse takeover, speculation on the possible partner has been rife. According to the source close to the discussions, Genel would contribute assets to the enlarged entity rather than buying shareholders out. The person added that if a deal is completed, it could be announced by the middle of next week.

provided i make a decent profit, i am not much fussed ..... one could have argued that IEC were sold too cheap, but certainly ONGC reckoned they had to pay too much

10% profit? go on cynic and hold a share for a whole week, lol

dont have this in all seriousness......what happens now with it........do they come back relisted at much higher price

i don't know ... we'll just have to wait and see

Trading was resumed on TSX yesterday at 12:47. It closed at C$12.28 = 692p .

http://www.stockhouse.com/tools/?page=%2FfinancialTools%2Fsn...


higher higher higher higher..... you little barsteward.

very good article in Sunday Times on this proposed merger ..... if it actually happens, though there is no reason why it should not, then "The tie up would put the combined group at the forefront of one of the world's last undeveloped oil regions ....... increase production from today's 100k bopd to 1m bopd by 2012".

lets hope us HOIL holders are rewarded as a result on the combined assets and the increased cash input and that there is no dilution...we don't want to get shafted on this one!

huge and important RNS just out - see Newswatch

Confusion reigning at the moment but its as SB called it here in this post...



sportbilly1976 - 9 Jun'09 - 07:48 - 4353 of 4379


before:

mkt cap 1.5bln, shares in issue: 257mln - share price 5.83

now;

mkt cap 3.7bln, shares in issue: 520mln - share price 7.11

very simplistic, but this is where it should come back... :-))

7.11p per share on relisting.

The stock is trading at the mo at a big discount but that wont last long after the conference call this morning.

certainly a very muted response at the moment, but it all looks pretty complex to me, but then i'm a simpleton ...... would certainly expect some decent press/analyst coverage in next 48 hours, and cannot imagine it will be less than positive

Conference call in next hour cyners, should sort it.

Not sure when it goes into FTSE 100 though..... thats the biggy with trackers having to buy.

i suspect next rotation is still a couple of months away

now need DGO and PCI to get their running shoes on!

This is how I now see it cyners....

Further news from reuters.....

UPDATE 2-Heritage Oil to merge with Turkey's Genel
09 Jun 2009 - 08:38

* Heritage to merge with Genel Energy

* Creating Kurdistan focused oil company

* Shares rise 1.5 pct as suspension lifted

(Adds background, detail, share rise)

By Tom Bergin

LONDON, June 9 (Reuters) - UK-based oil explorer Heritage Oil said on Tuesday it had entered a preliminary deal to merge with Genel Energy International, a unit of Turkey's Cukurova Group, creating a Kurdish-focused group worth around $5.5 billion.

Heritage said in a statement that the deal would be structured as a takeover of Genel by Heritage, whereby Heritage paid with shares and Genel investors end up with around 50 percent of the enlarged group.

Heritage's shares, which were suspended last week after the company said it was in merger talks, traded up 1.5 percent at 597 pence at 0710 GMT.

Chief Financial Officer Paul Atherton told reporters on a conference call that Genel was worth around $3.3-3.6 billion, which compared with Heritage's market capitalisation of $2.4 billion before the talks were announced............ ENDS


So in effect HOIL worth $2.4 billion before merger, merger created group worth $5.5 billion therfore as a % pre merger HOILS stake 43.6%, post merger HOIL now 50% therefore 6.4% premium and a listing on the FTSE 100 which gurantees trackers have to buy in.... result SP is way undervalued at present market price.

Really flying now !.

Yep just needed a kick up the jaksy.

Broker analysis BEFORE todays news..... must be upgrades going on right now....

Heritage Oil Ltd

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Panmure Gordon [R]
05-06-09 BUY -38.71 -15.19 -32.37 -12.70

Evolution Securities Ltd
04-06-09 BUY -43.63 -16.11 -44.73 -16.54

Canaccord Adams
04-06-09 BUY -23.33 -9.12 -21.48 -8.36

Oriel Securities
03-06-09 BUY

Tristone Capital
01-06-09 MPER -22.00 -32.00

Hanson Westhouse
16-12-08 BUY

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus -33.68 -16.11 0.00 -33.33 -16.54 0.00
1 Month Change -33.68 1.38 0.00 8.44
3 Month Change -33.68 -16.05 0.00 -5.75


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS % % %
DPS % % %

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA -22.60m m m

EBIT -24.21m m m

Dividend Yield 0.00% % %

Dividend Cover x x x

PER -59.11x -36.31x -35.37x

PEG f f f

Net Asset Value PS -12.77p p p

glad the old bald bastard called one right eventually