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

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

First new broker note out from digital look...

09-Jun-09 Heritage Oil HOIL Panmure Gordon Buy 619.00p 500.00p 700.00p

700p new sp target.

Good to see you posting regularly goldfinger, I missed you.

Realistic price target short term imo.

Next year post financing will be a different ball game.

Nice to see you aswell......


INSTANT ANALYSIS: Heritage bound for the FTSE 100 after this deal
9 June, 2009 01:26:13 PM


The former oil minnow is in the process of completing a transformational deal that should eventually catapult it into the FTSE 100 alongside Tullow and Cairn. This is a deal that will see investors' holdings significantly diluted with merger partner Genel's parent, the Turkish conglomerate Cukurova taking a 50% stake in the enlarged company. The deal, a reverse takeover, is being financed in entirely by paper. Genel boss Mehmet Sepil will be chief executive, with Heritage boss Tony Buckingham taking the role of executive chairman. The City seems to like the deal, with the shares marked up sharply. Panmure was the first to give its opinion rating the Heritage a buy with a 700p a share price target. The broker says: 'There is one area of concern for us in this deal in that it increases the assets held within Kurdistan where there appear to still be a few arguments between the KRG and the main Iraqi government in Baghdad over the legitimacy of these licences. However, we believe that this appears to be gradually getting resolved with the start of exports from Tawke and Taq Taq fields and that issues over the payment of revenues to the contractors will also be resolved in due course.'

EVO TAKE Heritage is set to merger with Genel Energy, a privately held Turkish company, that should see consolidate its position in Kurdistan and have sufficient cash flows from production to fund the Ugandan project.

DETAILS Under an MOU Heritage is to issue 260m new shares to Genel Energy in exchange for Genel injecting its assets in Kurdistan into Heritage. Genels primary producing assets are the Taq Taq (44%) and Tawke (25%) fields with a further 25% in the Miran West licence. The combined enlarged group has an estimated 300m boe of proved and probable reserves. Production from these assets is currently averaging 30,000bbl/d and should reach 43,000bbl/d by YE. The cash flow generated should enable expansion of operations both in Kurdistan and Uganda.

VALUATION AND RECOMMENDATION Based on the CPR report for Addax and other industry sources we estimate that in Kurdistan the 2P reserves for the new company are worth around US$8.5/bbl. Applying this figure to our model and adjusting for the news shares gives a fair value of 913p. We set our new target price at 900p.

i expect things will take a few days to settle down as both PIs and institutions take stock of the situation and position themselves accordingly ..... certainly i do not see much if any downside from the current level of +/-610

Nope was more or less thinking the same.

SP should move slowly but surely north as value is realised.

hehe this guy and his buddy Tim Spicer were lucky to get out of Moresby alive; now they could probably pay cash for the country...

looks as though buys + sells are pretty much even, the former even outnumbering the latter, so guess MMs just shaking out some stock (560) ..... good time to buy in if you don't already hold

A dogs dinner going on here.

Iraq oil minister say the Turks and Kurdies operations are illegal. Something to that effect.....

Iraq says Kurd oil deals illegal, Kurds foot bill

Reuters, Wednesday June 10 2009 * Iraq reaffirms Kurdish oil deals illegal
* Rejects paying private oil firms in Kurdish deals
* Confirms winners of oil bids to be announced end of June
(Adds byline, quotes)
By Ahmed Rasheed
BAGHDAD, June 10 (Reuters) - Contracts that semi-autonomous Kurdish authorities have signed with private oil firms are illegal until they are ratified by the Oil Ministry in Baghdad, the Iraqi government reaffirmed on Wednesday.
Oil Minister Hussain al-Shahristani also rejected paying firms that have developed the Taq Taq and Tawke oil fields in northern Iraq as part of contracts signed independently with the Kurdish Regional Government (KRG).
"These contracts need to be ratified by the Iraqi federal Oil Ministry. Till that time they are illegal," government spokesman Ali al-Dabbagh told reporters at a news conference with Oil Minister Hussain al-Shahristani.
After the conference, Shahristani told reporters: "We will not discuss any compensation for these companies (developers of Taq Taq and Tawke) under any circumstances."
His statement could ratchet up tensions between Baghdad and the KRG, which has said it would not pay Norway's DNO International, Toronto-listed Addax Petroleum and Turkey's Genel Enerji, from its own purse. Genel is to merge with Britain's Heritage Oil.
Shahristani said the KRG should pay the firms from the 17 percent of the federal budget it gets each year, an option ruled out by Kurdish natural resources minister Ashti Hawrami.
The Iraqi government at the beginning of the month allowed crude to start being exported from Tawke and Taq Taq.
That seemed to represent a break in a long-running dispute between the Shi'ite Arab-led government in Baghdad and minority Kurds over land, power and Iraq's vast oil resources.
KURDISH DEALS UNRESOLVED
But while giving a nod to exports, Baghdad still refused to recognise the actual development contracts signed with the firms, making it unclear how DNO and the others would be paid.
The central government says all oil deals must be approved by the Oil Ministry and opposes the production sharing agreements favoured by the Kurds. Instead, Baghdad at the end of this month will announce the results of its first tender for fixed-fee service contracts in some of its prized oil fields.
Some lie near the disputed city of Kirkuk, contested by Kurds, Arabs and ethnic Turkmen. Hawrami has said the KRG would reject any deals for those fields if it did not like the terms.
"No one has the right to veto the decisions of the central government, whether those are decisions about oil or about anything else," Shahristani retorted on Wednesday.
Shahristani has defended his record against criticism that Iraq's oil output of 2.3-2.4 million barrels per day remains at below the level it was at before the 2003 U.S.-led invasion.
He faces calls to testify before parliament.
The joint news conference with Dabbagh appeared to be a signal that the government intended to stand by Shahristani as he prepares to announce the results of the first round of service contract tenders over two days on June 29/30.
Dabbagh said he hoped new oil and gas laws -- held up in parliament -- will resolve the issue of oil deals.
In a conciliatory tone that suggested the government's stance could be softening despite its rhetoric, Dabbagh also said the launch of Kurdish crude exports was good for Iraq, which desperately needs money to rebuild after years of war.
"It will narrow the gaps between the different points of views," he said. (Additional reporting by Mohammed Abbas; Editing by Keiron Henderson)

Sold out as soon as I saw the news.

Would have been better going it alone.

Brian Rix couldnt have written a better farce than this.