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

"Heritage Oil Plc (LSE: HOIL) provides the market with information in relation to the Taq Taq oil field in the Kurdistan Region of Iraq ("Kurdistan") and an update on the proposed acquisition of Genel Energy International Ltd ("Genel").

Heritage understands that since 14 October 2009, all production from the Taq Taq oil field has been diverted into the local market. Production for export has ceased, in coordination with the other operators in the region, and export production is not expected to recommence until a payment mechanism is in place. Exports commenced on 1 June 2009, so far no revenue has been received for any exported production and none is expected until there is an agreement on the payment mechanism between the Federal Government of Iraq and the Kurdistan Regional Government.

According to Genel, the current gross production capacity of the Taq Taq oil field is approximately 35,000 bopd which is expected to increase to approximately 60,000 bopd by the end of December 2009 as new production facilities are completed. Average gross production for the Taq Taq oil field in September 2009, according to Genel, was 29,580 bopd, of which approximately 52% was sold into the domestic market, in part driven by the opening of the Erbil refinery in July.

Elections took place in Kurdistan at the end of July and a new government is in the process of being formed. A caretaker government is currently in place whilst the new Prime Minister forms his government, which is expected to be completed by early November.

In addition, Heritage understands the FSA investigation previously disclosed continues and that the parties concerned are assisting with the FSA's enquiries. Heritage confirms that discussions with Genel are continuing with the terms of the merger nearing formal agreement. Both sides remain committed to successfully completing the proposed transaction, however the transaction is taking longer to conclude than had originally been estimated. We hope the implementation agreement can be signed and the prospectus published before the end of the year."

i sold out of these on thursday/friday, more as a precaution against the markets turning sour in general ..... am sure i shall buy back in in due course

EVOLUTION COMMENTS: "The risk for E&P investors is that a company decides to take on complicated and expensive development projects and destroys value in the process. Heritages exit from Uganda prior to this stage then is strategically sound and has been achieved at a fair price. In addition, the deal demonstrates the undervaluation the market has been applying to Heritages Kurdistan interests. At 580p/share we believe their value is worth over 3x the implied deal value of just 186p/share
DETAILS Heritage has agreed to sell its 50% interests in Block 1 & 3A in the Lake Albert Basin to Eni for $1.35bn in cash and a deferred consideration of $150m subject to certain criteria. The deal has been backed by the Ugandan government and is expected to complete in 1H 2010. The funds will be used to progress development and exploration of the remaining assets, make selective acquisitions with a special dividend of between 75p-100p also under consideration. Talks with Genel have been terminated.

VALUATION AND RECOMMENDATION We retain our target price of 900p."

Article in this morning's Daily Mail....rumour that ENI the Italian Oil giant to buy all of Heritage's Ugandan oil assets.....with completion as soon as today !.

market says hahaha!

To get that out to print they must have known about it a lot earlier than anybody else,......lot of changes in the Kurdistan oil world at the moment.

GKP, HOIL, ans SEY should all be valued at least 50% - 75% more, if they did not have to tolerate the idiots in Bagdad. Maybe the Bagdad Ministers etc are waiting for and expecting some " baksheesh ", which as we all know is the usual thing for sweetening deals in the middle east ?
I know I have worked there and paid it out on behalf of the company I worked for.

see GKP post

If they are going to return cash to shareholders : it will be one hell of a dividend....with tax to pay on it....better of with a share buyback or a takeover bid for Gulfkeystone.

I'm always happy to pay tax - the more I can pay the better.

Yes....but the sp will drop when it goes exdividend.....and many a time the sp takes ages to come back......if I was HOIL : I would retain some serious working capital, it will be needed.

long article intoday's FT that is well worth reading .... i assume it's in london FT as have only seen the international edition here

Heritage Oil & Gas is selling its 50% interest in Blocks 1 and 3A in Uganda to Eni International.
Heritage will receive $1.35bn in cash and a further contingent, deferred consideration of $150m in cash or an interest in a mutually agreed producing oil field independently valued at a similar amount.

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TLW have pre-emption rights on these blocks and it will be interesting to see if they exercise same .... they merely(!) have to match ENI's price

The Iranians have taken a well from Iraq, down in the south.....perhaps they could pretend to be at war and get the price of oil rocketing once again.

the story seems to be true, but it does rather feel like "Small earthquake in Chile; few injured" ..... though oil price is up a bit, it's hardly dramatic .... ditto the rise in gold, considering its recent retrenchment ..... and Dow has shrugged its shoulders

the "kids" in Iran are obviously trying to provoke a reaction to divert attention away from their internal problems, you really can't take this bunch of "gangsters" seriously.

This is looking quite good and I presume that an update is not far away.

Tremendous news on 2 fronts today !...why the sp knock down ?.

prob because the miran2 well extension will not be done until later this year, so immediate excitement is now over

the gov't approval of their sale is no news

Ridiculous drop....more oil than predicted plus 10000 barrels production per interval, deeper drilling for more discoveries plus Ugandan sale to be completed within 2 months and the stock slumps....I don't get it....