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

Commencement of Drilling

Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, announces that it has commenced drilling the Miran West-4 appraisal well in Kurdistan.

Highlights

· The Miran West-4 appraisal well has commenced drilling on the Miran Block in Kurdistan

· This is the fifth well to be drilled on the large Miran field and the fourth on the Western structure.

· The well is designed to further appraise the Upper Cretaceous oil reservoir

· The Company intends to test and evaluate several intervals as the well is drilled to a target depth of c.1,550 metres

· It is planned to drill a c.500 metre horizontal section in the oil bearing reservoir in order to maximise penetration of fractures

· The well is expected to take approximately three and a half months to drill and test

· On completion of the drilling, Heritage plans to undertake an extended well test of these oil bearing reservoirs selling between 3,000 to 5,000 barrels of oil gross per day into the local market

Crazy prices for some of these oil companies...lots of them ...way, way undervalued.....hold and wait...and add here and there.....and patience.....recovery...big recovery...this autumn....

From Sunday Telegraph - Emily Gosden:

Heritage Oil has agreed to buy a parcel of Nigerian assets from Royal Dutch Shell and its partners for $850m (£541m), as it seeks to build a major presence in the country.

The FTSE 250 company, led by chief executive Tony Buckingham, has formed a Nigerian joint-venture called Shoreline to buy a 45pc stake in a major onshore oil producing block known as OML 30. Shell owned 30pc of the block, with Total and ENI as minority partners. The majority 55pc stake is held by the Nigerian National Petroleum Corporation.

The deal, Heritage’s first foray into the country, will significantly increase its production, from 605 barrels of oil per day (bpd) currently to 11,354bpd. Heritage’s management believes production can be increased further.

The pending acquisition will also represent a more than three-fold increase in Heritage’s proven and probable reserves, to 278m barrels.

Mr Buckingham said the deal would be “transformational” for Heritage.

The deal will be funded through a $550m bridge finance loan from Standard Bank, and a subsequent $370m rights issue. The transaction is classified as a reverse takeover under listing rules, as Heritage’s market value on Friday night was £318m, and as such will need shareholder approval.

Shares will be suspended on Monday, pending an extraordinary general meeting.

RNS Number : 9993H
Heritage Oil PLC
19 July 2012



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, SOUTH AFRICA AND JAPAN





19 July 2012



Heritage Oil Plc

("Heritage" or the "Company")



HERITAGE ANNOUNCES PUBLICATION OF COMPETENT PERSONS

REPORT INCLUDING ANALYSIS OF OML 30, NIGERIA



Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, is pleased to announce the publication of an independent Competent Person's Report ("CPR") compiled by industry specialists RPS Energy Consultants Limited ("RPS"). On 29June 2012, Heritage announced the proposed acquisition of a major interest in Oil Mining Lease 30 in Nigeria ("OML 30") and this CPR has been commissioned to provide independent reserve and resource information and a valuation of OML 30, together with an update on certain existing assets in Heritage's portfolio.



The range of reserves and resources is as at 31 March 2012 and is based on the data and information available up until that date. The CPR assumes that the acquisition of OML 30 completes on 1 September 2012. All volumes are stated net of royalties unless otherwise stated.



Highlights:



· OML 30, Nigeria;

o Gross Proved plus Probable reserves(1): 1,114 million barrels, 58% higher than management estimates as set out in the announcement issued by the Company on 29 June 2012

o Proved plus Probable net entitlement reserves to Heritage: 396 million barrels of oil

o Economic valuation of Proved plus Probable reserves estimated at between US$3,089 million and US$3,789 million, depending on the income tax scenario (post-tax, net Heritage share, assuming a 10% discount rate)

· Zapadno Chumpasskoye Field, Russia;

o Proved plus Probable net entitlement reserves to Heritage: 65 million barrels of oil

o Economic valuation of Proved plus Probable reserves estimated at $336 million (post-tax, net Heritage share, assuming a 10% discount rate)

· Miran Field, Kurdistan Region of Iraq ("Kurdistan");

o Contingent Resources - mean estimate of Heritage working interest of 56.25%, gross of royalty: 366 million barrels of oil equivalent, comprising 53 million barrels of oil and condensate and 1,815 billion cubic feet of gas, resulting in a mean net entitlement volume to Heritage of 136 million barrels of oil equivalent

o 2C estimate of net entitlement to Heritage of Contingent Resources: 130 million barrels of oil equivalent, comprising 15 million barrels of oil and condensate and 669 billion cubic feet of gas based on Heritage interest of 56.25%

o Prospective Resources - mean(2) un-risked estimate of working interest of 56.25% to Heritage, gross of royalty: 142 million barrels of oil equivalent, comprising 96 million barrels of oil, 256 billion cubic feet of gas and condensate of 3.1 million barrels



(1) Full field (100% basis) gross of royalty

(2) The mean is a statistical aggregate which assumes that each of the three prospects is successful. The probability of this occurring is 3% for the oil and 12% for the non-associated gas and condensate.



Tony Buckingham, Chief Executive Officer, commented:



"This independent report, assessing OML 30 and certain existing assets, highlights the strength of our current portfolio and the transformational nature of the proposed acquisition of OML 30 which creates shareholder value and is cash generative upon completion. The economic valuation of between US$3.4 billion and US$4.1 billion given for the current 2P reserves at OML 30 and our assets in Russia underlines the significant opportunity we have to create substantial value for shareholders. There is considerable upside in OML 30 which has not been assessed in the CPR, notably gas in the licence, estimated by management at 2.5 TCF, as well as undeveloped reservoirs and behind pipe reserves in some of the developed reservoirs that have not currently been targeted with new wells. These additional resources could provide further significant upside which has not been quantified in the CPR. Also, significant value exists for the Contingent and Prospective resources within the Miran Field that has not been estimated in this report due to the classification as resources."

.

You'd think we'd see a rally from this news though once the suspension is lifted.

StockMarketWire.com
Heritage Oil is aiming to raise $370m through a rights issue to help pay for the acquisition of a 45% interest in OML 30 in Nigeria.

Shoreline Natural Resources Limited - a special purpose private Nigerian company formed between a subsidiary of Heritage and a local Nigerian partner, Shoreline Power - has agreed to pay $850m for the interest in the producing oil mining lease.

The proposed acquisition will be financed by a $550m secured bridge finance facility, and the rights issue.

Heritage expects to publish a prospectus in connection with the rights issue today (6 August).

NOTICE OF RESTORATION OF LISTING TO THE OFFICIAL LIST
7/08/2012 7:30 AM

RESTORATION - Heritage Oil PLC

http://www.moneyam.com/action/news/showArticle?id=4430207

Heritage (LSE: HOIL), an independent upstream exploration and production company, and its wholly owned subsidiary, Heritage Energy Middle East Limited ("HEME"), announce signed binding agreements with Genel Energy plc ("Genel") for: (i) the sale of a 26% interest in the production sharing contract relating to the Miran Block (the "Miran PSC") in the Kurdistan Region of Iraq ("Kurdistan") and corresponding interest in the related joint operating agreement (the "Miran JOA") to Genel for cash consideration of $156 million (the "Sale"); and (ii) a $294 million exchangeable loan to be provided by Genel to the Company contemporaneously with completion of the Sale (the "Loan").

The Sale is expected to be completed, and the Loan drawn down, on or before Wednesday, 22 August 2012.

Sold this morning at very slightly better than break even.

UPDATE ON OPERATIONS

Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, today holds a Capital Markets Day for analysts and institutional investors where it will provide an update on its operations and work programme for 2013. No new material information will be given and the presentation will be posted on the website later today.

- ends -

Result of court case against Tullow Oil and the Government of Uganda should be decided soon.

sp falling have they lost the court case?

according to Uganda media HOIL lost the case. awaiting RNS from HOIL.

RNS HOIL states case continues and awaits final determination.

hali - is that good, bad or neutral for TLW?

cynic difficult to say at this stage, you never know with these type of cases,perhaps better to settle out of court.

not sure who was suing whom and for what :-)

Adds weight that TLW will also lose their case. This is all to do with Ugandan CGT on assets sold, and tax not paid.

Tullow is suing Heritage, its former partner in Uganda, for $313mn in the commercial court in London. It follows the $1.45bn purchase in July 2010 by Tullow of Heritage’s share of oil licenses at Lake Albert.

As soon as Tullow handed the purchase money over, the problems began. Heritage paid no ‘income tax’ on the cash it received. It left Uganda, arguing that the Production Sharing Agreements made no mention of capital gains tax and that there was no basis for the Government to claim $434mn from the transaction.

Heritage says in its defence that Tullow simply made the fundamental error of paying $1.45bn for assets which were worthless until the government of Uganda actually approved the deal. Once the tax dispute arose, the government paused the entire process, demanded tax, secured $121m of the total from Heritage as a ‘deposit’ (subject to arbitration) and turned its attentions to getting the rest from Tullow, who remained in the country and desperately needed the licenses it had bought to be turned into ‘production’ contracts.

http://platformlondon.org/2011/11/28/tullow-sues-heritage-uganda-pays-the-price-court-papers-published-for-300m-oil-trial/

StockMarketWire.com
Heritage Oil reports a transformational increase in production and revenue in the first quarter following the acquisition of an interest in the world class OML 30 licence in Nigeria.

Revenues rose to $236.2m - up from $2.3m last time - of which $234.5m was from the interest in Shoreline Natural Resources Limited, Nigeria, and $1.7m was from the interest in the Zapadno Chumpasskoye Field, Russia.

Production for the first quarter, net to Heritage, averaged 7,373 barrels of oil per day compared with 605 bopd a year ago.

Chief executive Tony Buckingham said: "Production from OML 30 is increasing back to previous levels and we expect to see gross production at 35,000 bopd within a month. Further substantial gains are anticipated in the second half of this year through optimising current facilities and improving the gas lift system.

"Our acquisition of an interest in OML 30 remains the largest upstream onshore asset transaction in sub-Saharan Africa on a 2P basis and positions Shoreline as one of the largest indigenous oil companies in Nigeria. Activity across the exploration portfolio has also increased with active work programmes in Tanzania and Papua New Guinea."