Heritage Oil Up Slightly on Results

Shares in Heritage Oil, which is actively drilling in Iraqi Kurdistan, were up 1.3% this morning following the announcement of interim results:

HERITAGE OIL ANNOUNCES 2010 INTERIM RESULTS

Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, announces the publication of its interim results for the six months ended 30 June 2010.

Operational Highlights

· Miran West-2 well, Kurdistan Region of Iraq (“Kurdistan”), is drilling ahead close to the base of the Jurassic section where initial results from wireline logging, shows and sampling indicate the presence of hydrocarbon-bearing fractured reservoir intervals

· It was previously announced on 7 April 2010 that the well had intersected significant hydrocarbon-bearing intervals over approximately 1,800 metres in the Cretaceous section

· In addition to intervals already secured behind casing in the Cretaceous section of the well, which are designated for testing, further intervals have been identified for testing in the Jurassic after reaching total depth

· The well is drilling ahead at 3,468 metres and testing of these numerous intervals will commence once total depth, estimated at 4,600 metres, has been reached in the Triassic

· 336 kilometres of seismic was acquired during the first quarter of 2010 on the Zamzama North Licence, Pakistan

· Net average daily production of  583 bopd in the first half of 2010

Financial Highlights

· Completed the sale of the Ugandan assets in July 2010 for which Tullow Uganda Limited (“Tullow”) paid $1.45 billion in cash (including the contractual settlement of $100 million), of which Heritage received and retained $1.045 billion

· Remaining proceeds have been set aside due to an assessment by the Uganda Revenue Authority (“URA”) of tax payable, which Heritage is disputing. Heritage deposited $121,447,500 with the URA and $283,447,500 has been retained in escrow

· Special dividend of 100 pence per share declared on 2 August 2010 and paid on 27 August 2010 to shareholders on the register on 13 August 2010

· Strong balance sheet with cash of approximately $700 million, excluding amounts related to the tax dispute, stated after the receipt of $1.045 billion and the payment of the special dividend

Outlook

· Full results from the Miran West-2 well expected late September/early October

Comments are closed.