Heritage Oil Down 4% Following Final Results

Shares in Heritage Oil Plc (LSE: HOIL) fell 4% this morning following the announcement of its results for the twelve months ended 31 December 2010.

All figures are in US dollars unless otherwise stated.

2010 Operational Highlights

·   Discovered the largest gas field in Iraq in the last 30 years

·   Highly productive Jurassic reservoir intervals tested in the Miran West-2 well at a restricted cumulative flow rate of over 75 million cubic feet per day (“MMscfd”)

·   Estimated gross P90-P50 in-place volumes of 6.8-9.1 Trillion Cubic Feet (“TCF”), with a P10 upside of 12.3 TCF for Miran West

·   Management estimates Heritage has mean net risked contingent and prospective resources in Miran West and Miran East of 744 million barrels of oil equivalent (“MMboe”), based on a 75% working interest

·   Miran development options being considered with first export production targeted for 2015 using planned regional infrastructure

·   Achieved nearly a twelvefold increase in contingent resources from 53 MMbbls to 605 MMboe following the successful testing of hydrocarbons

·   Completed 3D seismic acquisition offshore Tanzania; data currently being processed

·   Further development work in Russia, production increased 65% in 2010

2010 Financial Highlights

·   Completed the disposal of interests in Block 3A and Block 1, Uganda, (the “Ugandan Assets”) for which Tullow Uganda Limited (“Tullow”) paid a cash consideration of $1.45 billion, including $100 million for a contractual settlement, and Heritage received and retained $1.045 billion

·   Cash at year end of $598 million

·   Special dividend of 100 pence per share paid in August 2010

Outlook

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