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