Heritage Oil Interim Results

Corporate Highlights

• Cash position of approximately $35 million, excluding $407 million related to the Ugandan tax dispute and after paying a deposit of $85 million in connection with the Proposed Acquisition
• Publication of independent reserves and resources report that provides significant upside potential for certain existing assets and the future diversified portfolio
• Legal proceedings arising from the sale of the Group's interests in Blocks 1 and 3A in Uganda are ongoing
• Appointment of two new independent Non-Executive Directors

Outlook

• An Extraordinary General Meeting ("EGM") for shareholders to vote on the Proposed Acquisition is scheduled for 30 August 2012, with completion expected later this year
• Heritage plans to undertake an extended well test of the Miran oil bearing reservoirs with the objective of selling between 3,000 to 5,000 barrels of oil per day (gross) into the local market in Kurdistan
• Work programme in Tanzania will continue with the acquisition of 2D seismic scheduled to commence this month
• Further horizontal wells are planned to be drilled in Russia, commencing in the second half of this year

Tony Buckingham (pictured), Chief Executive Officer, commented:

"We are delighted to have entered into an agreement to acquire a significant interest in the transformational OML 30 in Nigeria. OML 30 is expected to provide significant production and be cash flow generative immediately, thereby de-risking Heritage's financial profile.

"The recently published independent reserves report gave an economic valuation of between US$3.4 billion and US$4.1 billion, using a discount rate of 10%, for the current 2P reserves at OML 30 and our assets in Russia, highlighting the underlying value within the enlarged portfolio."