Heritage Oil Shares Jump on Sale to Genel

By John Lee.

Shares in Heritage Oil closed up 12.3% on Tuesday following the announcement that it will sell part of its Miran Block in Kurdistan and borrow money from Genel Energy to raise $450 million to fund oilfield purchases in Nigeria.

The comany will sell a 26 percent stake in the block to Genel and will take a $294 million loan from the company.

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

"We believe this sale and loan financing crystallises significant value for shareholders, demonstrating our ability to invest in and monetise assets at an appropriate stage. The proceeds provide significant financial flexibility allowing us to fund the proposed acquisition of OML 30 without any rights issue or other additional capital requirement from, or potential dilution to, our existing shareholders."

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