Heritage Oil Plc

Heritage Oil Plc

July 01, 2011 02:30 ET

Heritage-Continuation of Share Buy Back Programme During Black-Out

LONDON, UNITED KINGDOM--(Marketwire - July 1, 2011) -


Heritage Oil Plc (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces that it has put in place a non-discretionary trading plan for the purchase of its Ordinary Shares during a regulatory black-out, including inter alia, until the announcement of the 2011 interim results. The Ordinary Shares to be purchased on behalf of the Company are to be held in treasury.

The trading plan will allow the continuation of the buy back programme during the regulatory black-out. Without putting in place such a trading plan the buy back programme would have had to be halted until the regulatory black-out was lifted.

The buy back programme announced by the Company on 26 April 2011 is in relation to a buy back programme to spend up to $100 million to acquire Ordinary Shares. The Board of Directors (the "Board") considers that the current share price is trading at a significant discount to the intrinsic, underlying value of the Company and does not attribute appropriate value to the Miran assets in Kurdistan nor the Board's belief in the longer term prospects of the Company. The Board, which collectively owns over 30% of the share capital, believes that the buy back of shares is a worthwhile investment and in the best interests of the Company and its shareholders. The continuation of the buy back programme was approved by Heritage shareholders at the Annual General Meeting on 20 June 2011.

The repurchases, to be made under the Company's existing share buy back programme, will be managed during the regulatory black-out by an independent third party which makes its trading decisions in relation to the Company's securities independently of, and uninfluenced by, the Company.

Any purchases pursuant to these arrangements will be effected during the regulatory black-out within certain pre-set parameters and in accordance with the Listing Rules, other applicable law and the limitations of the buy back authority approved at the last Annual General Meeting of shareholders.

Notes to Editors

  • Heritage is listed on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 Index. The trading symbol is HOIL. Heritage has a further listing on the Toronto Stock Exchange (TSX:HOC).
  • Heritage is an independent upstream exploration and production company engaged in the exploration for, and the development, production and acquisition of, oil and gas in its core areas of Africa, the Middle East and Russia.
  • Any purchase made under the buy back will be effected through the facilities of the London Stock Exchange.
  • The buy back programme does not obligate Heritage to acquire any particular amount of shares and may be modified or suspended at any time at the Company's sole discretion, subject to shareholder approval. Once the trading plan is operational Heritage has no influence or discretion over how, when or whether to effect dealings until outside of the regulatory black-out.
  • Heritage has a producing property in Russia and exploration projects in the Kurdistan Region of Iraq, the Democratic Republic of Congo, Malta, Pakistan, Tanzania and Mali.

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Except for statements of historical fact, all statements in this news release – including, without limitation, statements regarding production estimates and future plans and objectives of Heritage – constitute forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves and recoveries; production and operating cost assumptions; development risks and costs; the risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties as disclosed under the heading "Risk Factors" in its Prospectus and elsewhere in Heritage documents filed from time-to-time with the London Stock Exchange and other regulatory authorities. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information.

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