Heritage Oil Plc

Heritage Oil Plc

August 29, 2013 02:00 ET

Heritage Oil Announces 2013 Interim Results

LONDON, UNITED KINGDOM--(Marketwired - Aug. 29, 2013) -


Heritage Oil Plc (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces the publication of its interim results for the six months ended 30 June 2013. All dollars are US dollars unless otherwise stated.

Operational Highlights

  • Heritage's operations have been transformed by the acquisition of an interest in OML 30, Nigeria
  • OML 30 achieved record gross production, since acquisition, of c.44,000 bopd in August 2013, with a first half average gross production for the licence of 15,327 bopd
  • Net average daily production of 7,197 bopd in the first half 2013. Production, net to Heritage, for the month of July 2013 averaged c.11,000 bopd, over 50% higher than the first half of the year
  • Continued the work programmes in Tanzania through the processing of 2D seismic on Rukwa and the processing and interpretation of seismic across the Kyela licence
  • Expanded the exploration portfolio with the farm-in to two licences in Papua New Guinea ("PNG"); Petroleum Prospecting Licence No:319 ("PPL 319") and Petroleum Retention Licence No:13 ("PRL 13"), which are in a proven hydrocarbon bearing region
  • Acquired first 62 kilometres of seismic across the Tuyuwopi structure in PPL 319, PNG, confirming a drilling location

Corporate Highlights

  • Very strong growth in revenues in the first half of the year with $238 million generated from operations in Nigeria and Russia
  • Cash generated from operations of $135 million in the six months ended 30 June 2013
  • Cash position as at 30 June 2013 of approximately $113 million, excluding $51 million used as part security in respect of OML 30 which was released back to the Company on 22 August 2013 and replaced with alternative security granted by Heritage
  • Successfully completed the refinancing of the bridge loan facility with a five year $500 million Senior Secured Revolving Reserves Based Lending Facility
  • Heritage has sought leave to appeal to the High Court the judgment in the English Commercial Court case brought against the Company and Heritage Oil & Gas Limited, received in June 2013


  • Gross production from OML 30, Nigeria, for the second half of 2013 is expected to average 45,000 bopd, nearly triple that of the first half of the year. This results in a full year expected average for 2013 of c.30,000 bopd
  • Average gross production for 2014 is estimated in the range of 60,000 to 65,000 bopd
  • The increase in production from OML 30 for the remainder of this year will be achieved by the installation of new equipment, working over existing wells and commencing production from the Uzere West field which has been shut-in for nearly two years
  • First exploration drilling in Tanzania and PNG slated for 2014
  • Development drilling of OML 30, Nigeria, scheduled to commence in the summer of 2014

Tony Buckingham, Chief Executive Officer, commented:

"We have started the second half of the year remaining resolutely focused on our existing operations in Nigeria to ensure we extract maximum value from our asset. Our ongoing operations have been transformed with record revenues, profits and cash flows achieved. We expect to see further significant production gains during the remainder of the year from the operational, engineering and comprehensive community programmes undertaken so far. Considerable cash flow can be generated from our OML 30 interests to fund our exploration portfolio in the short term and longer term provide surplus funds for a sustainable dividend stream to our investors. Activity will be focused on delivering production growth over the next twelve months whilst also providing a step up in exploration drilling. The Company is positioned to offer a balanced portfolio with upside from both production and exploration."

Heritage's 2013 Interim Report and Accounts is available on its website at www.heritageoilplc.com.

Copies of these filings may be obtained under Heritage Oil's SEDAR profile at www.sedar.com.

Notes to Editors

  • Heritage is listed on the Main Market of the London Stock Exchange. 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 internationally.

  • Shoreline Natural Resources Limited is a private limited Nigerian company established by Heritage (through a wholly owned subsidiary) and Shoreline Power Company Limited and has a 45% interest in OML 30 with National Petroleum Development Company holding the remaining 55% interest.

  • Heritage has producing assets in Nigeria and Russia and exploration assets in Tanzania, Papua New Guinea, Malta, Libya and Pakistan.

  • For further information please refer to our website, www.heritageoilplc.com.

If you would prefer to receive press releases via email please contact Jeanny So (jeanny@chfir.com) and specify "Heritage press releases" in the subject line.


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 dated 6 August 2012, as supplemented by a supplementary prospectus dated 23 August 2012, 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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