Heritage Oil Plc

Heritage Oil Plc

April 30, 2013 02:00 ET

Heritage Oil Announces Results for the Year Ended 31 December 2012

LONDON, UNITED KINGDOM--(Marketwired - April 30, 2013) -


Heritage Oil Plc (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces its results for the twelve months ended 31 December 2012. All figures are in US dollars unless otherwise stated.

2012 Operational Highlights

  • Acquired an interest in OML 30, Nigeria, through Shoreline Natural Resources Limited ("Shoreline"), whose ownership interests are held by Heritage Oil SNR (Nigeria B.V.), a wholly owned subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company ("Shoreline Power")
  • Acquisition provided a material change in proved and probable reserves for Heritage, which RPS Energy Consultants Ltd ("RPS") independently estimate at 412 MMbbls, for interests in Nigeria and Russia, as at 31 March 2012
  • Disposed of interests in the Miran asset, in the Kurdistan Region of Iraq ("Kurdistan"), for $450 million
  • Extended acreage in Tanzania, adding to acreage Heritage believes could be geologically analogous to the Lake Albert Basin, providing the Company with a key advantage in assessing the blocks
  • Commenced the work programme in Tanzania through the acquisition of 2D seismic on Rukwa and the acquisition of a very high resolution gravity survey on Kyela
  • Farmed in to two licences in Papua New Guinea ("PNG"); Petroleum Prospecting Licence 319 ("PPL 319") and Petroleum Retention Licence 13 ("PRL 13"), which are believed to be in an attractive geological fairway

2012 Financial Highlights

  • Since the acquisition of an interest in OML 30, revenues net to Heritage of $234.5 million have been generated
  • Shoreline made a cash payment of $52.5 million, in April 2013, to reduce the bridge loan to $497.5 million
  • Heritage had cash at 31 December 2012 of c.$90 million, excluding amounts relating to the tax dispute of c.$405 million and amounts used as part security in respect of OML 30 of $101 million
  • Average gross production from OML 30 has been 20,350 bopd since the acquisition
  • Production from the interest in OML 30, Nigeria, net to Heritage of 12,350 bopd for November and December 2012 and net production from Russia of 607 bopd for the year


  • Further increases in production from OML 30, Nigeria, with key items of equipment having been identified and ordered
  • Exploration activity to continue in Tanzania following initial promising results and first drilling slated for 2014
  • Extension of 2D seismic programme in PNG with the intention of progressing the Tuyuwopi structure to a drillable prospect in 2014
  • Continue to look for further opportunities to create value

Tony Buckingham, Chief Executive Officer, commented:

"2012 has been a momentous year in the evolution of Heritage. We have enhanced our portfolio through corporate activity, securing a step change in production, reserves and cash flow and selling our gas interests in Kurdistan at an attractive valuation. Our transformation includes entry into new regions of Nigeria and Papua New Guinea and extending our acreage in Tanzania. The Company now has significant producing assets and an enlarged exploration portfolio, providing more balance with both geographic and operational diversification."

The Company's 2012 Annual Report & Accounts have been posted on the Company's website 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 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 internationally.

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

  • All dollars are US$ unless otherwise stated.

  • 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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