Heritage Oil Plc
TSX : HOC
LSE : HOIL

Heritage Oil Plc

June 14, 2013 09:26 ET

Heritage Oil Plc ("Heritage" or the "Company") Judgment in Commercial Court Case

LONDON, UNITED KINGDOM--(Marketwired - June 14, 2013) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Heritage Oil Plc (TSX:HOC)(LSE:HOIL), an independent upstream exploration and production company, announces that judgment in the English Commercial Court case brought against Heritage and its wholly owned subsidiary Heritage Oil & Gas Limited by Tullow Uganda Limited ("Tullow") has been received today.

The Honourable Mr Justice Burton of the High Court in London has today, in relation to the $313 million contractual dispute between Tullow and Heritage, awarded judgment in favour of Tullow. Heritage's counterclaim was dismissed.

The Company strongly disagrees with the decision. It maintains the view that Tullow's original payments to the Uganda Revenue Authority were commercially motivated rather than as the result of a valid legal obligation.

Heritage will perform a robust and exhaustive evaluation of its legal options with a view to appealing the judgment. Any appeal process will be commenced within the prescribed time period of 21 days from the date of judgment.

It is apparent from the judgment that Burton J. was not ruling on the fundamental legality of the imposition of the tax by the Uganda Revenue Authority, and it has no bearing on the outcome of the international arbitration proceedings against the Ugandan Government in London, which are ongoing. Appeals to the Ugandan High Court in respect of the tax assessments are pending. Heritage's position remains, based on comprehensive advice from leading counsel, legal and tax experts, that this retrospectively placed tax, with no precedent, is not valid.

The $283.4 million placed in escrow in July 2010 by Heritage in relation to any potential Ugandan tax liability remains in escrow in London held by Standard Chartered Bank. Additionally, in July 2010, Heritage deposited $121.5 million with the Ugandan Government and so substantially all of the cash has been reserved and does not impact on the Company's current cash position.

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 in its core areas of Africa, the Middle East and Russia.
  • Heritage has producing assets in Nigeria and Russia and exploration assets in Malta, Tanzania, Papua New Guinea, Pakistan and Libya.
  • All dollars are US$ unless otherwise stated.

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.

FORWARD-LOOKING INFORMATION:

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.

Contact Information

  • Heritage Oil Plc
    Tony Buckingham
    CEO
    +44 (0) 1534 835 400

    Heritage Oil Plc
    Paul Atherton
    CFO
    +44 (0) 1534 835 400
    info@heritageoilplc.com

    Heritage Oil Plc
    Tanya Clarke
    Investor Relations
    +44 (0) 20 7518 0838
    ir@heritageoilplc.com

    Media Enquiries
    Andrew Benbow
    +44 (0) 20 7920 2344

    Media Enquiries
    Ann-marie Wilkinson
    +44 (0) 20 7920 2344

    Media Enquiries
    Chris McMahon
    +44 (0) 20 7920 2344

    Canada
    Cathy Hume
    +1 416 868 1079 x231
    cathy@chfir.com

    Canada
    Jeanny So
    +1 416 868 1079 x225
    jeanny@chfir.com