Heritage Oil Highlights Financial, Operational Results for '09

Heritage Oil announced the publication of its annual financial report for the twelve months ended December 31, 2009. All figures are in US dollars unless otherwise stated. 

Operational Highlights

  • Discovered the Miran West Field in the Kurdistan Region of Iraq ("Kurdistan")
  • Tests on the Miran West-1 well, Kurdistan, indicate potential for production from the well of 8,000-10,000 bopd
  • Miran West-2 well has intersected significant hydrocarbon-bearing intervals over approximately 1,800 meters
  • The Miran West-2 well is drilling to the deeper Jurassic and Triassic exploration targets which could add significantly to the hydrocarbon potential of the Miran structure
  • Three zones identified in the Cretaceous in Miran West-2 to be tested when exploration drilling is completed
  • Completed the successful Block 1 drilling program in Uganda with the discovery of the world-class Buffalo-Giraffe Field 

Financial Highlights

  • Proposed sale of Ugandan interests for up to $1.5 billion. Expect transaction to complete within the first half of 2010
  • Intention to pay special dividend of between 75p to 100p per share following completion of the sale of the Ugandan interests
  • Sale of non-core holdings in Oman realized cash of $28.4 million
  • Successful placing of 25.4 million new shares raised gross proceeds of $217 million
  • Back costs of $6.7 million were received on the exercise of third party back-in rights for 25% in the Miran Block, Kurdistan
  • Strong balance sheet; cash of $208 million at 31 December 2009, which is stated before the sale of the Ugandan interests and payment of the special dividend
  • Net average daily production of 329 bopd in 2009 


  • Heritage's most diverse work program ever planned in several core areas
  • High impact exploration well in Malta planned for the fourth quarter of 2010
  • Exploration and appraisal drilling on the Miran structure, Kurdistan, to continue in 2010
  • Exploration well planned in Pakistan for the fourth quarter of 2010
  • Production expected to increase in Russia with additional development drilling
  • Examine opportunities to generate further value for shareholders 

Tony Buckingham, Chief Executive Officer, commented, "Operational strength in 2009 coupled with corporate initiatives has placed the Company in a strong position for 2010 and beyond. In the short-term we remain focused on delivering shareholder value through the monetization of our Ugandan interests and through our high impact drilling program in Kurdistan. Wells planned in Malta and Pakistan for the second half of 2010 as well as the ongoing drilling of the Miran West-2 well, ensure that we continue with our diverse, active work programs."