heritage oil OML 30 highlights. rights issue terms yet to be revealed.

Highlights

OML 30, located onshore in the delta in Nigeria, includes eight producing fields and associated infrastructure, including a segment of the 850,000 bopd capacity Trans Forcados pipeline

The Proposed Acquisition represents a significant opportunity for Heritage to achieve a material change in production and reserves

OML 30 is currently averaging gross production of c.35,000 bopd, increasing Heritage’s net production from 605 bopd to c.11,350 bopd

Management estimates that OML 30 has gross proved and probable reserves of 707 mmbbls of oil and 2.5 Tcf gross reserves of gas

Net proved and probable reserves increase 356% from 61 mmbbls to a management estimated 278 mmbbls

Potential to ramp up production of OML 30 in the short term by refurbishing and maintaining existing infrastructure

Cash consideration of US$850 million, net of costs, for Shoreline to purchase a 45% participating interest in OML 30 and related assets under the corresponding joint operating agreement

OML 30 expected to be cash generative immediately following completion of the Proposed Acquisition (“Completion”)

First flush – Approx $2.70 per boe is being paid – a good price without a doubt. With a new total of 278m bbls of reserves within the Group, plus the Miran gas reserves, assuming a 3 for 4 rights around the current price then an opening price closer to 200p looks a cert. We will dial in to the conf call and report thereafter.