News

June 10, 2009

Heritage Oil & Gas Signs MoU To Create Major Anglo-Turkish Oil Group

Shares in Heritage Oil & Gas, which have trebled since the start of the year, gained another 18 pence to stand at 603 pence on Tuesday after a trading suspension was lifted. This came as the London-listed firm announced an MoU with privately-owned Turkish firm Genel Enerji, a move that will lead to a reverse takeover of Heritage to create an Anglo-Turkish oil company with assets in Kurdistan, Iraq and Uganda. The enlarged company could become a heavyweight contender in the independent E&P sector, with likely proved and probable reserves of 300 million barrels but with upside running into the multi-billions of barrels.

The buyout will be paid for wholly through the issue of 260 million new shares in Heritage to Genel shareholders, who will then own 50 per cent of the new firm, to be called HeritaGE Oil.  The enlarged firm should have the financial capacity to monetize a very promising slate of projects, including the Taq Taq and Miran assets in Kurdistan and the Lake Albert discoveries in Uganda.  What’s more, significant near-term cash flows are expected following the start up of oil exports from...