Prospectus re Admission to the Official List - Heritage Oil

Summary Consolidated Cashflow Statements (for the nine-month period ended 30 September 2007 andfinancial years 2005 and 2006 prepared in accordance with IFRS and audited and for the nine-monthperiod ended 30 September 2006 prepared in accordance with IFRS and unaudited)Year endedNine-month periods31 December ended 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Cash used in operating activities ............ (7,854,323) (12,737,451) (8,331,393) (7,212,661)Cash used in investing activities ............ (11,946,720) (28,823,833) (12,074,902) (53,535,576)Cash provided by financing activities ......... 9,020,147 58,031,186 57,356,469 75,080,072Cash provided by discontinued operations ..... 4,313,817 21,324,969 1,009,595 —(Decrease) increase in cash and cashequivalents .......................... (6,467,079) 37,794,871 37,959,769 14,331,835Cash and cash equivalents—beginning of period 16,235,523 8,583,321 8,583,321 46,861,146Foreign exchange (loss) gain on cash held inforeign currency ...................... (1,185,123) 482,954 308,481 701,730Cash and cash equivalents—end of period ..... 8,583,321 46,861,146 46,851,571 61,894,711Summary Consolidated Income Statements (for financial years 2005 and 2004 prepared in accordancewith Canadian GAAP and audited)2004 2005$ $Net revenue ............................................... 6,596,982 8,013,722Net expenses ............................................... (4,501,727) (11,813,535)Gain on sale of property and equipment ........................... 26,269,113 —Net earnings (loss) .......................................... 28,364,368 (3,799,813)Retained earnings—beginning of year ............................. 24,028,812 52,434,857Other .................................................... 41,677 (740,879)Retained earnings—end of year ................................. 52,434,857 47,894,165Net earnings (loss) per share:Basic .................................................... 1.33 (0.18)Diluted ................................................... 1.31 (0.18)134