Prospectus re Admission to the Official List - Heritage Oil

5.2 Petroleum and Natural Gas ProductionThe Group’s net production in bopd from continuing operations is analysed below.Nine-month periodsended 30 SeptemberAverage net production 2006 2007Bopd Bopd(Unaudited)OmanCondensate ................................................... 108 89LPG........................................................ 64 58172 147RussiaOil......................................................... — 175Total ......................................................... 172 322Net daily condensate and LPG production from the Bukha field, Block 8, Oman varied between 140 and172 bopd during the period under review. Overall, gross field production of liquids declined by 14 per cent.to 1,618 bopd from the beginning to the end of the period, which was offset partly by an increase in theGroup’s share of production resulting from higher cost recoveries from the drilling of the West Bukha wellwhich spud in May 2006.Crude oil production from the Zapadno Chumpasskoye field in Russia commenced on 14 May 2007 andaveraged 362 bopd in the three months ended 30 September 2007.5.3 Petroleum and Natural Gas RevenuePetroleum and natural gas revenue may be analysed as follows.Nine-month periods ended30 September2006 2007$ $(Unaudited)OmanCondensate ................................................ 2,676,230 1,556,610LPG..................................................... 307,861 301,904RussiaOil ...................................................... — 984,5392,984,091 2,843,053Petroleum and natural gas revenue from Oman in the nine-month period ended 30 September 2007, of$1,858,514 was 38 per cent. lower than the same period in 2006 as a result of the periodic sale ofcondensate from inventory. Condensate production from the Bukha field, Oman was sold to SumitomoCorporation during the period under review.Petroleum and natural gas revenue from Russia from the sale of 46,688 bbls of crude oil in the nine-monthperiod ended 30 September 2007 was $984,539.There was no third party drilling revenue in the nine-month period ended 30 September 2007 comparedwith $2,491,339 in the same period in 2006. Drill rig revenue is generated from the Group’s 50 per cent.share of Eagle Drill’s sales to third parties. In 2006, Eagle Drill was the drilling contractor for the operatorof Block 2 in Uganda.5.4 Operating ExpensesPetroleum and natural gas operating costs in the nine-month period ended 30 September 2007 were$1,814,335 as compared to $516,868 for the same period in 2006.142