Prospectus re Admission to the Official List - Heritage Oil

6. RESULTS OF CONTINUING OPERATIONS FOR THE YEARS ENDED 31 DECEMBER 2005AND 2006 PREPARED IN ACCORDANCE WITH IFRS6.1 Group ResultsThe following table sets forth the Group’s results for the years ended 31 December 2005 and 2006prepared in accordance with IFRS.Year ended Period ended31 December 12 December2005 2006$ $RevenuePetroleum and natural gas .................................... 841,766 3,938,512Drilling services ............................................ 342,359 2,895,7271,184,125 6,834,239ExpensesPetroleum and natural gas operating ............................. 465,110 723,611Drilling rig operating ........................................ 196,804 2,291,585General and administrative .................................... 5,706,396 8,628,127Foreign exchange losses ...................................... 1,170,906 627,005Depletion, depreciation and amortisation .......................... 738,630 1,351,987Exploration expenditure ...................................... 4,517,411 6,066,97712,795,257 19,689,292Finance income (costs)Interest income ............................................ 330,290 1,336,351Loss on derivative liability relating to convertible bonds ............... — (24,851,295)Other finance costs ......................................... (491,824) (4,642,126)Unrealised gain on other financial assets .......................... — 195,178(161,534) (27,961,892)Loss from continuing operations ................................ (11,772,666) (40,816,945)Gain on disposal of discontinued operations ....................... — 9,200,700Earnings from discontinued operations ........................... 3,510,441 3,248,490Income from discontinued operations ............................ 3,510,441 12,449,190Net loss for the period attributable to equity holders of the Corporation . . . (8,262,225) (28,367,755)The Group completed disposition agreements for the sale of its remaining petroleum and natural gasinterests in the Congo in 2006. The results of operations in the Congo have been classified as results ofdiscontinued operations during the period under review and the related net assets classified as assets andliabilities of discontinued operation.6.2 Petroleum and Natural Gas ProductionYear ended31 DecemberAverage net production 2005 2006Bopd BopdOmanCondensate ...................................................... 69 105LPG ........................................................... 71 64140 169Average net production from the Bukha field, Oman increased from 140 bopd in 2005 to 169 bopd in 2006,due to an increase in the Group’s share of production resulting from higher cost recoveries from thedrilling of the West Bukha well which spud in May 2006. Overall, gross field production of liquids declinedby 11 per cent. to 1,833 bopd in 2006, which was in line with expectations for this mature asset.147