Prospectus re Admission to the Official List - Heritage Oil

6.12 Discontinued OperationsThe operations of the Kouakouala A licence and Noumbi permit in the Congo have been classified asdiscontinued operations in 2005 and 2006.Year ended 31 December2005 2006$ $RevenuePetroleum and natural gas ...................................... 5,444,936 5,116,368Interest ................................................... 41,361 —Other ..................................................... 1,013,010 645,9156,499,307 5,762,283Operating ExpensesOperating .................................................. 991,956 902,776Royalties .................................................. 816,740 767,455Foreign exchange losses ....................................... 69,623 —Depletion, depreciation and amortisation ........................... 1,110,547 843,5622,988,866 2,513,793Discontinued earnings for the year ................................. 3,510,441 3,248,490Production from the Kouakouala field in the Congo declined from 318 bopd in 2005 to 217 bopd in 2006.Revenue from the Kouakouala field decreased from $5,444,936 in 2005 to $5,116,368 due to a 29 per cent.reduction in sales volumes, offset partly by a 32 per cent. increase in the average commodity price from$47.53 in 2005 to $62.53 in 2006.The reduction in revenue resulted in earnings from discontinued operations decreasing from $3,510,441 in2005 to $3,248,490 in 2006.6.13 Net Loss for the YearNet loss totalled $28,367,755 in 2006, compared to a net loss of $8,262,225 in 2005. Net basic and dilutedloss per HOC Common Share was $(1.29) in 2006, compared to a net basic and diluted loss perHOC Common Share of ($0.38) in 2005.150