Prospectus re Admission to the Official List - Heritage Oil

6.14 Capital ExpendituresThe following table sets out capital expenditures for the years ended 31 December 2005 and 2006:Year ended Period ended31 December 12 December2005 2006$ $UgandaDrilling ................................................... 2,466,385 11,999,638Seismic ................................................... 1,059,395 —Other .................................................... 2,123,457 1,665,2985,649,237 13,664,936OmanDrilling ................................................... — 3,209,500Seismic ................................................... — 419,942Other .................................................... 398,316 698,157398,316 4,327,599RussiaSeismic ................................................... — 1,345,524Acquisition of licence interest in 2005 and other ..................... 6,080,697 11,236,3316,080,697 12,581,855OtherUndeveloped land ........................................... – 317,786Drilling equipment ........................................... 638,613 851,351Corporate ................................................. 579,263 1,120,0761,217,876 2,289,213Total from continuing operations ................................ 13,346,126 32,863,603Congo (discontinued operations):Drilling ................................................... 1,683,333 1,785,004Seismic ................................................... — 296,898Other .................................................... 1,007,595 2,824,8522,690,928 4,906,754Total capital expenditures ...................................... 16,037,054 37,770,357The Kingfisher-1 well in Uganda was spud in August 2006. This deviated well was drilled to a total depth of3,195 metres and was completed in March 2007.Development of the Zapadno Chumpasskoye field, which was acquired in November 2005, commenced in2006 with the acquisition of a 200 km 2D seismic survey, civil works were undertaken, an operating officewas established in Nizhnevartovsk and the existing well #226 was re-entered culminating in a preliminaryfree-flow test that produced 124 bbls of oil over a five hour period.In Oman, the West Bukha-2 appraisal well in Block 8 in Oman was drilled to a total depth of 4,345 metresand tests produced a combined gross flowrate from two zones of approximately 12,750 bopd and26 MMscf/d of gas.Discontinued operations in 2005 and 2006 relate to the Group’s interests in the Congo which weredisposed of in 2006. Cash from discontinued activities of $21,324,969 in 2006 included net proceeds of$27,052,515, offset by a reduction in working capital and disposal of property, plant and equipment.151