Prospectus re Admission to the Official List - Heritage Oil

11.2 The year ended 31 December 2004 and conversion from Canadian GAAP to IFRSThe Consolidated Balance Sheet as at 1 January 2005 and Consolidated Balance Sheet and ConsolidatedIncome Statement for the year ended 31 December 2005 and conversion from Canadian GAAP to IFRSThe following tables are based on information extracted from the audited financial statements at31 December 2004 and for the year ended 31 December 2005 and reconcile the Consolidated BalanceSheet and Consolidated Income Statement reported under Canadian GAAP and as restated under IFRS:(a) At the date of transition to IFRS at 1 January 2005:Effect ofPrevious transition toNotes Canadian GAAP IFRS IFRS$ $ $AssetsNon-current assets:Intangible exploration assets ............ (b),(c) — 32,725,642 32,725,642Intangible development costs ............ 1,013,012 — 1,013,012Property, plant and equipment .......... (a),(b),(d),(g) 54,083,097 (32,306,191) 21,776,90655,096,109 419,451 55,515,560Current assetsInventories ......................... (d) 94,483 24,976 119,459Prepaid expenses .................... 272,168 — 272,168Trade and other receivables ............. 8,920,963 — 8,920,963Cash and cash equivalents .............. 16,235,523 — 16,235,52325,523,137 24,976 25,548,113Total Assets ........................ 80,619,246 444,427 81,063,673LiabilitiesCurrent liabilitiesTrade and other payables .............. 6,397,247 — 6,397,2476,397,247 — 6,397,247Non-current liabilitiesProvisions ......................... 328,553 — 328,553Total Liabilities ..................... 6,725,800 — 6,725,800Net Assets ......................... 73,893,446 444,427 74,337,873EquityShare capital ....................... 21,434,168 — 21,434,168Reserves .......................... 24,421 — 24,421Retained earnings .................... (a),(c),(d),(g) 52,434,857 444,427 52,879,284Total Equity ........................ 73,893,446 444,427 74,337,873163