Prospectus re Admission to the Official List - Heritage Oil

HERITAGE OIL CORPORATIONCONSOLIDATED BALANCE SHEETSASSETS31 December 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Non-current assetsAssets held for sale (note 8) ..................... — — 16,962,091 —Intangible exploration assets (note 10) .............. 43,503,704 54,767,332 45,602,140 85,746,870Intangible development costs (note 11) .............. 1,187,371 1,574,039 1,346,858 —Property, plant and equipment (note 12) ............ 25,282,552 32,187,098 25,546,939 59,105,312Other financial assets (note 13) ................... — 914,558 — 4,200,90969,973,627 89,443,027 89,458,028 149,053,091Current assetsAssets held for sale (note 8) ..................... — — 425,412 —Inventories ................................. 251,915 98,921 211,510 79,768Prepaid expenses ............................. 219,222 531,273 515,899 340,402Trade and other receivables (note 14) .............. 1,318,450 9,839,506 664,953 6,455,303Cash and cash equivalents (note 15) ............... 8,583,321 46,861,146 46,851,571 61,894,71110,372,908 57,330,846 48,669,345 68,770,18480,346,535 146,773,873 138,127,373 217,823,275LIABILITIESCurrent liabilitiesTrade and other payables (note 16) ................ 4,438,649 12,715,381 9,396,651 15,781,606Borrowings (note 17) .......................... 248,045 147,720 140,352 160,224Liabilities of disposal group held for sale (note 8) ...... — — 807,208 —4,686,694 12,863,101 10,344,211 15,941,830Non-current liabilitiesBorrowings (note 17) .......................... 7,520,438 63,124,843 62,512,234 144,918,765Derivative financial liability (note 23) ............... — 27,997,140 8,621,068 32,810,103Provisions (note 18) ........................... 434,849 62,322 — 133,274Liabilities of disposal group held for sale (note 8) ...... — — 419,770 —7,955,287 91,184,305 71,553,072 177,862,14212,641,981 104,047,406 81,897,283 193,803,97267,704,554 42,726,467 56,230,090 24,019,303SHAREHOLDERS’ EQUITY ATTRIBUTABLE TOEQUITY HOLDERS OF THE CORPORATIONShare capital (note 19) ......................... 22,854,418 24,580,984 23,508,025 40,910,098Reserves (note 20) ........................... 973,956 2,637,058 1,363,795 35,083,262Retained earnings (deficit) (note 20) ............... 43,876,180 15,508,425 31,358,270 (51,974,057)67,704,554 42,726,467 56,230,090 24,019,303177