Prospectus re Admission to the Official List - Heritage Oil

HERITAGE OIL CORPORATIONCONSOLIDATED INCOME STATEMENTSNine-month periods endedYear ended 31 December30 September2005 2006 2006 2007$ $ $ $(Unaudited)RevenuePetroleum and natural gas ................ 841,766 3,938,512 2,984,091 2,843,053Drilling services ........................ 342,359 2,895,727 2,491,339 —1,184,125 6,834,239 5,475,430 2,843,053ExpensesPetroleum and natural gas operating ......... 465,110 723,611 516,868 1,814,335Drilling rig operating .................... 196,804 2,291,585 1,912,123 38,360General and administrative (note 7) ......... 5,706,396 8,628,127 5,446,010 31,331,031Foreign exchange losses (gains) ............ 1,170,906 627,005 449,507 (76,493)Depletion, depreciation and amortisation ..... 738,630 1,351,987 948,477 1,306,131Exploration expenditure (note 1 e) .......... 4,517,411 6,066,977 3,373,024 4,937,595Impairment of property, plant and equipment(note 12) ........................... — — — 1,799,76212,795,257 19,689,292 12,646,009 41,150,721Gain on disposal of subsidiaries (note 9) ..... — — — 1,077,132Finance income (costs)Interest income ........................ 330,290 1,336,351 985,353 1,243,305Loss on redemption of liability component ofconvertible bonds (note 17) .............. — — — (7,155,622)Loss on derivative financial liability relating toconvertible bonds (note 23) .............. — (24,851,295) (5,483,503) (17,350,077)Other finance costs (note 5) ............... (491,824) (4,642,126) (3,266,497) (7,052,903)Unrealised gain on other financial assets(note 13) ........................... — 195,178 — 63,351(161,534) (27,961,892) (7,764,647) (30,251,946)Loss from continuing operations ........... (11,772,666) (40,816,945) (14,935,226) (67,482,482)Gain on disposal of discontinued operations(note 8) ............................ — 9,200,700 — —Earnings from discontinued operations (note 8) 3,510,441 3,248,490 2,417,316 —Income from discontinued operations ........ 3,510,441 12,449,190 2,417,316 —Net loss for the period attributable to equityholders of the Corporation .............. (8,262,225) (28,367,755) (12,517,910) (67,482,482)Net loss per share from continuing operationsBasic and diluted ....................... (0.54) (1.86) (0.68) (3.02)Net earnings per share from discontinuedoperationsBasic and diluted ....................... 0.16 0.57 0.11 —Net loss per shareBasic and diluted ....................... (0.38) (1.29) (0.57) (3.02)178