Prospectus re Admission to the Official List - Heritage Oil

7 Staff costsThe average number of employees (including executive directors) employed by the Group during theperiod, analysed by category was:Nine-month periodsYear endedended31 December 30 September2005 2006 2006 2007(Unaudited)Canada .................................... — — — 1Switzerland ................................. 2 3 4 3Russia .................................... — 25 25 41United Kingdom ............................. 10 13 13 14Uganda ................................... 7 21 21 21Kurdistan region of Iraq ....................... 6 7 7 5South Africa ................................ 3 3 3 4Total ...................................... 28 72 73 89The aggregate payroll expenses of those employees was as follows:Nine-month periods endedYear ended 31 December30 September2005 2006 2006 2007$ $ $ $(Unaudited)Salaries and other short-term benefits ........ 5,299,861 9,726,603 5,253,099 6,481,888Share-based compensation ................ 898,121 1,765,681 441,254 31,129,696Total employee remuneration .............. 6,197,982 11,492,284 5,694,353 37,611,584Capitalised portion of total remuneration ...... 1,755,893 4,211,166 1,459,838 10,890,269Key management compensation was:Nine-month periods endedYear ended 31 December30 September2005 2006 2006 2007$ $ $ $(Unaudited)Salaries and other short-term benefits ......... 4,237,786 4,111,948 3,213,987 3,093,756Share-based payments .................... 781,114 753,174 333,810 22,556,8425,018,900 4,865,122 3,547,797 25,650,5988 Discontinued operationsOn 6 June, 2006, the Group entered into an agreement to sell Heritage Congo Limited which held allof the Group’s interests in the Noumbi Exploration Permit and the Kouakouala A and B licences inthe Republic of Congo (‘‘Congo’’) to Afren PLC, subject to a number of conditions precedent andpre-emption rights. During 2006, the Group’s partners in the Kouakouala A and B licences exercisedtheir pre-emption rights in respect of the sale of these assets. Accordingly, the Group sold these assetsto three separate public entities later in 2006.On 22 November, 2006, the Group completed the sale of Heritage Congo Limited, which held a 14%working interest in the Noumbi Exploration Permit, to Afren PLC (‘‘Afren’’) for the followingconsideration:a) Cash of $21,000,000; andb) 1,500,000 Afren warrants, with a term of five years and an exercise price of £0.60 per share. Thefair value of the Afren warrants, determined by using the Black-Scholes model, was $719,380 atthe date of sale (note 13).On 18 January 2007, the Group finalized the statement of adjustments relating to the sale of its 25%working interest in the Kouakouala A and 30% working interest in the Kouakouala B licence in196