Prospectus re Admission to the Official List - Heritage Oil

Congo to the other partners in the licences, Maurel et Prom and Burren Energy, for the followingconsideration:a) Cash of $6,052,515; andb) An overriding royalty of 15% over a 30% working interest in the Kouakouala B licence in relationto the Mengo field. The Mengo field is not in production.All of the disposition agreements were completed by 12 December 2006. The gain on disposal of all ofthe Group’s interests in the Congo was $9,200,700 in 2006. As at 31 December 2006, accountsreceivable included $5,157,646 relating to the unpaid portion of the sales proceeds, which was receivedin January 2007.The results of operations in Congo have been classified as earnings from discontinued operations. Thefollowing table provides additional information with respect to the amounts included in the earningsfrom discontinued operations.Year ended Period ended Period ended31 December 12 December 30 September2005 2006 2006$ $ $(Unaudited)RevenuePetroleum and natural gas ........................ 5,444,936 5,116,368 3,805,505Interest ...................................... 41,361 — —Other ....................................... 1,013,010 645,915 679,5436,499,307 5,762,283 4,485,048ExpensesOperating .................................... 991,956 902,776 653,344Royalties ..................................... 816,740 767,455 570,826Foreign exchange losses .......................... 69,623 — —Depletion, depreciation and accretion ................ 1,110,547 843,562 843,5622,988,866 2,513,793 2,067,7323,510,441 3,248,490 2,417,316The following table provides additional information with respect to the amounts included in thebalance sheet as assets of the disposal group held for sale.12 December 30 September2006 2006$ $(Unaudited)AssetsNon-current assetsIntangible exploration assets (note 10) ......................... 8,323,966 8,323,966Property, plant and equipment (note 12) ....................... 11,638,420 8,638,12519,962,386 16,962,091CurrentTrade and other receivables ................................. — 375,651Inventories ............................................. — 49,761— 425,41219,962,386 17,387,503LiabilitiesCurrent liabilitiesTrade and other payables ................................... 971,421 807,208Non-currentProvisions (note 18) ...................................... 419,770 419,7701,391,191 1,226,978Net assets .............................................. 18,571,195 16,160,525197