Prospectus re Admission to the Official List - Heritage Oil

12 Property, plant and equipment31 December 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Petroleum and natural gas interests .......... 13,255,901 18,091,216 11,349,845 36,328,564Drilling equipment ...................... 2,693,618 3,544,969 3,461,756 3,544,969Land and building ..................... 11,984,701 11,984,701 11,984,701 11,984,701Other ............................... 1,176,671 2,687,590 2,538,635 14,446,440Property, plant and equipment, at cost ...... 29,110,891 36,308,476 29,334,937 66,304,674Accumulated depletion and depreciation ..... (3,828,339) (4,121,378) (3,787,998) (7,199,362)Net book amount ...................... 25,282,552 32,187,098 25,546,939 59,105,312Reconciliation of movements during the periodPetroleum and natural gas interestsCost—Beginning of period ............... 9,250,840 13,255,901 13,255,901 18,091,216Accumulated depletion and depreciation—Beginning of period .................. (1,803,668) (3,303,490) (3,303,490) (3,051,966)Net book amount—Beginning of period ...... 7,447,172 9,952,411 9,952,411 15,039,250Net book value—Beginning of period ....... 7,447,172 9,952,411 9,952,411 15,039,250Exchange differences ................... — 103,065 30,333 136,216Additions ........................... 4,005,061 14,128,855 7,460,216 8,608,026Assets transferred from intangible exploration(note 10) .......................... — 1,133,000 1,133,000 9,493,106Assets transferred to discontinued operations(note 8) ........................... — (8,638,125) (8,638,125) —Depletion and depreciation ............... (1,499,822) (1,639,956) (1,443,833) (565,961)Net book amount—End of period .......... 9,952,411 15,039,250 8,494,002 32,710,637Cost—End of period ................... 13,255,901 18,091,216 11,349,845 36,328,564Accumulated depletion and depreciation—Endof period .......................... (3,303,490) (3,051,966) (2,855,843) (3,617,927)Net book amount—End of period .......... 9,952,411 15,039,250 8,494,002 32,710,637Drilling and barge equipmentCost—Beginning of period ............... 2,055,006 2,693,618 2,693,618 3,544,969Accumulated depletion and depreciation—Beginning of period .................. (135,898) (171,728) (171,728) (347,741)Net book amount—Beginning of period ...... 1,919,108 2,521,890 2,521,890 3,197,228Net book amount—Beginning of period ..... 1,919,108 2,521,890 2,521,890 3,197,228Additions ........................... 638,612 851,351 768,138 —Depletion and depreciation ............... (35,830) (176,013) (134,612) —Impairment .......................... — — — (1,799,762)Net book amount—End of period .......... 2,521,890 3,197,228 3,155,416 1,397,466Cost—End of period ................... 2,693,618 3,544,969 3,461,756 3,544,969Accumulated depletion and depreciation—Endof period .......................... (171,728) (347,741) (306,340) (2,147,503)Net book amount—End of period .......... 2,521,890 3,197,228 3,155,416 1,397,466200