Prospectus re Admission to the Official List - Heritage Oil

31 December 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Land and buildingCost—Beginning of period ............... 11,984,701 11,984,701 11,984,701 11,984,701Accumulated depletion and depreciation—Beginning of period .................. (34,795) (173,973) (173,973) (313,151)Net book amount—Beginning of period ...... 11,949,906 11,810,728 11,810,728 11,671,550Net book amount—Beginning of period ..... 11,949,906 11,810,728 11,810,728 11,671,550Depletion and depreciation ............... (139,178) (139,178) (104,384) (104,383)Net book amount—End of period .......... 11,810,728 11,671,550 11,706,344 11,567,167Cost—End of period ................... 11,984,701 11,984,701 11,984,701 11,984,701Accumulated depletion and depreciation—Endof period .......................... (173,973) (313,151) (278,357) (417,534)Net book amount—End of period .......... 11,810,728 11,671,550 11,706,344 11,567,167OtherCost—Beginning of period ............... 481,771 1,176,671 1,176,671 2,687,590Accumulated depletion and depreciation—Beginning of period .................. (21,051) (179,148) (179,148) (408,520)Net book amount—Beginning of period ...... 460,720 997,523 997,523 2,279,070Net book amount—Beginning of period ..... 460,720 997,523 997,523 2,279,070Additions ........................... 694,900 1,510,919 1,361,964 11,758,850Depletion and depreciation ............... (158,097) (229,372) (168,310) (607,878)Net book amount—End of period .......... 997,523 2,279,070 2,191,177 13,430,042Cost—End of period ................... 1,176,671 2,687,590 2,538,635 14,446,440Accumulated depletion and depreciation—Endof period .......................... (179,148) (408,520) (347,458) (1,016,398)Net book amount—End of period .......... 997,523 2,279,070 2,191,177 13,430,042The corporate office which represents the land and building category serves as security for a long-termloan (note 17).The carrying value of the drilling rig was written down to its estimated fair value based on third-partquoted sales prices. This resulted in an impairment write-down of $1,799,762 recognised in the incomestatement during the nine-month period ended 30 September 2007.13 Other financial assets31 December 30 September2005 2006 2006 2007$ $ $ $(Unaudited)Investment in warrants .......................... — 914,558 — 977,909Investment in unlisted securities ................... — — — 3,223,000— 914,558 — 4,200,909The investment in Afren warrants (note 8) is classified as held for trading. The investment in unlistedsecurities represents common shares in a private company named SeaDragon (note 9), which isclassified as available-for-sale.There were no other disposals (see note 9) or impairment losses on held for trading oravailable-for-sale financial assets in the reporting periods under these financial statements.201