Prospectus re Admission to the Official List - Heritage Oil

In November 2007, the Group farmed-in to two onshore exploration licenses in the Republic of Mali,in North-West Africa, with a gross area of over 72,000 square km. The Group was appointed asoperator. Wholly owned subsidiaries of the Corporation have acquired a 75% working interest inBlock 7 and Block 11. In return for earning the working interest the Corporation will fund all costs ofthe obligatory work programs for the next two years in both blocks, at a total estimated cost for thetwo licenses of between $15 million and $20 million.In February 2008, the Corporation announced that it will enter into a corporate reorganisation whichwill result in a newly incorporated company, Heritage Oil Limited (‘‘Heritage Jersey’’), becoming theparent company of the Corporation and its current subsidiaries.In connection with this reorganisation Heritage Jersey has agreed that, provided the reorganisation iscompleted, the 2007 Convertible Bonds outstanding at that date will be convertible with shares ofHeritage Jersey rather than shares of the Corporation.28 Explanation of transition to IFRSReconciliation of equity reported under previous Canadian Generally Accepted Accounting Principles(CGAAP) to equity under International Financial Reporting Standards (IFRS):At the date of transition IFRS—1 January 2005Effect ofPrevious transitionNotes CGAAP to IFRS IFRS$ $ $AssetsNon-current assetsIntangible exploration assets ........... (b),(c) — 32,725,642 32,725,642Intangible development costs .......... 1,013,012 — 1,013,012Property, plant and equipment ......... (a),(b),(d),(g) 54,083,097 (32,306,191) 21,776,90655,096,109 419,451 55,515,560Current assetsInventories ....................... (d) 94,483 24,976 119,459Prepaid expenses ................... 272,168 — 272,168Trade and other receivables ........... 8,920,963 — 8,920,963Cash and cash equivalents ............ 16,235,523 — 16,235,52325,523,137 24,976 25,548,11380,619,246 444,427 81,063,673LiabilitiesCurrent liabilityTrade and other payables ............. 6,397,247 — 6,397,247Non-current liabilityProvisions ........................ 328,553 — 328,5536,725,800 — 6,725,80073,893,446 444,427 74,337,873EquityShare capital ...................... 21,434,168 — 21,434,168Reserves ......................... 24,421 — 24,421Retained earnings .................. (a)(c)(d)(g) 52,434,857 444,427 52,879,28473,893,446 444,427 74,337,873211