Prospectus re Admission to the Official List - Heritage Oil

PRO FORMA NET ASSET STATEMENTThe following pro forma net asset statement of the Group as at 30 September 2007 is prepared forillustrative purposes only and, because of its nature, addresses a hypothetical situation and therefore doesnot represent the actual financial position of the Group. It is prepared to illustrate the effect on theconsolidated balance sheet of the Group of a fund raising that the Group closed on 14 November 2007, asif the placing had taken place on 30 September 2007, and is based on the consolidated balance sheet of theGroup as at 30 September 2007 which has been extracted without material adjustment from the financialinformation set out in Part VII ‘‘Financial Information’’.Equity fundraisingadjustment Group30 September 2007 (note 2) Pro forma$ $ $(note 1) (note 2)AssetsIntangible exploration assets ................... 85,746,870 — 85,746,870Property, plant and equipment ................. 59,105,312 — 59,105,312Other financial assets ........................ 4,200,909 — 4,200,909149,053,091 — 149,053,091Current assetsInventories ............................... 79,768 — 79,768Prepaid expenses ........................... 340,402 — 340,402Trade and other receivables ................... 6,455,303 — 6,455,303Cash and cash equivalents .................... 61,894,711 176,511,326 238,406,03768,770,184 176,511,326 245,281,510217,823,275 176,511,326 394,334,601LiabilitiesCurrent liabilitiesTrade and other payables ..................... 15,781,606 — 15,781,606Borrowings ............................... 160,224 — 160,22415,941,830 — 15,941,830Non Current LiabilitiesBorrowings ............................... 144,918,765 — 144,918,765Provisions ................................ 133,274 — 133,274Derivative Financial Liability .................. 32,810,103 — 32,810,103177,862,142 — 177,862,142193,803,972 — 193,803,97224,019,303 176,511,326 200,530,629Notes:(1) The consolidated balance sheet of the Group as at 30 September 2007 has been extracted without material adjustment fromPart VII ‘‘Financial Information’’.(2) Net proceeds of the placing:Cdn$ $Placing proceeds .................................................. 181,500,000 186,436,800Placing expenses .................................................. (9,662,650) (9,925,474)Net proceeds of the Placing .......................................... 171,837,350 176,511,326The gross placing proceeds of Cdn$181,500,000 ($186,436,800) are based on 3,000,000 Common Shares being issued by theGroup pursuant to the placing each at a price of Cdn$60.50 ($62.15) per Common Share. The Group’s Common Shares have nopar value. Offer expenses are the fees and expenses incurred in connection with the placing of Cdn$9,662,650 ($9,925,474)related principally to investment banking, legal and accounting fees. The exchange rate used was Cdn$1: $1.0272.(3) No account has been taken of any trading or other transactions since 30 September 2007.Impact on EarningsThe Directors believe that, had the equity financing occurred at the beginning of the last financial period,the consolidated income statement would have been affected. Additional finance income would have beengenerated from interest earned on increased cash deposits arising from any unutilised net offer proceeds.239